Another Hitch

Hawke's Bay Herald-Tribune, Volume 81, Issue 23, 20 October 1937, Page 14

Another Hitch

NAPIER POWER SUPPLY Conncil May Reject Agreement with Board OMITTED PROVISIONS Though the correspondence between the two bodies suggested that - tho Napier Borough Council had accepted the terms of the agreement with the Hawke's Bay Electric Power Board for the supply of bulk electricity to the borough, the omission of certain provisions which the "borough understood to have been included may lead to the rejection of t^e agreement by the council. Negotiations have been reopened by the council to have the omissions repaired. The board adheres to its terms. At the meeting of the Power Board yesterday, Mr C. D. Cox, a member of the board and chairman of the borougn electricity committee, indicated that provisions regarding price Teduetions nad been omitted from the council 's letter a>s the result of a misunderstanding. The discussion arose from a letter from the council stating that it had distinctly understood that the board would allow £250 a year Teduetion in the charges for bulk power if the board 's litigation on loans domiciled overseas suc-ceeded. It had been understood, too, that the board would pass on to the council a proportion of the saving effected by any reduction in Government charges. The letter stated that the council would renew the contract only on sueh conditions. It was stated by the board 's secre-tary-manager, Mr H. H. Wylie, that the provisions mentioned had been cohtained in a proposal rejected by the council at the initial negotiations between the two bodies for the supply renewal. The council had countered by asking for a reduction of 2/6 per k.v.'a. per qharter for each k.v.a. in excess of 2000 per quarter supplied. and this had been accepted by the board. Correspondence on the subject was read showing the council 's acceptance of the latter offer. While admitting that this appeared in the correspondence, Mr Cox said that the electricity committee had been quite certain that the other two provisions were included. The provision in regard to the £250 had been very nn-> certain, as it had appeared that the case would go against the reduction oi interest on overseas loans, but he felt that it was quite reasonable that any reduction made by the Government should benefit the council as well as the board. He addcd that the letter was the result of a misunderstanding by the towm clerk. Mr W. Harvey: I don't think our committeee would have agreed to that. Mr "Wylie: The correspondence definitely says that the council did nor accept that, and makes another offer. Mr Cox: There is nothing vsrong as far as the Power Board is concerned, but it has been messed up at the council end. There is no doubt about that. The board passed a Tesolution deeiding to agree to its previous decision.