POWER BOARD RATES

Evening Star, Issue 20591, 17 September 1930, Page 8

POWER BOARD RATES

CHAIRMAN'S STATEMENT

At yesterday’s meeting of the Otago Power [Board, the Chairman (Mr 1). Boyd) said that on the board’s behalf ho had been compelled to decline an invitation from the secretary of the Milton branch of tho Otago Farmers’ Union to attend a meeting which was being held in Milton that night to discuss Power Board business. Just how much matter it was proposed to discuss, said Mr Boyd, he did not know, but he felt it his duty to call consumers’ attention to the experts’ report, which stated that all must work enthusiastically together for the common good. If that desirable state of affairs could be established, much might be done to improve the present adverse position, but if lack of confidence in the board continued, the results must be increasingly disastrous. One cotir tentious matter that would no doubt be discussed was that of rating. Apparently the two chief speakers at the meeting were still advocates of the flat rate.' Apparently a lot of southern area ratepayers were under the imprest sion that the northern district was getting off more lightly than they were. He wondered if they realised that the northern district was and had been paying in rates a higher percentage ol the capital expended in that district than was tho case in the south.

In 1929-30 the capital expended in the northern area was £82,000, and tho rates £2,813, or 3.43 per cent, of the capital, and the capital expenditure in the southern area was £138,000, the rates being £4,629, or 3.35 per cent, of the capital. This year tho capital expenditure in the northern area was, say, £82,000, and the rates £4,353, of 5.3 per cent, of the capital; whereas the capital to be expended in the south; efn area was, say,. £138,000. and the rates £6,410, or 4.64 per cent, of tho capital. If, however, the Government sanctioned the rebate of . rates the position would be that whilst capital expenditure would bo the same, the rates in the northern area would be £8,329, or 4.06 per cent, of the capital, and in the southern area £4,896, or 3.6 per cent, of the capital. The actual rate was a matter dependent upon the valuations, which, being different in the different areas; resulted in a variation of the amount of rates that had to be levied.

On this matter, he thought it opportune to state that they had had some small discussion with the _ Southland Power Board representatives, and shortly hoped to confer with them, chiefly on this matter Their idea and that of the Otago Board was that some practical _ manner of rating on the “ availability ” system was the most equitable way that a power bpiird could rate. Under this system power must first be available before any rate could be collectedho sum in excess of, £3O could be obtained! by way of rating from any, one property, and the board must be prepared to, supply electricity at its current, scale of charges equivalent to the amoiint of rates. Consequently. if a consumer was giving the board £25 per year in revenue and his rating ' did not exceed £25, then he would pay, no rate. - ' He mentioned this matter to suggest that a much better service would be’bestowed on the .board and its ratepayers if such a meeting as was being held that evening would consider the necessity for 00-oporation and give the board its support to such an idea of rating—a system directly contrary to the idea of flat rating.^ The chairman’s action in declining the imitation was approved.