ELECTRIC POWER BOARDS

Evening Post, Volume CXV, Issue 121, 25 May 1933, Page 5

ELECTRIC POWER BOARDS

(To the Editor.) Sir,-—ln your issue of Friday, May 19, appeared the following statement by Mr. S. Blackley, retiring chairman of the Hutt \Valley Power Board:— . ". . ; -When we hear of cliques on power boards, urged- by parochial sentiments, seriously discussing the possibility of removing power board offices, etc., from one town to another, it is surely time some change should be made to, prevent such, scandalous waste of ratepayers' money. As the Manawatu-Oroua Power Board, of which I,am a member, is, to my knowledge, the only power board: that has had the removal of its offices, etc., under corsideration, I take it-that Mr. Blackley is referring to what he understands to be the position in this area. . If so, he is making public statements about matters on which his own knowledge is, to feaythc least, decidedly limited. His statement that the discussion re shifting the omces, etc, was urged by parochial sentiments, ill becomes a member and retiring chairman of a power board, when referring to the action of another board whose members know its position at least a little better than he does. ■ The position is this: The ManawatuOroua Power Board has decided that it will be an economical advantage to transfer its garage, workshop, and storeroom to Feilding. This' is something rather different from parochial sentiment. In my opinion parochial sentiment loomed much more prominently When the present offices, storerooms, etc., were purchased in Palmerston North at a cost of over £10,000. Just what were the reasons of the board members, who then held, office, for sanctioning this purchase,, or whether they made any attempt to base their reasons on economic facts, Ido not know. lam rather inclined to think that no such attempt was made, otherwise they surely would have seen their error. In the first place, Palmerston North is not anywhere near the centre of the toard's area. This is revealed by the fact that, out of 36 towns and districts in the area, 24 are nearer to Feilding than to Palmerston North, so it will be. seen that the shifting of the storeroom, garage, etc., to Feilding will save a. lot of unnecessary milage. Then we have the fact that, while Palmerston North gets its electricity at cost from the ' board, •it is sold back to the board for use in its Palmerston North offices at retail, prices; whereas, if these offices, etc., were anywhere else in the board's area, their needs, in this respect, could be supplied at Cost. ■•■■•. But the fact that Palmerston North City Council is supplied by the board with electricity at the same price. as the Power Board pays the Government has a ■ mote far-reaching and serious effect, than loading the board with unnecessary cost for the light it uses. It means that, although Palmertson North City takes the whole of its supply from the. boardj using its own plant merely to cut an occasional peak load, it pays nothing towards the cost and upkeep of the phuH. which distributes the supply. The only charge, other than the wholesale cost of the electricity, is £800 service charge, which ; barely covers the interest and maintenance on the lines which supply the city. These Were erected at a cost of £8000, so when interest,'depreciation, and sinking fund on this amount are taken into consideration, it will be realised that very little, .if anything in the way of profit is left for the board. With the exception of this £800 service charge, all the expenses entailed in the distribution of the supply from Bunnythorpe substation, are collected from the consumers in Feilding and the country districts. It will be realised to what extent this half of the consumers of the board's supply are unfairly taxed when it is considered that the interest alone last year amounted to over £27,000; and in the light of this, Mr. Blackley's reference to the shifting ot offices, etc., as a scandalous waste of ratepayers' money surely fades into insiguiiicance. But I do agree with Mr. Blackley that our Government hydro-electric department is too much of a watertight compartment. Appeals have been made to the Government at different times regarding the unfair method of distribution existing in this area; but the results have only convinced me that, if we wish to remedy the position, we, as a board.; must work out our own salvation.—l am, etc.. P.O.GUY. Feilding, May:2l. «■'•