Power share views sought

Ruapehu Bulletin, Volume 9, Issue 404, 17 September 1991, Page 1

Power share views sought

Waimarino customers of King Country Energy are urged to make their views on the proposed distribution of power board shares known to Trust members. Members of the Trust will be at the King Country Energy showroom in Taumarunui from 9am to 4pm on Wednesday to receive submissions on the shares issue. Local Trust representative Ian Strachan said submissions have to be at Parliament by this Friday so there is

not much time for action. He said he is available on (0658) 58 784 if anyone wants to discuss the issue. Two proposals are presently being discussed, one from the Minister of Energy John Luxton, and one in the form of a private member's bill from the Auckland Electric Power Board. The main difference between the two proposals is that the Minister's would see shares tradeable and the Auckland proposal would have shares nontradeable.

Mr Strachan said at this stage the King Country Energy Trust favours the Auckland option. He said they felt there was a danger with shares being tradeable in that it would possible for a small group of people to gain control of the power company. A maximum of 10 per cent of the shares could be owned by one person, but as few as six people could have control of a company under those rules. "If local people wish to keep local control over power prices it wiP

be important that at least a sizeable portion of the shares stay in local ownership," said Board chairman Ken Street in a press release. "The temptation to sell a piece of paper worth anywhere from $500 to $1500 will be strong." He said there will be an incentive to retain shares as a competitive dividend would be provided. "We believe the changes will facilitate competition and enable customers to have a choice of energy supTurnpage2

Power shares

From page 1 plier," said the chairman. The Board is concerned at the delay in implementing the plan which is set down as five years plus the time to pass the legislation. The Auckland Electric Power Board's bill would see a consumer trust issued at least 60 per cent of the company's shares with the rest available for private ownership. This would ensure community control of the company. With a "not insignificant" private shareholding the company would have strong commercial direction while safeguarding majority consumer ownership.