Power ownership still unresolved

Ruapehu Bulletin, Volume 9, Issue 409, 22 October 1991, Page 2

Power ownership still unresolved

A trend back towards community trust ownership of shares in power companies has become apparent in recent weeks, King country Energy's board has been told. Members were discussing a questionnaire they had received from Hutt Valley Energy Board seeking their opinions on the ownership question, and reconfirmed their general support for the share giveaway proposals put forward by Energy Minister John Luxton.

However, chairperson Ken Street said the board had been successful in the past because of its ability and willingness to adapt to changing circumstances. He had also seen the trend towards favouring community trusts as outlined by general manager Peter Till. "People are dead scared of price rises. They want a watchdog", Mr Street said. Bo^ird member Bill Peach said King Country Energy's customers should be canvassed for their opinions to help the board make up its mind as to what was the best option for this area. He also said people had overlooked the benefits to the economy that the share giveaway plan would provide. Secretary/treasurer Norm Annand said it seemed the municipal electricity departments (MEDs) were the only ones in the industry who did not support some form of share giveaway. Board member Tony

Palmer said it did not matter to him who owned the shares in the board, but they needed to be commercially minded. He felt the govemment was looking for a politically acceptable outcome and the whole exercise was somewhat "futile". Deputy chairperson Gordon Gower thinks the consumers are looking to the board for a guide because of the confusion that exists over industry reforms. Mr Palmer agreed, saying it was well on the cards that they will say they don't know what is the best option. "They certainly won't go for the commercial argument. They won't want that from a bar of soap". The question of ownership will be further discussed at the board retreat planned for next month.