ONE POWER BOARD

Press, Volume LXIII, Issue 19161, 18 November 1927, Page 17

ONE POWER BOARD

WAIMAKARIRI TO RAKAIA. PROPOSAL TO BE CONSIDERED. Representatives of all the power supply authorities in the districts between the Waimakariri and Rakaia rivers met in conference yesterday with Mr F. T. M. Kissel, Chief Electrical Engineer, Public Works Department, to discuss the formation of one Power Board for the whole area. The conference was held in the Government buildings. All of the eleven authorities, which are as follows, were represented: —Christchurch City Council, Sumner, Riccarton, and Lyttelton Borough Councils, Halswell, Waimairi, and Heathcote County Councils, SpringsEllesmere, Malvern, and Banks Peninsula Power Boards, and Tai Tapu Dairy Co.. Ltd., Mr R. G. Mac Gibbon, Resident Electrical Engineer, Public Works Department, was also present, Mr Kissel said the area from which the conference had been drawn wad tentatively that between the Waimakariri and Rakaia rivers. As his Department was interested, and if there was any argument he wanted to be in it, he suggested that an impartial chairman be appointed. Mr C. P. Agar (Tai Tapu Dairv Co.) was elected chairman. He said his company was the first to reticulate Lake Coleridge Power outside of Christchurch, and it was out for the consumers. There would be no difficulty, he considered, in falling into line with any scheme which met with the approval of the power supply authorities. The project before the meeting was very important, and surrounded with difficulties, engineering and commercial. He referred, to the reserves of some of the authorities, and the commitments of the Power Boards. "We are all here in the public interest," he said, "and what will be found good for the whole and without prejudice to the individual concerns should be acceptable." No Dictation. Mr Kissel said the Department did not want to dictate. It was evident that the Power Board movement had taken on in the Dominion. Quite a large proportion of its' area was now included in the Boards' districts. Mr Kissel detailed the functions of Power Boards, and said the advantage usually claimed for them was that the method of financing power supply was made easier. Boards were enabled to raise loans on the security of the rates. In New Zealand the latter had been collected in only one or two instances. Administrative costs were saved by the setting-up of the Boards. They were composed of men whose sole -interests as members were to reticulata their districts and supply power. The accounts of the Boards were self-con-tained, and no transfer could be made to other municipal or district activities. Tli is was satisfactory from the Government's which had considerable investments to protect. In the area froni the Waimakariri river to the Rakaia there were 11 supply authorities. The Government had also 45 consumers of considerable magnitude, in addition, in' the area. Under the usual contracts made with Power Boards the Government retained the right to supply Government Departments, local authorities, and other consumers. This was seldom exercised. Ifc was for the purpose or protecting any industries from exploitation. It could easily be seen that this power was necessary. Taking last year's figures as a basis £80,183 was obtained from the supply authorities in the area, and £42,470 from consumers supplied direct, or, if the City Council was excluded, £15,861 from the supply Authorities and £21,399 from the Department's own consumers. It had been suggested in the newspapers that the Government should hand over its consumers to the Power Boards, but there were one or two objections to this proposal, and this was one of the reasons for the conference. Loss of Revenue. Revenue would be lost, but the Department would not be able to dispense With its staff if the consumers were taken over piecemeal by the bodies at present distributing power. In the whole area the Government had an investment of £87.862, £75,257 of which was outside the City. This would have to be taken over by the new Power Board. The supply authorities had h capital investment of ' £983,640, £363,860 of which was outside the City. To some extent it was time that the City was getting a larger revenue from its investment than outside bodies. Last year the Council's return in revenue was 30 per cent, or capital, and that in the outside area 25" per cent, of the investment. The direct loss to the Government in the proposed new venture would be £32,000 a vear. This loss would be offset by the fact that the Government would be relieved of £87,862 capital investment. It was ii policy adopted with success in other parts of New Zealand. At first the Department would be worse off but it was recognised that an amalgamation of authorities would improve administration, and ultimately increase business. This would be to the Department's benefit in the long run. It might mean that any decreases m charges for power would be cut out for the time being. "The Government does not want to force this proposal on you,'' said Mr Kissel. The matter is" too big for a decision today. We shall be glad to assist you in going further into the matter. Mr P. W 7 . Sharpe (Christchurch City Council) said the matter had not been put before them previously. He had no authority regarding the matter and all he could do was to ask questions. He had no personal opinion about it yet. Mr Sharpe suggested that Mr Kissel supply the various authorities with the data he had given them. . _ Mr G. H. Judd (Malvern Power Board) said the information should be distributed and assimilated. It was too large a question to reach a decision on at the meeting. He suggested that the data be printed. "As the innocent instigator of -thi3 conference,'* said Mr G. Maginness (Springs-Ellesmere Power Board), "I think particulars should be given of the way in which the various services should be amalgamated." A comprehensive report was a necessity before an agreement could he reached. Areas Large Enough NowMr C. Flavel (Heathcote County Council) said one Board would be unwieldy. Looking at the map, some of the Boards appeared to have large enough areas now. The small bodies round Christchurch were doing well enough now, and he felt that the Heathcote County Council would not like to bury itself in some Power Board. "We are fairly satisfied," he said. "Malvern, Springs-Ellesmere, and Banks Peninsula may feel inclined ' to amalgamate." I A voice: Try it on the dog. , Mr Judd said if the Department could show that each Power Board would reap a benefit, there would be no objection to the scheme. Mr Maginness said the Springs-Elles-mere Power Board was after the wholesale consumers.

Mr C. E. Cross (Waimairi County Council) asked how prices would bo affected.

Mr Kissel said the Board would b© elected by the various constituent districts. but infernal administration would be the concern "of the Board, and there was no reason why prices should not be reduced. He could not sag in whai way they wftuy be

duced, however. It might be elected to keep the charges as at present. Mr Sharpe asked what would happen if the Christchurch ratepayers had a preponderance of votes, and elected not to alter the price. . Mr Kissel said he had no doubt yie residents of the City could control the Board. Mr _E. Hitchcock (manager of the Municipal Electricity Department) asked whether it was right to assupie a more economical distribution ov ® r such a large area. Apparently the Government was prepared to band over its consumers to the Power Board, but not piecemeal to the various existing authorities. He knew some of the latter were anxious to take over the consumers, and felt they were suffering an injustice by not being allowed to supply all the consumers in their area. " * Department's Direct Consumers. Mr Kissel said if the Department handed over its consumers to the local authorities it would be a case of the tail wagging the dog. The authorities were not competent to handle these consumers. He gave the following figures of revenue received from the sale of electricity by the Department last year, the first "sum in each case being that received from the authority, and the other that from the Department's direct consumers: —City Council: £64,000, £21,000; Spring-Elles-mere Power Board: £29(30, £6027; Halswell County Council: £674, £1607; Heathcote ' County Council £2676, £1096; Lyttelton Borough Council: £l4lO, £1248; Eiccarton Borough Council, £2427, £6000; Waimairi County Council: £2ll, £4510; Malvern Power Board: £IOOO, £800; the Department had no consumers in Sumner or in the Tai Tapu Dairy Company's district, and Banks Peninsula contributed its whole revenue. Mr J. Cunningham (Springs-Elles-mere Power Board) said it had been suggested that his Board should cail the conference, but it had been felt that this was not its function. If the arrangement was a bad one for the Department, it should try to terminate it itself. A comprehensive report on the whole situation should be prepared, showing the benefits which would result. It was a question of pounds, shillings, and pence to the Department, but the latter was not entitled to more than a fair share of the business. It had been getting a little more than its share, and might have to face a loss. His Board was prepared to consider taking its supply from Addmgton, _ Mr Kissel said he did not know that it was the Department's function to get a report on the whole matter. It would rather be a job for the authorities which would constitute the proposed Power Board. Handing over the Department's consumers to comparatively small local authorities would not enable a reduction of its staff. There was no doubt about the' engineering aspect, and a merger was quite feasible. Tlie existing reticulation had grown piecemeal and a modern reorganisation might effect economies Mr Sharpe moved that Mr Kissel s«PPIy the various bodies with a copy of his address, so that v it could be discussed. Mr Judd seconded the motion. He was m favour of one controlling Board he stated. . ' Amendment to Postpone Consideration. Mr Cross moved an amendment that the meeting be called 12 months hence. 0 , sa ?d the people in his district were against the merger. Mr It. Sarjeant (Riccarton Borough Council) seconded the amendment. Mr W. W. Mulholland (Malvern Power Board) said the amendment was rather drastic. Mr Agar suggested that the proposal be given serious consideration before it was dropped. Perhaps it would be better to set up a committee representative of the authorities existing at present, The-amendment was lost by a large majority, only three voting for it, and the motion was carried. Mr Hitchcock moved that it be a recommendation to the supply authorities that consideration be given to the appointment of a representative to a committee to give further attention to the matter. Mr Sharpe seconded the motion, which was carried. Mr Agar suggested that the City Council be given two representatives on the committee and the other bodies one each. Mr Kissel was accorded a vote of thanks.