Bolger reassures rural power users

Ruapehu Bulletin, Volume 7, Issue 346, 31 July 1990, Page 3

Bolger reassures rural power users

Rural families need not fear huge power increases as a result of the King Country Electric Power Board being forced to levy the cost of supply where it falls.

That's what Leader of the Opposition Jim Bolger told King Country Electric Power Board members when he attended a special board meeting as King County MP last Friday. Mr Bolger said the National Party's full energy policy was still some 3-4 weeks away, but his view was that power boards must retain the right to equalise power prices in their own areas if that's what they thought was the sensible thing to do. "If electricity profits are to be spent for community good, one of the best means of spending the profits would be to make sure people can afford power in the first place" Mr Bolger said. "That must be a higher priority than any thing else they could do." In commenting on electricity reforms generally, Mr Bolger said National was not opposed to separating the transmission and generation areas but under no circumstances should control of these "strategic assets" be allowed to pass out of New Zealand hands.

His party had no intention of privatising the electricity industry in the immediate future but could not rule out discussion on this at a later date. Chairman Ken Street said his board was keen to know how National would handle appointments to the proposed new power companies, with indications at the moment that present board members would become trustees and a whole new set of directors would be appointed to deal with policy decisions. Under such a structure the valuable knowledge built up over many years by existing board members would be lost, Mr Street said. Mr Bolger said National was not contemplating a two-tier structure although the precise detail had yet to be worked out. It was possible board would be half elected and half appointed to ensure they had the requisite broad base skills required in a much more competitive environment. He undertook to delve more deeply into a reported call for nominations of both trustees and directors by Sir Peter

Elworthy, who was appointed by the Government to oversee the transition process. "One would think that if you've got trustees they would appoint directors, but you must wonder at the logic of a two tier system. "I don't think you should flog power consumers to make profits to hand on to a third body to dish out. That's just another form of local taxation."