Arbitration wanted on direct power proposal

Press, 25 January 1986, Page 6

Arbitration wanted on direct power proposal

PA Wellington The Government has been asked to put its proposal for direct supply of electricity, to selected industries, before an independent arbitrator. The Minister of Energy, Mr Tizard, has offered direct power supply to the Hawkes’s Bay Carter Oji Kokusaku Pan Pacific and Karioi Winstone-Samsung pulp mills.

If the offer was accepted, the Electricity Division of the Ministry of Energy would have five large direct consumers, as it already supplies New Zealand Steel, Comalco, and Tasman Pulp and Paper. Direct supply policy was part of the Government’s June Budget last year. The call for independent arbitration on the issue was made by the

chairman of the King Country Electric Power, Board, *Mr Ken Maidens, whose supply area includes the Winstone mill. He said three major points came into the issue. “The matter is .political. The Minister of Finance is desperate for income so he proposes to tax the Post Office profits. The next proposal is to form the Electricity Division of the Ministry of Energy into a corporation so it may also be taxed,” he said.

“The power authorities, at present non-profit bodies, may then be formed into another corporation (controlled from Wellington) and in turn made subject to tax.”

Mr Maidens said the working man could eventually pay tax on his wages, on bulk supply of his electricity, on direct

supply of electricity and in addition GST when it is implemented.

“If my board’s action in 1 fighting the Government. ’ brings this deplorable ■'* state to the notice of the public of New Zealand, I '-' then it will have been 8 worthwhile,” he said. ’

Mr Maidens said his - ) board and’ the Govern- j ment were on a collision: * course over the proposal. > .1

“In December last in 4 the Ministry of Energy’s .j office and in conjunction - t with Hawkes Bay Electric 5 Power Board, we re- a quested the Ministry to T take the matter of direct supply to independent ar- ( bitration.

“There were horrified j cries of ’no no minister* ’ from his bureaucratic ad- * visers,” Mr Maidens said. }