MEMBERS’ CRITICISM

Dominion, Volume 28, Issue 226, 21 June 1935, Page 7

MEMBERS’ CRITICISM

Administrative Costs of Electric Power Board MR. ANDREWS IS OUTSPOKEN Outspoken criticism of the board’s “steadily increasing administrative costs,” particularly in relation to the salaries of the staff, was made by Mr. J. AV. Andrews at the meeting of the Hutt Valley Electric Power Board yesterday. The discussion arose out of proposals of the engineer and general manager, Mr. E. F. Hollands, which were to be discussed in committee. Mr. Andrews, however, said he wished to speak on one clause of the report ,in open meeting, which prompted Mr. A. J. McCurdy to remark, “So the Press can report what he says.” “That is not fair,” some members declared. ■: . . -f .- J, When permission was granted Mr. Andrews to epeak in open board he said the outstanding feature of the-recent balance sheets was that the board was steadily increasing its administrative costs each year, while its revenue receipts had been steadily falling. /'lt was a noticeable fact that no attempt was being made to check the adverse ratio this year. Each meeting held had seen further additions to the overheat}: costs, when the board’s whole energies should be concentrated on reductions, and consequential easing of the burdens on consumers. The management salaries and wages had advanced from £5907/19/- in 1932-33 to £6769 in 1934-35, and the revenue: receipts had dropped from £99,704 in 193233 to £97,577 in 1934-35. Salaries were 5.925 per cent, of the receipts in 193233 and 7.233 per cent, in 1954-35/ “If the board adopts ’the gemral manager’s proposals they will oe ove. nine per cent, for this year. That is a terrific administrative overhead for a merely distributing concern,” Mr. Andrews said. 1/ The Pruning Knife. The board's rates were higher than those of any other power authority, of its size in New Zealand, and could be reduced appreciably if the members took the pruning knife and did What their positions as trustees surely demanded of them. All the cuts to the staff had been restored and now the board was further increasing salaries for no additional work, and giving extra holidays .on full pay. “Our total contribution toward the solution of the "problem of the equal distribution of wealth is to give more to those who already have much at the expense of those who have too little.” he said. “I venture to say there is no other group in this community as well off as the employees of this board. The money we splash around, thereby creating the impression we are good fellows, is. in a large measure, extracted from people who are on or below the bread and butter line.” “We are budding up.” he continued “an army of salaried officers at from £6 to £2O a week and increasing their holidays on full pay until ultimately it seems we wi|l be having to pay for additional double tiine if we ask them to work at all. and all of this is at the: expense of the consumer. ' “Do the consumers know that when .the board proposes to increase slightly the discount it increases the rate by a little more than the extra discount and thus .increases the net charge by. something, and the gross charge by a heap more, putting the greatest burden of the increase on the poorest section of the community. those who often cannot pay by the due date, and are then charged penalties? • -■ • ; ' : . “We Bluff the People.” ■ • “We. bluff the people about the huge: discount we have returned after we have added mor' 1 than the discount to the charge.” Referring to the wages of the staff, Mr. Andrews said the board’s carpenter, for instance, was paid at the rate of 2/6 an hour, wet or fine, holidays and all in, which equalled 2/8 an hour for working time. The blacksmith got the same. “All of these gross over-payments, which are economically unsound, are added burdens on every industry in the board’s area, and are partially l the cause of the non-recovery or 1 the retarded recovery of prosperity, and have a definite bearing on the poverty and degradation of the relief workers and others who are suffering equally with the relief workers, because the charges are too high. “Do the consumers know that the board ha» constructed tennis courts on valuable land for the board's, staff and that thp consumers are paying for these luxuries?” he asked. ?“Do the consumers realise that they have been paying 4/a month minimum charge for meter rent, and are now going to pay 3/-. whereas the Auckland board’s charges are now 1/-?” The board occupied a sheltered position with thousands of pounds of deposit money paid at the rate of 10/- a meter in advance by every consumer, and then in an orgry of continual extravagance piled on the straw that eventually breaks the backs of those consumers. The people who were up against it were going to feel very hurt indeed when they found that instead of receiving some benefit from the increase of discounts they were actually paying more, both gross and net, for water heating after going to the expense of installations. In the board’s area any profits made; were largely dissipated among a few only and those few were the most favoured in .the community. Pill with no Sugar-Coating. “I wonder,” Mr. Andrews went on, “how many consumers ever realise that members of this board drew over £413 a» fees and expenses in 1933, and over £445 last year, while members of the city, borough, and county councils who give ten tunes the amount of time to their jobs, do everything g-atuitously? “The general manager places on the estimates £6OO for further increases of pay to members of the staff who are comparatively well paid, and wo are expected to swallow the pill without any sugarcoating, and let the users of electricity pay. These are my views and I would be false to myself and the consumers I represent and unfitted to occupy my place on the board if I did not dare to express Mr.. • Andrews, moved that- the chairman, or in the event of the chairman being ill, his deputy, Mr. Blackley, Mr. G. London and himself should constitute a committee with instructions to investigate overhead costs. In seconding the motion Mr. London said he felt the employees should not be in a better position than their employers, the consumers. ~ . Mr. L. Stewart said he would, support

the motion, but lie would like to be on the committee himself, because he had always taken a close interest in the staff, the consumers, and the board generally. Air. Andrews said be was prepared to agree to that and incorporate the suggestion in his motion.

Mr. 8. Blackley said he appreciated what had been said, and mentioned that he had opposed an increased honorarium for the chairman and also the extra holidays to the outside staff. “AVe seem to be going on adding to the overhead expenses year by year, and the staff seems to consider we have not bad a depression in New Zealand at all,” he said. Air. P. Dowse, who said he was disappointed with Mr. Andrews for stealing a march.on the members, contended that if a committee were being set up it was not right for each board member to discuss the problems. A halt should be called in the administration charges, contended Mr. J. Maher, until the consumer had a “whack.” The staff had been well treated, and there was a limit. He supported Air. Andrews.

Air. Stewart pointed out that the staff were paying to the board at least £8 a year for -the tennis courts. Air. Andrews said he would not suggest that the employees would not pay the money, A’.voice: That was your inference! As an amendment Air. Dowse niovod that the personnel of the committee should be chosen by the board and not by an individual. Air. A. Walker seconded the amendment. The board had one of the most efficient staffs in New Zealand, and he did not bold -with the opinion that the men had reached a limit in wages. The tnen on the outside staff were doing good work, under the supervision of an able manager. The speeches being made were more for propaganda than for the consumers. Tie was a supporter of paying the men commensurate with their ability and the capacity of the board to pay. The board was not paying its employees too much. The amendment was lost and Air. Andrews's motion was carried.