FULFILMENT OF PROMISES

Southland Times, Issue 23888, 5 August 1939, Page 5

FULFILMENT OF PROMISES

CLAIM MADE BY MINISTER CONTROL OF POWER SUPPLY IN SOUTHLAND A claim that the Government had completely fulfilled the promises it made on taking over the Southland electric power supply system was contained in a letter which the Southland provincial executive of the Farmers Union received yesterday from the Minister of Public Works (the Hon. R. Semple). The letter was in reply to an inquiry when minimum guarantees by consumers would be reduced or abolished. , , “You will remember that when the ballot was taken in 1936 on the question of Government or power board control of the electric supply in Southland, ratepayers were sent a copy of a letter from my colleague the Minister of Finance (the Hon. W. Nash) to the chairman of the Southland Electric Power Board setting out clearly the added conditions which the Government agreed to in the event of the ballot favouring the Government, stated the Minister’s letter. “From that letter I find the Government agreed (1) not to levy any further land rates; (2) to abolish the charge then made for meter rents; (3) not to increase the present charges for electric power; (4) to provide power for new industries at reasonable rates; (5) to reduce or abolish the minimum charges as far as financial conditions warrant; (6) to reduce immediately the charge for the first 42 units from 7d to 6Jd a unit; and (7) to provide a continuous supply of power by connecting Southland with the power stations at Waitaki and Lake Coleridge. . , “I would take this opportunity of drawing your union’s attention to the fact that items 1,2, 4, 6 and 7 have been honoured in full. Item 3 has been more than fulfilled in that not only has the Government not increased the 1936 charges, but has this year reduced them. This, together with the work involved in item 7, has put the Government to very considerable expense for the benefit of the people of Southland. There remains item 5 which states that as far as financial conditions warrant the minimum charges would be reduced or abolished and here I desire to state the Government has no intention of evading the issue. When financial conditions warrant the guarantees will be reduced or abolished; but financial conditions do not yet warrant a general removal or reduction of guarantees since the recent reduction in tariffs will mean a reduced revenue and the Dunedin-Gore transmission line will mean increased costs. . “However, should any individual consumer consider that his consumption is so far altered from 1936 that his altered financial condition would warrant the reduction or removal of his annual guarantee, I shall be pleased to have his case investigated, concluded the letter.