TO TRADE OR NOT?

Evening Post, Volume CV, Issue 146, 22 June 1928, Page 10

TO TRADE OR NOT?

HUTT POWER BOARD'S POSITION \ LARGE' I'UND AVAILABLE \ / . Whether it was advisable for the Hutt Valley Electric Power Board to commence and carry on a trade in electrical apparatus, particularly rauges, was the subject of some discussion at the,meeting of the board yesterday. The question arose when the board was called upon to decide what should be done with a balance of; £.14,830 0s 5d standing to the credit of a-loan account. This money could only bo utilised for the purposes set out in the second section of the loan proposal, which was as follows: —Financial assistance to consumers, provision for,purchase and installations under sections 90 and 88 of the Electric Power Boards Act, 1918. Sections 90 and 88 of the Act quoted above refer to the board carrying out installation work and trading. The balance in hand at any period could not be used for construction work, but only for financing consumers. There were two ways, however, in which it might be utilised temporarily:—-(1) By investment at fixed deposit; (2) by being used to pay the amount set apart for the depreciation fund for investment with the Public Trustee and adjusted prior to 31st March by a payment from the power fund account. Mr. A. Anderson suggested that the board should obtain information on the subject of trading in electrical appliances by power boards. The Petone and Lower Hutt Gas Board carried on a splendid trade in ranges with their consumers. "Why should not this bQard do the same? With this My. L. Stewart agreed. He thought the time was opportune for the board to consider seriously the question of trading. To eachMionsumer who in : stalled a rango the board paid £3 to- J wards the cost of wiring. If the board indented ranges it would save at least £6 to each person who bought a range. The board could make" a profit, popularise the use of ranges, and at the samo time sell current. . < The chairman (Mr. W. H. P. Barber), however, gave it as his opinion that the best time for trading had gone by. ''I don't think the old board thought that the business would grow as -it has," he said. "If we had gone in for trading early it might have been wise, but now it is overdone, and a lot of tradespeople are going bankrupt." He also pointed out: that the board would have to keep a fairly large stock, and would incur display and supervision expenses. > Mr. A. J. Hobbs raised the point that 'as the board has been selling current as fast :ts it is available it would be doing wrong in pushing the sale beyond the limit of supply. Until the Waikaremoana scheme was put into operation there would be a shortage of current. Ho was of the opinion, therefore, that the board should invest the surplus money. Mr. A. Walker said that the board was there for the best sale of current, and while competition was keen he was sure that all the ranges that could be had boon installed. By reason of the competition of traders the board could not give such a great reductipn. He did not think that they should carry on a trade in ranges. Here Mr. Anderson pointed out that his idea was to get information on the 'subject, not1 that they should start trading immediately. He also pointed out that the bogy of power shortage never came up when it was a question of supplying quarry and tunnel works. In this contention ho was supported by Mr. Stewart. •It was eventually decided, on the1 motion of Mr. A. J. Hobbs, that the money should be invested in accordance with clause 2, and that in the meantime a report should be obtained showing the effect of trading as adopted by other power boards. ■ !