Hint of dearer power
Because of indications that future loan money available to the Christchurch Municipal Electricity Department might be substantially reduced, the department had a financial problem which was being studied now, Mr G. D. Hattaway, chairman of the electricity committee, reported to the City Council last evening.
The department must either:
1. Defer capital expenditure by approximately onethird; 2. Increase electricity tariffs to cover full capital costs; or 3. Introduce a combination of both alternatives.
On the deferment of expenditure, Cr Hattaway said that at this stage, because of the curtailment of capital expenditure that had already taken place, it was doubtful whether much further saving could be achieved. For several years the proportion of capital expenditure financed from revenue had been approximately twothirds and from loan onethird, he said. Recent loan issues had shown that the present interest rates were unattractive to thfe investor. The result had been that a considerable portion of each loan had had to be met by the underwriters.
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Bibliographic details
Press, Volume CXI, Issue 32639, 22 June 1971, Page 18
Word Count
166Hint of dearer power Press, Volume CXI, Issue 32639, 22 June 1971, Page 18
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