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$215M surplus not ‘profit’

PA Wellington The Electricity Division’s $215 million surplus last year should not be seen as “profit” as it was needed to finance existing and planned development, said the Minister of Energy, Mr Tizard. He was commenting on suggestions that a 25 per cent increase in the bulk charges due on April 1 should be reduced. It was crucial that the public realised the division needed a surplus to finance its developments, otherwise the money would have to be borrowed on the open market, said Mr Tizard. “At current rates of interest, the debt stored up for future generations would be horrendous, and the 25 per cent increase for this year would pale by comparison,” he said.

The $215 million surplus as a percentage of total sales was "very close” to previous years sales. The April increase would mean that charges would for the first time in years be geared to meeting the cost of the capital used, he said.

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/CHP19850313.2.104

Bibliographic details

Press, 13 March 1985, Page 22

Word Count
163

$215M surplus not ‘profit’ Press, 13 March 1985, Page 22

$215M surplus not ‘profit’ Press, 13 March 1985, Page 22