FRANKLIN ELECTRIC SCHEME.

Franklin Times, Volume 9, Issue 668, 16 September 1921, Page 5

FRANKLIN ELECTRIC SCHEME.

COUNCIL EXTENDS AREA. TO WAIUKU ELECTRICAL COMPANY. FCRTHER AGREEMENT TO BE PREPARED. The question of extending the area for the Waiuku Electrical Supply Company to operate over was brought up at Thursday's meeting of the Franklin County Council by the chairman (Cr W. Claud Motion). The matter was discussed at the Finance Committee meeting of the Council on Wednesday night, and a recommendation was adopted that it be brought forward at the ordinary meeting of the Council. The chairman set the ball rolling. He stated that when the Minister of Public Works (Hon. J. G. Coates) visited the district, he was met at Patumahoe by a deputation not in favour of the .area marked out. He suggested to Mr Coates to send one oi his engineers to the district, so lie could see for himself whether the area mentioned was not sufficiently defined from their point of view. When he was in Wellington recently he saw Mr L. Bilks (the chief electrical engineer), and discussed the scheme with hm. He pointed out that a certain section were opposed to it, and he asked if he saw anything in the agreement mentioned to take exception to, and if he could suggest in any way that the fatepavers’ interests were not protected, to'do so. Mr Birks replied: “No, he could not,” and added that it was a very good agreement, and it looked as "if the ratepayers would get an advantage very soon, because it would be a long time before they would derive a benefit from the Government scheme. His own idea was that if a Power Board was formed for the district, a loan would have to be raised and a rate struck to pay the interest and sinking fund. It was quite evident that a lot would be paying rates and would not get anv benefit under the Power Board. Under the Waiuku scheme only those who got a benefit paid. There was a clause in the agreement which compelled the Company to extend to these who wanted electric energy. They wanted someone who was a disinterested party to give an opinion on the matter. Mr Miller, of the Public Works Department, was in Auckland, and he met him at Mr Hanna’s office, and discussed the matter with him. He suggested to Mr Miller to visit the district, see for himself, and define a line which would be in the best interests to the Department. Mr Miller came up, arid went round with Mr McArthur, (County Engineer). He went away, and sent a plan of a bigger area, and it seamed that by extending the area a greater number of people were assured of getting advantages in the shortest time possible. He would move a resolution, and if the Company agreed to it, the matter would be completed on these lines. The clerk then read a copy of a lengthy letter, dated August 17th, received from the County solicitor (Mr A. Hanna), which inter alia, stated :

“By arrangement, the chairman, engineer, and clerk of the Council met Mr Miller, of the Public Works Department, in my offieg on Monday evening, August 15, 1921. The Question of the area to be included in the agreement with the Franklin .Electric Supply Company was discussed, and it was generally arranged that Mr Miller should go to Pukekohe by the 9.15 train on Tuesday morning, August 16, and that the County engineer would meet him and show him the boundaries which the Council suggested and which the Company suggested. Mr Miller called upon me on Tuesday evening and suggested the propriety of a roundtable conference, at which d representative of the Pukekohe Borough Council, a representative of the Mauku Riding, a representative of the Company, and a representative of the County Council should be present. with a view to coming to an amicable adjustment of the boundaries. Mr Miller'stated that if I could arrange such a conference he would be prepared to attend same. Mr Miller arranged to meet me at 10.30, and on Wednesday, August 17, and at this interview, he showed me a telegram which he had received from his official chief (Mr Birks) to the effect that the Public Works Department was prepared to recommend the issue of a license to the County Council for the total area already fixed and agreed upon, and that the Department would agree to any agreement or grant that the County Council might make of any portion of such area, that . is to say, the Council would be in a position to grant a portion of its area to the Franklin Electric Supply Company, and retain the balance for future use. I then suggested to Mr Miller that having been over the ground perhaps he could indicate an area for the Council to grant to the Company which could be defined by natural boundaries, and which would approximately comply with the agreement already entered into between the Council and the Company, namely, an urea of supply comprising a 6-mile radius from the Waiuku Town District. He Intimated that he would be willing to make a line including an area, which, after the information he had obtained and his inspection of the County effected, would, he thought, be an area not only suitable to the Company but also to the County. I submitted a County map showing the area edged blue, comprising the whole of Awhitu, Waipipi, Waiuku, Mauku and Pukekohe West Ridings .which will he included in the license to the Franklin County Council, and indicating in red the portion of such area which lie suggests should be included in the delegation to the Franklin Electric Supply Company.” This latter area comprised the whole of Awhitu, Waipipi and Waiuku Ridings, and parts only of Mauku and Pukekohe West Ridings, the eastern boundary of such

area being the Waiuku East and Puni Parish boundaries. “If Mr Miller’s line is adopted, this will mean that the portion of _ the County lying between the Taihiki River "and tide water, forming part of the Mauku Riding, and the portion of the County immediately surrounding the Pukekohe Borough, and including Cameron Town, and bounded by the Waikato river, will be left for any purposes the Council may subsequently decide upon. Mr Miller stated he considered Patumahoe should be included in the area to be granted to the Company, firstly, because the Company had undertaken to connect up with Patumahoe within four years, whereas the proposals of the Pukekohe Borough to Patumahoe people were of a somewhat nebulous character, and that the Pukekohe Borough would merely supply electricity in bulk up to its boundary, and the Patumahoe people would require to connect up with this boundary in order to obtain supply. This would necessitate application to the County for necessaiy permission to connect up. Patumahoe had no definite commitment whatever from Pukekohe, and they proposed to wait and see the progress the Company was making before they would again approach Pukekohe. Under these circumstances he thought that the Company s proposition was much the better one*, even for Patumahoe. I might mention, in passing, that if the Council approves of the area to be gx'anted to the , Company as suggested by Mr Miller, and agrees to forego the remainder of the proposed area to be included in its license, I do not think tne Public Works Department would offer any objection to limiting the County Council’s license accordingly. I cannot help thinking that perhaps this might be the best thing to do, except that possibly the Council might prefer to retain control over the area adioining the Pukekohe Borough, in View of a possible Power Board be- });<>■ brought into existence. This, oi course, is a matter entirely for the Council.” The latter portion of tne letter referred to the question of legal costs.. . v The chairman suggested that tne term of connecting up the whole area be three years, sc that people could yet an immediate advantage, L , the Company was prepared to accept this condition. It was all very well to talk about Power Boards. The first thing they would have to do after a Power Board was formed was to go along and Taise a loan, and with the high rate of inteiest ruling be was afraid the loan would be turned down. In this case the Company had to find the money, and the only people who' had to pay was those who derived a benefit. ’ Under the Government scheme a rate had to be struck, ■money, borrowed to erect the lines, and number of people who would be rated, would never get a benefit. It payed to buy out a going concern, and it; this was done the whole of the rate; struck need not be collected, .because from the time they took it over it would be revenue producing, whereas under a Power Board.the rate would be collected to • pay the interest on the loan, and it would be some timer before any revenue was received at all. With a going concern, and a great portion of the district linked up, the remaining portion could be linked up, and in two or three years the whole thing would be a self-sup-porting' one, and the rate struck need not be collected. In this case the Company had got to carry out the terms of the agreement, and he clearly stated that the interests of the ratepayers were protected. Mr Coates had seen a copy of the agreement, and in the Minister’s Opinion it was well drawn up, and he could see no reason why anyone took exception to it. He considered they were very lucky. He invited a free discussion on the question, and asked Councillors to ask any question, so that the whole position could be explained. Cr Woods : How far does the fine go up the hill ? The chairman: It does not go up the bill at all. . In answer to Cr Cuff, the chairman said the boundary tb be included in the Council’s license took in a portion of Buekland. The chairman said that if the district was linked up they could switch on with the Government line as soon as it went through. Provision was made in the agreement for the Company’s interets to be taken over at valuation.

Cr Wilcox said he had never heard of Buck land people wishing co join up with the scheme. Ci Cuff: If the Company.is beinggiven an area to the Borough boundaiy, why cut out Buckland ?

Cr Wilcox said that Puni was included in the area ; as far as he :pu!d see, the people included were jolly lucky indeed. He was satisfied, in his own mind, that if a Power Board was formed, to get energy from the main transmission line that the loan would be turned down, because people who never used power would have to pay a tax. The people in the district >n question, who did not use the electricity supplied by the Company, did not have to pay. Only those-,who benefitted had to pay. He reiterated his statement that they were jolly, lucky indeed. The chairman then moved the following resolution : “That this Council agrees to the area of supply to be included in proposed deed of delegation to the Franklyi Electric Supply Company being extended to include that portion of" the area over which the Public Works Department is prepared to grant the license, comprising the Awhitu, Waipipi, Waiuku, Mauku, and a portion of the Pukekohe West Ridings of the Franklin County, • provided that a further agreement is drawn up by the County solicitor and executed by the said Company, whereby the Company Undertakes to erect main transmission lines and supply electricity in accordance with the provisions of the agreement already entered into, along such roads in tne said area as shall he 1 specified in such agreement, within a period of 3 years from the date of the license, and further, provided that the Company undertakes to pay all legal costs.” > Cr Woods 'seconded the motion. Cr Wilcox said there was no doubt

the people would get power quickly. The chairman said he would like it made quite clear that he had no interests in the Company. Not a share. He was not suggesting the extension for his own benefit or to get anything out of it. This was being done in the interests of the ratepayers, so that they could get power quickly. The ratepayers’ interests had been well considered. The Council was endeavouring to conserve the interests of all concerted, and again he stated that the ratepayers were vetting every consideration possible. Cr Cuff thanked the chairman for the consideration given him. He Was a young Councillor, and it was in the interests of the ratepayers that he had objected. However, as. the Company had met ; them half way, the ratepayers of Patumahoe, he thought, would "be satisfied. The chairman remarked that there had been no hole and corner work, and there had never been any since he had been a member of the Council. Everything that had been done had been done with a clear conscience If they had made a mistake it was only for the want of knowledge. Never at any time had he the least suspicion of any such work. The Councillors had never taken sides, and had always worked and played the game together. In reply to Cr Dean, the chairman said that provision was made in the agreement for taking over the Company’s interest, but that six calender months’ hotice must be given. In reply to Cr Lowry, the chairman said that if a Power Board was formed a poll of the ratepayers would have to be taken for the purpose oi raising a loan. Under a Power Board they would have to raise a loan to take the Company’s -interests over; The district would be linked up, and from the, time it was taken over it wculd be i-evenue-producing. They may not have to collect rates after, perhaps, a couple of years. Cr Lowry claimed that the portion linked up may out-vote those who wanted the power undfer a Power Board, when the. question of a loan was. put,before, the ratepayers. The chairman said that under a Power Board cheaper light no doubt could be- obtained, and it would be in the internets of the shareholders of the Company to, sell out and take advantage of the .cheaper power. In answer to a question, the chairman stated that Hamilton and Te Awamutu were paying the same price for light as people in the Pukekohe Borough were. Cr Reid said he understood they were paying lOd at Hamilton. The chairman said that in the agreement consumers were to receive light for 9d, less Id, and power for sd. less id.' • Cr Dean said there was some agitation to consitute a Power Board. The chairman then outlined I he origin of the scheme. Some time ago, he stated, the Pukekohe'Borough had a movement on foot to extend its operations, and the County Council va 3 approached and .asked to nppoi n t delegates to,attend a conference. I his wgs done, and the proposal discussed at length, and it was decided to obtain a report on schemes with a six apcLa twelve miles radius from Pukekbhe.; People began to get interested in it, and talked amongst themselves, but the Pukekohe Borough would not go on with scheme under a Power Boai’d, which it was proposed to form, but wanted to sell the energy at a ‘price, ' This gave the people interested an opportunity'to further discuss it between themselves, and when the Waiuku scheme was mentioned they said, “Oh, yes, if you get a license we will take the power.’’ This gave an inspiration to those people to go ahead and he was approached to take shares, but did not, as he was interested in the affairs of the County. As there wa no further discussion, the motion was. put and carried unanimously. Cr Reid did not vote. Cr Woods moved and Cr Heald seconded :—“That it be left in the hands of the County chairman to confer with the County solicitor in regard to preparations of the above agreement.” —Carried. w Cr Woods moved andCr Heald seconded : “That the agreement and plan showing main transmission linos be referred to Cr Cuff (Mauku) and Cr Woods (Pukekohe West) for approval, before same is submitted to the Company.” —Carried. ,Ci Reid said that he endorse! all the chairman had said. When linked u". they wouodl be sorry they were not linked up long ago. ’ The portion of Pukekohe West Riding proposed to be included in the deed fofo delegation to the Franklin Electric Supply Company is all That area lying to the westward of the unopened road abutting on sections 71 to 78 (inclusive), the Borough boundary to the road leading from top of Pukekohe Hlil to Hooper's Road, by Hooper’s Road and by Tramway Road to the Waikato River. Mr H. E. R. L. Wily (Mauku) wrote asking the Council to give full consideration ‘to the repuests made by him on behalf of the ratepayers ot the Mauku Riding, viz., (a) That the Council undertakes the supply of electric current ipr the whole County ; (b) That,, in the event of (a) not being undertaken, the Mauku Riding be left out of the proposed irea for twelve months. The letter was received.