NON-CONSUMERS’ RATE.

Hauraki Plains Gazette, Volume XXXVI, Issue 4818, 4 March 1925, Page 2

NON-CONSUMERS’ RATE.

THE POSITION OF PAEROA. DISCUSSION BY BOARD. At yesterday’s meeting of the Thames Valley Power Board at Te Aroha the following correspondence in connection with the levying of the non-consumers’ rate in Paeroa was read: — The Engineer-in-Chief, Public Works Department,, wrote as under: “I understand that at Paeroa a deputation from the Paeroa Borough Council and Ohinemuri County Council pointed out to the Hon. Minister for Lands that when the poll was taken there was no .suggestion of such a thing as a non-consumers' rate in connection with electrical works. It was stated that the rate was forty per cent, greater than the hospital and charitable aid rate, and the privately owned gasworks in the town had been closed down on.account of the noncorsumers’ rate. They contended that, electricity at that cost to the community was economically unsound, and, further, that your board refused to sell in bulk. They suggested as a fair proposition that if there was a loss in the reticulated area everyone in the area should help to share the burden . I would be glad of your board’s full comments on the above statements. Will you please state if the facts are as stated, and what objection there is to the rate being struck over the whole reticulated area.”

The following reply, forwarded by thy manager, was'read and approved :

"1 have to acknowledge receipt of your letter with reference to Paeroa Borough and the non-consumers’ rate. It would seem that the facts have not been put fairly to the Hon. Minister, and a wrong impression has been given. When the original poll was taken in 1920 no suggestion could be made of the non-consumers’ rate, .is that method of rating was only made possible by amending legislation of 1923. Before the last loan poll was taken for £125,000 the board decided to strike this rate, and its intention was noted in the public press, andthe chairman in his loan poll tour definitely stated the board’s intention in this direction. Paeroa was included in the tour, and the subject of this rate was discussed with the Mayor of Pae>-oa (Mr W. Marshall), who was the chief speaker at the recent deputation to the Minister for Lands. Paeroa voted in favour of the loan.

. “The contention that the Paeroa gasworks have been, shut down owing to this rate is not correct. The company had only 230 consumers, and was in liquidation some time prior to the striking of the rate. The enclosed circular issued by the Paeroa Borough Council indicates the position with reference <o the gasworks.

“The rate is struck all over the reticulated area, and operates on eacii pronerty within ten chanis of. a line. Each ratepayer is entitled to electricity free to the amount of the rate.

‘1 am of the opinion that the real ground for objection is the minimum amount charged under the rate, namely, £l, which certainly bears heavily on small sections of low rateable value, of which Paeroa has quite a number. My board has no discretion in this, respect, and has represented the matter at the Power Boards’ Conference, which approved of a remit reducing the minimum rate to ss. As there were no amendments .to the Po.wer Boards Act last session the higher amount is still in force.

“With reference to selling elec tricity to Paeroa in bulk, this town has no license, and has been reticulated by my board as it is included in the board’s license. The Borough Council made an inquiry with reference to the cost of its reticulation, with a view to purchasing same. The bond’s advisers did not consider it would be wise to. encourage, a number of small town reticulations, so the board declined to sell. Paeroa would make a substantial annual loss, or would need to sell to its consumers at a much higher rate' than now charged by the board if it undertook its own retailing of bulk current, as it is not likely to secure the essential diversity within the borough boundaries,”

. Mr Flatt said that the reply was a reasonably fair one with the exception of supplying power in bulk. He moved • “That further to the reply to. the letter, that the board at its meeting this day is agreed that there are some real grievances. under the Act, and is satisfied that as it exists Paeroa has a real grievance,, and that Cabinet should be asked .to bring down amending legislation,; and that it be made retrospective.”

Mr Flatt said that it was necessary, in his opinion, that the inequalities should be sheeted home to the Cabinet. There was a lot of feeling on th" matter, and he would ask thas the Paeroa people be backed up in their contention that the position was unfair.

Mr Thomas said that the matter had already been dealt with. Paeroa was not the only place to have a grievance, although Mr Flatt would have the board believe it was.

Mr Fiatt said .that there was no repetition of the matter so far as Cabinet was concerned.

The chairman pointed out that the ground would be fully covered when the remits at the Power Boards’ Conference were discussed. •Mr Flatt contended that such remits might never reach Cabinet, and he considered that the Minister should receive the objections direct from the board.

Mr Price was opposed to backing up the protest bf Paeroa. He said the department already knew of existing anomalies. -

Mr Flatt said it was apparent that anything coming from Paeroa was resented by the board. Paeroa had been alive enough to object to the anomalies and point them out to the boar i, but tho board would extend no sympathy.

The chairman objected to Mr FlaltV remarks, and pointed out that Paeroa

had not awakened until December last

The resolution lapsed for want of a seconder.

Mr Price suggested that the depaivment be asked to submit copies of the legislation pertaining to the non-con-sumers’ rate. n n the motion of Mr Flatt it was agreed to forward a copy of the letter; together with the manager’s report, direct to the Minister.

Mr Flatt then gave notice of the following resolution : — "That in view of the injustice that .oiild be inflicted upon many consumers and non-consumers under the Ad as it now exists, the further operation and collection of the availability rate be deferred until the Power Boards’ Conference and the House of Rei resentatives have had an opportunity of reviewing the position.” in support of the resolution Mr Fl-itt said that the idea he had was brought about by a number of compla’nts concerning the inequalities of the rate received from Paeroa. The large number of anomalies were well known to the board, but many peaule realised that they might be calle 1 upon to pay the rate, at the same ume knowing it was a hardship and unfairThe board was not asked to give way under the resolution, but.the deferriiur of action was earnestly sought. Dealing specifically with Paeroa, Mr FTitt quoted a number of instances wh-'re distinct hardship would occur through the levying of the rate. He said that the board was not short of money, and he thought that ample time should be given to enable Cabinet to go into the matter, and that extreme measures should not be taken by the board at present. The chairman said it was realised by the board that Mr Flatt had put up a very solid and sound case, and until such time as the House and the Power Boards’ Conference had had an oppor 7 trinity of further going into the whole question he would suggest that the treasurer should, not take court proceedings againsj; any person for not paying the rate .without explicit instructions from the whole of the board. He was confident that amending legislation would be forthcoming, but he was doubtful if the matter would be made retrospective. Mr Flatt said that that resolution would cover the ground, and he was prepared to accept it in place of nis own proposal. Mr Thomas objected to the chairman's resolution. .

Alt- Anderson said that a large majority of people would fail to pay the rate.

Mr Price said he was prepared to sunport the resolution as amended, as it would give the board an opportunity to deal with each case on its merits, and where cases of hardship were shown through the operation of the Act such cases would receive, consideration’ until the House met. In his opinion the resolution was only asking for the consideration that would be shown by any ordinary local body.

Messrs Strange, Grace, and Pohlen spoke against the resolution, which, on being put, was declared lost bn a showing of hands. Mr Flatt asked that his vote be recorded.

A resolution was moved by Mr J. Price, and seconded by Mr Flatt, that the engineers go into the question of giving townspeople a continuous cooking and hot water service on a flat rate basis similar to that at present operating on farming areas. The resolution was carried. Mr Flatt drew the chairman’s attention to section 4' of the Act, pointing out that, in his opinion, holdings no! in use or occupation could not be legally rated. The chairman disagreed with the contention, but • suggested that the boc'd ascertain the legal position.