THE WAIROA POWER DISPUTE

Hawke's Bay Herald-Tribune, Issue 37, 27 February 1937, Page 5

THE WAIROA POWER DISPUTE

Court Reserves Decision On Board's Actiqn SUPPLY TO BOROUGH Legal argument as to whether the Wairoa Borough Council should payfor bulk electricity smpplied by^ the Wairoa Electric Power Board since January 1, 1936, at the same rate as under a contract in force np to December 31, 1935, was heard by Mr Justice Ostler in the Supreme Court at Napier this morning. His Honour reserved jttdgnient and intimated that if he caine to the conclusion that the board's price was not fair and reasonable, then the fixation of the price for the period nnder discussion could be settled by arbitration. This morning 's hearing was the s®" quel to a prolonged dispute between^ the Wairoa Power Board and the Wairoa Borough Council on the question oi what was a fair price to pay for bulkenergy supplied after the termination of an agreement between the two bodies. The board sought judgment for £557 18/1 plus interest at 5 percent, whereas the council silbmitted that a fair and reasonable price would be £359 5/9, which sum had been paid into Court, plus £10 8/- costs. The Wairoa Power Board was repre* sented by Messrs H. B. Lusk and C. R. Sainsbury (Wdiroa). Mr John O'Shea, of Wellington, appeared for the Wairoa Borough Council. A preliminary point of law was discussed between counsel and his Honouv as to whether the Wairoa Borough Council was or was not bouhd to pay the price demanded by the Power Board, and whether the price fixed by the board w&s a fair and reasoijable one. After hearing both sides, his Honour reserved his judgment on the question, intimating that if he decided against the Wairoa Power Board he would refer the matter of the price to arbitration. Mr O'Shea argued that the Power Board had a monopoly of electric power and that the Borough Council had no option but to take energy from the board, because it was not possible to obtain power from the Goyernment. Mr Lusk did not agree with this contentioh. He held that the council couljj in fact obtain power from the Government if it was not satisfied with the arrangement with the board. Mr O'Shea: lt is not for the Government to say what is a fair and reasonable price for electricity purchased. That is the function of this Court; His Honour: I don't know, but I'd say that the Minister has power to stipulate in the licences issued by the Government to power boards to sell electricity what is a fair and reasonable price. Mr O'Shea : No, the Government cannot do that. Mr Lusk: Mr O'Shea, being an Irishman, is "agin the Government." Mr O'Shea : I'm not against the Government at all. 1 say that when th© Power Board knows that the Government is not going to sell power, it thinks to itself: "We have got the council in our power." Mr Lusk: No, I protest. against that. In the course of his' submission Mr O'Shea said that the Wairoa Borough Council had never placed the whole matter before Mr Semple as Minister of Public Works. Mr-Lusk: Well, I say shamq on the Borough Council for not having done so. Mr O'Shea: I'd like to see you put something before Mr Semple when he says: -"Nq, I've heard all I want to hear." His Honour: l'm not at.all satisfied on the question whether the old contract between the board and the council should or should not be in force, and I'm afraid I have not> got Mr O'Shea' s confidence that I can establish what would be a fair and reasonable price. Mr O'Shea: Welij I'm quite prepared to have the question submitted to arbitration provided Your Honour fixes the arbitration. At thig stage his HonOur intimated that he would reserve judgment of the question of whether the board's claim was a just one and that, if his judgment was against the Power Board, he would refer the matter of a fair and reasonable price to arbitration. "I cannot give judgment before i return to Wellington," he concluded