AGREEMENT REACHED

Sun (Auckland), Volume II, Issue 510, 13 November 1928, Page 12

AGREEMENT REACHED

POWER CHARGES FOR TRAMWAYS

18,000,000-UNIT BASIS

in future the charges for electric power against the city tramways wili be based upon a minimum anmr>| consumption of 18,000,000 units. j Q the event of the consumption failing below this figure the onus wifi upon the power board to arrive at the actual cost of power supplied and to charge accordingly.

This decision was agreed up on »t yesterday’s meeting of the Auckland Power Board when representatives of the council, including the Mayor, Mr G. Baildon, and the chairman of the Tramways Committe, Mr. J. a. c Allum, waited upon the board to reach an agreement, following on lengthv negotiations between the two bodies Mr. Allum said the deputation was not in a position to commit the council definitely, any arrangement being subject to the council’s approval. y e did not think it was possible for the council to guarantee to consume 18,000,000 units a year. It would be better for the two bodies to come to some agreement whereby the tramways would pay for 18,000.000 uniis and if the consumption fell consider ably below that mark, a readjustment could be made, or the settling of a fair charge could be submitted to arbitration.

The chairman. Mr. W. J. Holdsworth said the guarantee asked was not excessive. There was always the danger that tramway transport would be supplanted by some other method in which case the board would be left with a lot of additional plant which had been specially Installed to meet tramway demands. Mr. J. Stanton, city solicitor, said the pact would be binding with the new Transport Board which would take over all the City Council’s assets, liabilities and obligations in regard to tramways. After some further discussion it was agreed that the Power Board’s proposal be accepted as a basis for future negotiations.