NEW POLICY.

Auckland Star, Volume LXVI, Issue 170, 20 July 1935, Page 10

NEW POLICY.

POWER CONSUMERS.

SUPPLY OF APPLIANCES

HIRE AND HIRE-PURCHASE.

Proposals for the hire of electric stoves and the hire-purchase of stoves and water-heaters will he placed before a meeting of the Auckland Electric Power Board on Monday. The scheme

1. The board to embark on a policy of hire of electric stoves, to be contracted to specification, and purchased by tender.

•2. To adopt a policy of hire-purchase of electric stoves and water-heaters of approved make and design, sold by or through the trade.

3. Free electrical installation by the board for all approved electric stoves and water-heaters installed after a date to be determined.

4. Electrical installation to be carried out by the trade by tender and quotation, arid to the board's specification.

5. The amounts to be charged for hire to be determined by the board on receipt of tenders, and in accordance with the examples given in tlie reports.

G. That the board shall maintain the stoves and water-heaters for live years according to the conditions set out in the reports, the necessary materials being purchased through the trade.

General Trading Not Intended. "The board has never considered, nor has it any intention of entering into, trading in the true sense of the v.'o.'d," said Mr. S. J. Harbutt, deputy-chairman of the board, this morning. "The statements so far published in the Press are entirely misleading and create a wrongimpression. Under these conditions, I must express surprise that the 'Star' should see fit to prejudge a policy and a body of responsible men without the full facts of the case before it. These facts could not be made available, as they still remain in the committee stages, but I feel it is opportune that I should brieflv outline them.

"First, I wish to correct the statement which implies that this board does not pay its full rates and taxes. As a matter of fact it is questionable whether this board is not one of the largest taxpayers in this city. It pays every form of tax, even on cables and poles erected on the streets, and including sales tax on the goods it purchases. It, however, does not pay income tax and for a very good reason. Quite unlike company organisations, it operates on debenture capital and is called upon to provide for the repayment of this capital within specified periods by annual payments to sinking funds. Its object is not to make profits, but to pass on for the benefit of its consumers and ratepayers any surplus which its operation produces, by way of reductions in charges as the result of any surplus it may have. There is no organisation in this Dominion, and for that matter, elsewhere, from what I can gather, which is doing so much in this direction, and the much discussed question of income tax charges is quite beside the point, as, if these were imposed, it would simply mean, that the consumers and ratepayers as a whole would have to pay them.

Helping Consumers."An organisation of this sort has another obligation. It is established with the sole purpose of providing the cheapest and most efficient service to its consumers, and it does not need much consideration to ascertain that the majority of the people are not obtaining the maximum of benefits that an electricity supply can afford, for the simple reason that they themselves are unable to purchase the necessary appliances to enable them to enjoy these benefits. It is for this reason, and this reason alone, that the board feels that it must do something to enable this section of the community to enjoy the privileges of an electricity supply, which are rightly theirs.

"Furthermore, in endeavouring to bring this position about, the board has gone out of its way to give the fullest consideration and protection to the electrical traders and merchants.

"I trust that a full realisation of the facts made known to the public will result in a proper understanding of the board's aims and objects. It has not been the policy of the board at any time to ride roughshod over any section of the community, and it has no intention of doing so now. It has conferred with the trade and taken its members into its confidence in all matters relating to .this scheme. It should be of interest to'the public to know that a substantial majority of the trade is supporting the board in its contentions."