POWER BOARD RATES.

Auckland Star, Volume LVIII, Issue 276, 22 November 1927, Page 3

POWER BOARD RATES.

IMPORTANT CLASSIFICATION PROVISION. NEW DEPRECIATION CLAUSES. (By Telegraph. — Parliamentary Reporter.) WELLINGTON, this da v. The most important new clause in the Amendment of the Electric Power Boards Act, introduced by Governor*! Message in the House to-night, relates to the powers of boards to levy rates to meet deficiencies in revenue. The clause is lengthv, and provides that a board may, if it thinks fit, levy a special rate, upon a graduated scale, according to the degree of benefit which they consider the various parts of their districts have received as a result of their operation*. Ratable properties may be classified into such number of classes as is deemed necessary, and before fixing proportion# of rates payable in respect of each class, the board shall give public notice and allow 2S days for consideration of objections. Any person aggrieved by the classification may appeal. One ground of objection specified in the clause being that the rate proposed is not in accordance with the benefit received, or likely to be received, from the expenditure in respect to which the rate is levied. Appeals are to be heard by a magistrate, wnose decision is final. The board may amend classification on giving two months' notice and reopening power to appeal.

The Minuter of Public Works, on jntroduci.-i-r ihe bill, stated that, except for three dauses, the proposals had been submitted to the executive of the Power Boards Association and approved. The bill contains a large number of machinery provisions. It brings into line with other local bodies the more liberal provisions regarding disqualification of members for being interested in contracts. It empowers boards to suspend sinking fund payments, subject to conditions imposed by* the Local Government Board, it the revenues of the undertaking are insufficient to meet working expenses, interest, and depreciation charges. Boards are given power to appoint Depreciation Fund Commissioners. who shall take charge of depreciation funds, and they may appoint the Public Trustee as sole sinking fund commissioner. Demands may be made on the fund for replacements of plant, and the Commissioners are entitled to secure independent expert advice of the necessity for payment. They mar appeal to the Supreme Court to decide whether payment shall be made. The Commissioners may advance monev from the fund for extensions of existing works. Boards are empowered to establish reserve funds, and may pav reasonable costs of elections of members. Their power to include an area of an outer area in their district is extended if the power board cf the adjoining area agrees.