REDRUTH TOWNSHIP.

Timaru Herald, Volume CXXV, Issue 18539, 9 April 1930, Page 8

REDRUTH TOWNSHIP.

CONTROL OF POWER SUPPLY. POWER BOARD STAND FIRM. The question of the Timaru Borough Council taking over from the South Canterbury Electric Power Board those areas in the Boroqgh at present supplied with light and power again came before the Power Board at its monthly meeting yesterday. The matter was discussed at the March meeting of the Board, the position of the Redruth township being the particular point at issue. At that meeting the Board decided:—“That the South Canterbury Electric Power Board hereby lays down as its policy that it cannot agree to the alienation of any of its territory, which may now, or at any future time, be added to the Timaru Borough.” Yesterday a letter from the Borough Council was read as follows: —“At a meeting of the Council held on March 24, the following resolution was carried: ‘That the South Canterbury Electric Power Board be asked to appoint two members, together with their engineermanager, to confer with a similar number of representatives of the Council in regard to the Council taking over the electric light and power supply to those portions of the Borough at present served by the Power Board.’ ”

The chairman (Mr J. Kennedy) said that the matter was dealt with, decidedly, at the last meeting, and the letter was out of order for discussion. He regretted that the matter had been brought up again, but out of courtesy to the Council, he would move that the letter be received. Continuing, the chairman said that he had not been idle in the meantime, but had secured some information cn the matter, which would give the public of Timaru some idea of the position. He said that Redruth township was contained in Levels special area, and the land therein was pledged as security to the debenture holders. Because the Timaru Borough Council controlled the roading. drainage and water supply of Redruth township, there was no reason why they should also control the retail of electricity. As far as accidents were concerned, these usually occurred throughbad road formation, hedges at corners, negligence, or acts of God. The responsibility of the Timaru Borough Council could be no greater whether they controlled the lighting or otherwise. The Board was capable of maintaining continuity of supply. With regard to lighting, they were prepared to light the streets in Redruth -township on the same terms as given to other boroughs and townships in their district where the councils concerned controlled everything except the retail of electricity.

Mr Kennedy went on to say that it would appear that the Timaru Borough Council would utilise the electricity profits derived from Redruth township for objects foreign to the source from which they were derived. It also appeared that the Mayor of Timaru was anxious that his Council should control the retail of electricity in all the thickly populated areas of Levels County bounding the borough. The Levels County special area ratepayers however, would, no doubt, combat any attempt on the part of the Timaru Borough Council to wrest from them these areas, which would eventually be the means of reducing the cost of electricity to them. Practically every power board in the Dominion controlled the retail of electricity in various portions of the cities and boroughs within their districts, while Auckland, Wanganui - Rangitikei, Poverty Bay. and many other power boards controlled the retail of electricity in the cities and boroughs within their districts, the councils concerned controlling everything else. Continuing, the chairman said that several borough councils in a similar position to Timaru (one quite recently) had approached the Government to have their license extended to include the added portion of their boroughs. The reply they received was that such a matter could not be considered for a moment, as power board areas were not going to be curtailed because portions of them might be included in boroughs holding restricted licenses—in each such case the electrical distribution had remained with the Board. The Electric Power Boards legislation was intended expressly to place electrical undertakings under the control of Boards so that the national water power should not be monopolised by cities and boroughs, but be available to the people as a whole, and it was only by power board control over large districts (with one administration) that electricity could be equitably distributed. The Timaru Borough Council might gain a temporary advantage, by increased electricity profits, but as the farmers, who were the backbone of South Canterbury (upon whom the Borough of Timaru. depended for its very existence) could only spend their ) pound (£1) once, if they handed it to the Power Board in the form of increased electricity bills, they could not pass it to the shop-keeper in Timaru in exchange for goods. In conclusion, Mr Kennedy referred the Timaru Borough Council to their agreement with the Board for bulk supply, which did not expire until April 1, 1932:—Clause 3 states: “The Timaru Borough Council shall utilise the energy so supplied, for the purpose of distributing to consumers within the area of its license.” Clause 11 stated: “The Timaru Borough Council shall not use the electricity supplied them under this agreement, or deal with the electricity in any manner so as to unduly or improperly interfere with the supply of electricity to any local authority, person or other consumer, by the Board.” The chairman further stated that he had written to Mr F. T. Kissel, chief electrical engineer, Public Works Department, and he had replied stating that it was not in conformity with the Department’s general policy to allow the electrical supply business in such areas to be taken away from the Power Board and handed over to the Borough. Similar cases had occurred, particularly in Hamilton, but in each case the electrical distribution had remained with the board. The chairman also read an Order-in-Council constituting the South Canterbury Electric Power Board District and license. He added that he would leave the matter at that. He said that he regretted that the Borough Council had seen fit to take the matter further. If they wished to go any further, it was for them to make the next move. While he was chairman of the Board, the stand he had outlined would be maintained.

Mr C. J. Talbot said that he took it that the chairman had made a personal statement. He did not altogether agree with the remarks that the Borough Council would utilise the electricity profits derived from Redruth Township for objects foreign to the source from which they were derived. He thought that this statement might be unwise. The Board did not wish to give offence, and there was just a suggestion of offence in the Implication that the Borough wished to get control of Redruth so as to use the profits for other purposes. On the other hand, remarks were made that steps would be taken to bring Board members to

their senses, and such remarks hurt very much. The chairman said that the Board was compelled to use electricity for the benefit of its consumers. However, it was for members to say whethei* they wished the clause deleted. Mr South: “It is correct.” Mr C. E. Kerr: “It is an absolute fact that we are not allowed to make profits. The Borough Council can.” Mr G. Saunders: “In my opinion if it was not for making profits, they would not want to take it over.” There was no further discussion.