ELECTRICAL TRADERS

Otago Daily Times, Issue 19258, 23 August 1924, Page 10

ELECTRICAL TRADERS

COMPETITION OF POWER BOARDS. ALLEGED UNFAIR TRADING. (Fnoii Oub Own Gouresi’ONDent.) WELLINGTON, August 22. _ Tho question of competition of electric power boards vviHi olcctxicfil trailers in tho supply of electrical equipment has Ix'eti brought before the notice of the Government in a communication to the Minister of Public Works by the. Electric r i raders Association. Tho main points are explained in a somewhat lengthy communication, 'the point was emphasised that tho electrical traders were most anxious to co-opcrato with the power boards, whoso developmental work must lead to great developments m the traders’ business, while the advertising and supplying of all classes of electrical appliances and machinery by tho traders must assist, tho boards in the sale of their current. Tho traders state that they aro new preparing a general scheme (or advertising and supplying all classes of electrical ap-, pliances ami machinery, and this must ho of assistance (o the hoards in tho sale of their current. They claim that they in no way attempt to fix or regulate prices, and competition between them is keen and unstrictcd.

'Tho majority of the boards wore found to ho sympathetic to tho views of tho traders, and it was believed (hat the hoards would not attempt trading operations outside their legitimate sphere or in competition* with established businesses. It was found, However, in this respect that there were some exceptions. Tt would not bo fair that established lirms should ho threatened with destruction by tho competitive trading of boards, and more, especially of hoards operating on unsound lines. Certain boards were operating in that way and going beyond the bounds intended when the law was framed, Iho greatest ollendcr was tho Southland. Board, but there wore also one or two others. The traders state that they have no desire to attack tho Southland Board or reflect on it in any way, but they had good reason to complain of tho extensive trading business on which it had embarked to tho detriment of private traders, and also to tho manner in which it conducted its business. Tho law as embodied in section 90 of the Act had boon embodied merely as a safeguard to protect the consumers from extortionate prices. Some boards unfortunately had gone very much further than was ever contemplated, and tho Southland Bowel was the worst example. This board could not only sell goods, but it could ’advance the money to consumers to purchase, and it had obtained tho Southland agency of a Canadian range, and had recently imported a large number of these ranges in pieces. So largo was the order that the Canadian Company had sent a representative out to instruct tho board’s workmen in the. building of tho ranges. Traders, it was stated, had over £1,030,000 invested in the electrical business, and had a right to protest against public bodies acting as agents for any particular appliance to the exclusion of others in the territory. It was alleged that the costing system adopted by this board would bankrupt a private business in six months. It was maintained that tho hoard's business methods were unsound. The traders hold that an amendment in the machinery and appliances of tho law is necessary to ensure that trading should only be undertaken by boards when it was in the interests of tho ratepayers, because there are no private traders within a. board’s territory, or because supplies cannot be obtained from private traders at prices which, in the Minister’s opinion, are fair and reasonable.

Tho Minister of Pul/! it- Works has replied that ho hesitated to give a definite answer until ho hn.s discussed the matter with the acting-electrical engineer and his departmental heads, and ho is not clear where the Government conies into the matter. However, ho is naturally interested in development of hydro-electricity and the responsibilities now being taken in this direction by local bodies. He is therefore interested to seo that the money they spend is utilised for the purpose for which it is borrowed, and that a trading account of a local body shall stand investigation bv tho Auditor and Controller-General for the reason that it is public money.

It is contended by tho suppliers of electrical apparatus that notwithstanding the fact that tho Southland Power Board requires over £7£O,C<K) to complete its scheme prior to any revenue being earned, it is still competing with private enterprise to tho extent of thousands of pounds per annum. It is alleged that the board will require to sing fresh capital, which, all things being equal, will mean an increase in tho price per unit of tho available current. Copier, of a. circular issued to canvassers in April contained the following;— At its last meeting this board passed a resolution directing the office to impress upon the canvassers tho necessity for pushin o I* l © appliances which tho board wishes to offer. Further, tho board resolved to make it a rule that appliance orders accopted from consumers wtio wish to bo financed by the board must be confined to the makers which the hoard has at present in stock, and to th 0 lines for which tho board has tho Southland I would therefore direct your attention 'to the fact tnat yon should particularly note the position regarding ranges and" motors. These are the most important linos, and as tho bo®ro has tho Southland agency for tho M Clary range and for the Metropolitan Vickers English motor, you know IhoaH-’on that you should take with regard to these lines.