OTAGO POWER BOARD.

Otago Daily Times, Issue 20867, 6 November 1929, Page 7

OTAGO POWER BOARD.

ALLEGATION OF EXTRAVAGANCE

CRITICISM IN LEGISLATIVE

COUNCIL.

(Paou Our PmuuEUtm Rhpomek-) WELLINGTON, November 5.

Exception was taken in the Legislative Council to-day to the clause in the Local Legislation Bill authorising the Otago Electric Power Board to raise a loan of £15,000 to complete its undertakings. “ A position has arisen in regard to this clause,” said Mr R. Scott, “ which seems to me to threaten the ratepayers through the work of either an incompetent or an extravagant hoard.” In May, 1924, the board, authorised by the ratepayers, raised a loan of £200,000. Subsequently it borrowed £13,000 under the Local Bodies’ Loans’ Act without the authority of the ratepayers, and later a further £6OOO under the Local Legislation Act. Still the board had insufficient money to carry out its purposes and now it asked the Legislature to validate its past expenditure and without the consent of the ratepayers to authorise the raising of a further amount. “ This is getting the ratepayers into a very serious position,” continued Mr Scott. “There ir a feeling all through Otago to-day of insecurity. This feeling is, I think, well grounded, and people are asking where legislation validating the overexpenditure of the board is likely to stop. I think the attention of the Government should be called to this. I think the board, whether through incompetence or underestimating its works, has gone to too great lengths in expending money which has come out of the ratepayers’ pockets, largely without taking a poll. It is raising in the minds of the people doubt as to how far the ratepayers may be cast in costs where they have an extravagant board linking them up with electric power. I regard with a great deal of suspicion the action of the board in carrying on works in this extravagant way." Endorsing these remarks Mr D, T. Fleming said that Mr Scott had performed useful service in drawing "attention to the practice complained of. He objected to the ratepayers having no say in the matter. The board had been only five years in operation and had shown a loss of £42,000. It should have been compelled in some way to go before the ratepayers and explain its attitude. I am bound to admit,” said the Leader of the Council (Mr T. K. Sidey), ' that the board seems to have acted m such a way as to justify the remarks of the last two speakers. The hoard does not appear to have been sufficiently careful. One can only hope it will be a warning to it in future.” The clause was agreed to.