QUESTION OF DEPRECIATION

Dominion, Volume 21, Issue 191, 15 May 1928, Page 12

QUESTION OF DEPRECIATION

REPORT TO POWER BOARD. Palmerston North, May 14. “I have already called the board’s attention to the amount of depreciation we are called upon to provide annually,” said Mr. J. A. Nash, M.P., chairman of the Manawatu-Oroua Power Board, in his annual report "presented to' the board meeting to-day. “This year,” he said, “the amount is shown as £4BlB, and in my opinion this is manifestly unfair. It must not be forgotten that in all our construction, only the best of material has been used. It is quite safe to estimate the life of the poles at 25 years—and in this the Audit Department concur. Some boards have used bluegum poles, which have a short life, and they will have a less depreciation to find owing to the reduced capital cost.” While the board was not called upon to pay any depreciation for another four years, making seven in all, continued the chairman, and even if then unable to meet the full amount of the total debit, an annual payment of onefourteenth of the accumulated amount per annum, until it was extinguished, would have to be made, aud added to this also would be the annual depreciation of, say, £5OOO to find. Mr. Nash did not think that the Power Boards’ Association would submit to this. He sugested that a remit be sent , to this year’s conference of the association.

As there was a surplus of £1657, Mr. Nash recommended that £lOOO be paid into the depreciation fund.