POWER AND LIGHT

Evening Star, Issue 15916, 23 September 1915, Page 7

POWER AND LIGHT

THE SELLING POLICY. HOW WAIPORI PAYS. The Electric Power and' Lighting Cbm-, raittee’s report, submitted to the City Council last night, contained important matter bearing upon the selling policy of the department. The committee announced that with a view to submitting a definite proposal regarding the totes for power for consideration by the Council, ah instruction -had been forwarded to the electrical engineer in the following terms; To submit a revision of the rules and regulations governing the use of electrical energy on such lines as will enable the department to utilise the present installation to the fullest advantage, such revision to be based oh the following considerations—i.e., (a.) an annual payment by the department to the municipal fund of an amount equal to 1 • per cent, on the total loan capital; (b) the continuation of payments to both sinking and renewal funds at the present rates; (c) all sinking fund payments to be calculated on the original amount of loans until such time as the loans or any remaining portion of the same shall have been fully paid off. Cr Shaddock, in moving the adoption- of this report, said that the department was in a position to show a substantial profit on the working of the present plant. He' had already suggested in a minute that certain anomalies existed, and that the rules should be revised. But first the committee wanted the council to say whether the council wished the department to pay more than 1 per cent- to the municipal fund. (Personally, he thought the council had already adopted that figure, and should adhere to it. So far as sinking fund was concerned, this was largely a question of how much the council expected those who had to pay for plant and enterprise to pay, and how much was to be left to the future. Notwithstanding war pay (wliich now amounted to £525 per year) the working expenses this year would be rather less than those of last year. So far as the war had gone they _ had kept below the estimate of expenditure. The income, too, showed a substantial increase, and he was hopeful that at the end of this year a profit of £B,OOO would be shown, and that with the present plant these profits could be verv substantially increased with certain modifications of the plant. If this report went through, the committee would bring down the revised rules. Cr Douglas seconded. Cr Wilson thought that the council should look to this department for more than 1 per cent.—not more than 1 per cent, for the_ municipal fnnd, but another 1 per cent, dn reserve for extension purposes. He would move an amendmentthat a sub-clauso (d) bs added, setting forth that 1 per cent- on the capital invested be set aside for an extension fund.

Or Col© seconded. Now was the time to build up such a fund. Cr Sinclair thought the. whole matter should ho referred to the Finance Committee, because the revision of charges on one department would involve the revision of the position of other departments, lb© City s total capital outlay on the four trading departments was £1,169,970, and tee total amount they contributed to the general account in relief of rate® was £15,266, made up in this way:— Gas department, £I,OBO • water ‘department £7,8y6; tramways £1.500; electric department, £4,7901 'if the council Were to consider now and decide that the electric power department was to contribute, the same amount as before, the council must at once consider the position of the other trading departments to the general fund. I ersonalJy, ho thought they should contribute more all round, and that the time was also opportune for a revising of the standing cnarges of the tradiim department® They were not getting enough prom Irani the trading departments. The renewal account of the electric department was as high as £42,729, and it was within ins knowledge as a. member of til© committee that it was felt that some of the renewal -charges were too high. Or Hayward did not agree” with Cr Sinclair in respect to this department, for it was encouraging manufacturers a vital thing in civic enterprise. It would not be fair to lay down a rule that every department should pav so much to a general account. Cr Begg said tne manufacturers had been getting their power too cheap. He knew of one linn which had; saved £BOO a year m coal since Waipori was taken in X-iow many new manufactories had arisen since the council started to bolster up the manufacturers? Not one of importance. Nor had there been *auy relief to consumers. Ihe whole profit was made by the manufacturers. His idea was that the council should have sufficient revenue from this department, from the gas department, etc., to make the City as free from rates as possible. That was the way to use t,.eir sin-pluses. This department had been bolstered up for eight years, and it was time it showed a decent profit. The gas department had for years been the milch cow of the corporation, but now it was making nothing, and sooner or later that department would have to enter into competition with the electric power department That would be unfortunate, and u the electric department were put upon a proper footing as to charges, itcould not happen. Cr Scott said he'hoped the electric department would never come down to a point of robbing the public the, way the gas department had. He hoped the electric department would continue to foster manufacturing, which was the big asset of this town, which had no ba-c-k country. Cr Black said that this last statement alone stamped Or iteoit’s ivaur®s as nonsense. Otago had plenty of back comivl g as department had never robbed the people. What they had been doing was helping to keep the electric power department going. Manufacturers were getting abnormal benefits. The few, in fact, were getting the benefit at the expense of the many. He would like to see thoin at any rate hold the whole matter up till nesti meeting. Cr Green said that the debate was a waste of time, because the report showed that the matter would have to be considered again. All he wanted to see was the department on a sounder basis, without penalising manufacturers—present and to come.

The Mayor : The principle will not come up again. The scale of charges by which the sum of money required will have to be raised is now before you. Cr Shaddock (in reply) said that some councillors were not inclined to lie fair when Waipori was mentioned. To his mind the departnlent in eight years had dorle what less enterprising companies of the class had not succeeded in doing in 15 years—namely, make a profit. It) was in a position to show profit on the plant, as it existed, and he would) not Be surprised if they could realise the £15,000 profit with the present plant that the Town; Clerk said the department should. If this department was asked to set aside 1 per cent, for extensions, why should not the tramways, department be asked to do the samh? With £IO,OOO profit, nearly £6,C00 would be available for capital extefisions, and as far as 1 sinking funds were concerned, he thought that the council Should revise the method of paying sinking fmids, so that the whole loan Would be paid off in a reasonable time—not 200 years, as at present. He showed how the loans could bej paid off iri 65 years. As to renewal funds, the department had proved that they paid in enough for renewal. The main thing in this fund was for batteries (whose life was short); and the tender accepted for one such the other day would be paid oiit Of fehe'whl ftihd. How could councillors say that power was too cheap when there were people using other means with electric motors lying handyAs to hanging the matter up for a fortnight, that would be unsatisfactory. They already hadi applications for power with which they could not deal until the question was. settled. , Or Wilson’s - amendment was. lost, the only councillors voting for it being Crs Cole i Wilson* Black, and Green*.-

■ ] Carroll moved as a further, amendment—“ That clause Ibe deleted, and the Finance Committee be Instructed to report on the standing charges of the trading departments, and also as to the amount which each department should contribute to the municipal account,-and that in the meantime the committee suspend obtaining from the electrical engineer the proposed revision of the rules and regulations governing the tike of electrical energy.” ■This was not seconded, and the committee’s report was thereafter adopted .without further discussion.