Power Plant Sale

Hawke's Bay Herald-Tribune, Issue 26, 15 February 1937, Page 6

Power Plant Sale

HAVELOCK TERMS Outstanding Loan Liability to be Taken Over LOWER SUPPLY TARIFF Detaiis of the prbposed sale of the Havelock North Town Board electrical undertaking to the Hawke's Bay Electric Power Board are now available in a statement issued to-day by the chaiiuiau of the Town Board, Mr H. R. von Dadelszen. The purchase price ia to be the outstanding loan liability of tne Town Board 's £10,500 redemption loan, and an xmportant benefit to Havelock North power consumers will be a reduction in tariff. "The Power Board is purcliasing the whole of the electric undertaking; the price is to be the Town Board 's outstanding loan liability in respect of the £10,500 redemption loan at the date of taking over," states Mr von Dadelszen. "The Havelock North town district is to become part of the inner-area ox the Hawke's Bay Electric Power Board, and the Town . Board is to have such representation on the Power Board as may be fixed by Order-in-Council. "The Havelock North Town Board is unanimously of opinion that a sale should be made at the amount mea tioned above, fo'r the foilowing reasoUS:-r~ "(1/ Tlie Power Board undertakes to reduce the present retail tariffs to tho same as the Power Board country tariff within six months of taking over. " (2) The Power Board country tariff is 15 per cent. below the present Town Board tariff, and is likely to be further reduced in the near future. "(3) It is estimated that if a sale i» made at the figure quoted the Town Board general rate will be increased by £d in the £; as against this, however, it 'is estimated that fully 75 per cent. of the ratepayers would etill benefit financially after that rate was- added. "(4) The Power Board is prepared to xnstal ranges on terms; no deposit is required, and purchase price is to be paid off at from 8/- a month. The rango to be wired free of cost to the consumer. "(5) The Power Board is prepared to instal water-heating serviees without extra cost to the consumer for an automatie time switch. "(6) The Town Board will be appointed a cash receiving office, and aCeounts may be paid at the board 'a office as usual. " (7) It is the intention of the Power Board to continue to use the Marae totara plant, with a double throw switch for the purpose of switching on to

Government current in the event of an interruption in supply. .