POWER FOR TIMARU

Timaru Herald, Volume CXXXVII, Issue 19515, 14 June 1933, Page 4

POWER FOR TIMARU

BOARD AND COUNCIL. AGREEMENT IN SIGHT. The South Canterbury Power Board at its monthly meeting yesterday, emowered its special committee which has been negotiating with the Timaru Borough Council in respect to an agreement for the bulk supply of power to the Borough, to finalise the agreement with the Council. The committee consists of the chairman of the Board (Mr J. Kennedy), the chairman of the Finance Committee (Mr G. Dash), and the engineer (Mr G. W. Morrison). A letter was received from the Town Clerk (Mr E. A. Killick) stating that

at a meeting of the Council the previous evening, a recommendation of the Electricity Committee regarding the agreement with the Board had been adopted as follow’s:—“That instead of payment under the expired agreement of £2 10s per k.v.a., for the first 200 k.v.a., and the balance at £2, together with an annual payment of £225 to the Power Board, that an offer be made to the Board of £2 4s per k.v.a., demand with no other payment for any other service such as rent of panel, and that this be a definite and final offer.” Mr G. Dash said that he would move on behalf of the committee, and he was sure the chairman would second it, and the engineer would support it, that the Board accept the offer of the Council, the agreement to be for a duration of five years, to be dated from October 1 last, which was the date on which the Board had made application for a new agreement. The old agreement terminated a long time ago, and as both the Board and the Council had been hoping for a reduction in Government charges, they had not come to any agreement. It was only in September last, when it was evident that they were not going to get any reduction in cost, that they approached the Council in the matter of an agreement. He was sure the Council would realise that ft was a fair and reasonable date they were asking for. Mr Dash said that he did not propose to go into the figures. The Board had handed the matter over to a committee consisting of the chairman, the engineer, and the speaker, and the Board con’l take it that the committee was satisfied that it was in the best interests of the Board to accept the Council’s offer. The chairman seconded the motion. He said that the committees representing the Board and the Council had dealt with the matter in an amicable way. Two or three alternative proposals had been submitted, and finally they considered they had got something which should be satisfactory to both parties. Mr J. R. Hart said that he was afraid there would be a hold up if there was a difference in the dates. The Borough Council had based its offer as from April Ist of this year; the agreement was to take effect from that date, for the reason that the Council could not very well go back into last financial year. They could not possibly consider an offer of this sort. The offer was a good deal better than the Board had expected, and he hoped the Board would agree to accept the terms effered. If the matter was held up any further, the Council might turn the whole thing down altogether. The present offer was the last the Council was likely to make. He did not for one moment think that the Council would date the agreement back to October last, and he thought the Board should waive this and accept the terms right away. Mr H. J. Mathers said that it was understood at (he Council meeting that the agreement was to date from April Ist. If the Council's load increased, so would the Board’s revenue increase. Under the old system, the Board’s revenue remained a fixture. Mr Hart pointed out that the Borough load at present was 1564 k.v.a., whereas at this time last year It was 1380 k.v.a. Mr Dash said that they had been disappointed at not getting a better offer. There was no feeling in the matter at all. They had done their best for the Board, and the Council's Committee had done its best for the Council. Seeing the Council had done so Well, they should be generously just, and date the agreement from the time the Board had asked for an agreement to be entered into. It was not the Board's fault that an agreement had not been arrived at sooner. He had asked the Town Clerk if there was anything in the resolution relating to the date, and he had said that there was not. Mr Mathers: “It was an understanding.” Mr Dash: “An understanding might be a misunderstanding.” The engineer went into the figures, and said that the amount involved in the difference in the dates was £lB7. Mr Hart moved as an amendment that the agreement with the Council be signed, to take effect from April Ist. He added that the Board had not convinced one member of the Council that tire Board was entitled to anything extra at all. After further discussion, it was agreed to withdraw the motion and amendment, and it was then decided to leave the matter in the hands of the special committee to finalise. Mr Dash congratulated the members of the Council on having made an agreement with the Board which was of distinct advantage to the Council. There was only one thing which filled him with humiliation, and that was that the eloquence of the chairman, the engineer and himself had failed to convince the members of the Council. The chairman: “All bar one."