POWER BOARD SCHEME

Southland Times, Issue 22921, 20 June 1936, Page 6

POWER BOARD SCHEME

MOVE TO RESCIND MOTION NOTICE GIVEN BY MR WRAYTT CHAIRMAN ON FUTURE POLICY Mr George Wraytt, a member of the Southland Power Board, informed The Southland Tinies last evening that he had posted to the secretary of the Power Board notice of motion to rescind at the next meeting of the hoard the following resolution carried by the board at its meeting on Thursday:— That the resolution to take a poll or referendum of the ratepayers on the question of whether or not the offer of the Government to take over the board’s undertaking both as to assets and liabilities should be accepted by the board be and is hereby rescinded. Urgent Measures. The extension of the headworks at Monowai, the conversion of the London loan, reduced charges for electric power and the elimination of the land rate were suggested by Mr J. T. Carswell, chairman of the Southland Electric Power Board, as the most urgent measures in. the board’s future policy in an interview with The Southland Times yesterday. “The decision of the board to rescind the resolution about the proposed referendum has, I hope, ended the series of delays which has hampered the board for about two years past,” said Mr Carswell. “We have tried on several occasions to negotiate with the Government for the supply of electricpower from Waitaki, and, failing that, to get permission to extend the headworks at Monowai. In March last the Hon. W. Nash assured the board that while the Government would not sell current to the board from Waitaki it would place no obstacle in the way of the board’s desire to extend Monowai. In the circumstances it looks, therefore, as if the board will proceed with the extension, as the load is growing so quickly that unquestionably additional current above the present capacity of Monowai will be required in the near future. There is, of course, the possibility of the board utilizing the standby plant owned by the City Corporation. This would tide matters over for a year or two, but it would be purely a temporary measure.” The London Loan. At the present time, said Mr Carswell, the board’s most pressing duty was to complete the conversion of the London loan which would fall due on September 15. The Government had assured the board that the Government’s guarantee would be forthcoming for the remainder of the time (18 years) upon the converted loan. With the present state of the London money market no great difficulty was anticipated in effecting the conversion, and it was hoped that favourable terms would be secured not only on the interest charges, but also concerning the discounts. That was a matter which could only be finalized after the negotiations in London. The aim of the board, once conversion was completed, would be first, to build up the load so as to entirely eliminate the land rate. Last year the land rate was three-fifths of a penny, and this year it was hoped it would not exceed a halfpenny. The load was increasing at such a rate as to lead the board to believe that in four or five years at the most there would be no rate at all. As evidence of this he said that for the two months April and May, 1936, the revenue received from current was over £lOOO more than for the corresponding two months of 1935. Elimination of Land Rate. Discussing the possible reductions in the price of current, Mi' Carswell said that this would also be aimed at by the board, but it would have to take second place to the elimination of the land rate. However, it was significant that from May of this year the meter rents had been reduced by half, and at the present time the board was considering the elimination of the meter rents altogether. This it hoped to make an accomplished fact at an early date, say, at the beginning of the 1937-38 period. This,.of course, had not been finally decided by the board, but would have many supporters at the board table. “As one of the representatives of the City of Invercargill it will be ray aim to try to bring the Invercargill City Council and the Power Board into closer touch with each other,” said Mr Carswell. “Invercargill City is a partner in the enterprise, and anything that is for the benefit of the Southland Electric Power Board will naturally benefit Invercargill also. Furthermore, the board will have appreciated, and I believe, does now appreciate, the difficulties under which the city is working through its ownership of the gasworks, and in othei' respects; also through the loss arising from the working of the tramways, for which the Invercargill electric power station was mainly established in the first instance. Personally, I feel that much more could be done by team work between city councillors and members of the board, and I feel sure that a meeting in conference similar to that held last year would aid materially in the council and the board working harmoniously together.” Mr Denham’s Comment A number of prominent public men who were asked to comment on the board’s decision declined to do so, but Mr W. M. C. Denham, M.P., made the following statement when interviewed: “No doubt Cabinet will be surprised to learn of this action, particularly as the suggestion to consult the people emanated from the board itself. The nationalization of rhe whole of the electric undertakings of the Dominion must ultimately come, and in the meantime there is the unwelcome probability that the people of Southland will have to continue to contribute rates in order that the Power Board may function. The offer made by the Cabinet Ministers, if accepted, would have meant the vesting of the undertaking in the State, with all its liabilities and assets. Southland would have been immediately freed from further rating, while the price of electricity would have been no more than at present, with every prospect of it being less. To expend another £lOO,OOO on Monowai must surely, from a national standpoint, be an unwise economic venture when Waitaki has ample unused power available for all.” “Liberal Offer Made.” Asked whether the Ministers concerned were likely to be disappointed at this sudden change in the position, Mr Denham said that no doubt a statement would be made because those gentlemen felt that a fine and liberal offer had been made by the Government. The decision to refrain from consulting the ratepayers at this stage need not mean that the board had irrevoc-

ably turned down the question of a sale to the Government, and in view of the uncertainty and distinct element of risk in the board endeavouring to rearrange its finance on the London market, coupled with a heavy outlay facing it at Monowai, there was some confort in the thought that better and more prudent counsel might yet prevail.