Board balks at cable rental

Ruapehu Bulletin, Volume 8, Issue 374, 19 February 1991, Page 3

Board balks at cable rental

King Country Energy Board directors have objected strongly to a proposal by the Department of Conservation (DoC ) to charge a rental determined by the turnover generated by the new Turoa Skifield connection.

DoC has asked that the board pay 1.75% of its turnover from Turoa per year as a rental for the use of land on which the connecting cable runs as well as ensuring an easement agreement is reached to allow access to the cable. Mr Till estimates this would cost the board about $3500 per year, and more when use expands or when electricity tariffs rise. Board member Tony Palmers said he was against the proposal in principle. "I cannot accept a system where rental is based on usage. In a normal rental system

you offer a fixed rate and then review it every three years." After much discussion the board decided to offer DoC a rental of $3500, to be paid for a term of three years at which point it would be reviewed. "We should try and think like DoC. They want some form of trickle fed income and I don't blame them for that. I think we should pay them a fixed rental of $3500 each year and review it after three years," he said. Mr Till said a similar system is already in operation whereby Turoa Skifield pays DoC a

rental for the land they used based on income. This, he said was fair as more people put more pressure on the National Park in which the mountain is situated, and there should be compensation for this. "A cable will not, however, put more pressure on the park as more power is used," said Mr Till Kit Wilson said he agreed with Mr Palmer's comments that it is the principle of the rental which is the issue and the board should offer to pay a fixed amount of $3500 for three years and then review the situation. Mr Wilson also suggested the board offer a one-off payment to reflect the cost of setting up the cable though this was discussed but not adopted. Gordon Gower asked what legal right DoC

have to impose such a rental. "The national Park is for the people and we are helping to encourage people to use it," said Mr Gower. "They are a National Park and they can do anything they like," said Mr Till. He said the board is not being charged for running cables to the Whakapapa skifield.