REBATE OF £20,000

New Zealand Herald, Volume LXXIV, Issue 22779, 13 July 1937, Page 11

REBATE OF £20,000

POWER FOR THE TRAMS NEW AGREEMENT SIGNED A £20,000 adjustment of power charges appeared on the income section of the net revenue account presented to the Auckland Transport Board yesterday, and the board executed a new agreement With the Auckland ElectricPower Board for new terms on which power charges are to he based in future. . This agreement concludes a lengthy series of negotiations between the two parties. Under the original legislation constituting the Power Board, all electricity used 'for t ram way purposes was to be supplied by the board and charged at cost price. In 1929 an agreement was reached between the two boards, setting out the method by which the price was to be computed. It had previously been found in practice that many questions arose as to the method of computation, and the agreement of 1929 was intended to dispose of all these questions. Since then, however, from time to time discussion aroK: as to whether certain items should or should not be included in the computation of the cost of power, notwithstanding that the 1929 agreement was intended to bring to an end all such questions. Recently it had •been felt by both hoards that it would be more satisfactory to seek a new basis upon which to charge for electric-power supplied by the one to the other. This new basis found a'nd embodied in the new a ?reement. It is provided that the unit charge Transport Board should bear a Definite ratio to the average unit charge collected from the whole of the Power ■Hoard's undertaking. I rorision is made for a revision of [ie agreement at stated intervals, if c ' r ciinistaiicosChange, and any outending issue will bo submitted to Arbitration. It is believed the new arrangement las the advantage over the old of gwtcr simplicity, leaves less room for he raising of rniy questions, and will 0 ' a ircr to bol.li parties.