POWER BOARD

Evening Star, Issue 21116, 31 May 1932, Page 14

POWER BOARD

SPECIAL MEETING The special meeting of the Otago Electric Bower Board was concluded yesterday afternoon. Air A. E. Bussell was in the chair. Jfc was decided to approach the various county councils with the request that they reconsider their decision not to accept, less than 5 per cent, commission for collecting the board’s rates. It was also decided to communicate with those councils which had consented to reduce their charges and express the hoard's thanks. AVA LLABILITY KATE. The report of the Executive Committee on the availability was taken, and Mr C. 11. Smith expressed himself as being strongly opposed to the present system of rating. In the past three years £31,181 had been levied in rates, yet despite this the board had been losing approximately £IO,OOO a year during that period. Its total losses during it's history amounted £56,654. What was required was an increase in population and more manufacturing concerns to buy power, but if this did not eventuate, which was almost inevitable, the board would have to take stock of its position. The board bad committed a grave blunder nine years ago when it had introduced the system without due consideration of the revenue to be derived. He suggested that if the ratepayers could take out the total value of rates and electricity charges in power they would at least bo getting something for their money. As the hoard was now commencing a new three-year term, the time was opportune for members to go thoroughly into the matter. The Chairman said that board had to raise a certain amount of money for its commitments by the sale of electricity and by rates. If the sales decreased tlie rates would necessarily have to bo increased. The only alternative to asking ratepayers to take current was to force them to do so, which he was reluctant to do. They had certainly come to a stage when they had seriously to consider what policy to adopt to place the board in a sound financial position. The available rating system had as an advantage a guaranteed increase in power consumption, and this from the board’s point of view was a very desirable thing, as the value of the power consumed per ratepayer was £3 per year below the dominion average. If the consumption declined, or remained constant as it did last .year, there would be no alternative but to increase Hie rate. Mr Michelle said that he did not see hew’ an availability rate would benefit the hoard if it was forced on the ratepayers, who could not afford the present rate. The Secretary stated that the Executive Committee had considered the proposal to adopt the availability rating svstom very thoroughly, and it had been decided to communicate with the Marlborough Power Board, which had adopted the system, for its advice i the matter. A reply had been received that the secretary of the northern board would be in Dunedin on June 8 and 9, and would be pleased to confer with the Otago Board in the matter. The Executive Committee’s action w’as endorsed, and it was decided that a special meeting, to which the members of the executive of the flamers’ Union, the hoard’s ratepayers, and members of the Southland Power Board 'would he invited, be held on Juno 9, when the matter would be discussed with the secretary of the Marlborough Board. ESTIMATES. The estimates for the year .very considered item by item, and were amended slightly and adopted. It was decided that a notice be advertised that rates would bo struck a the next meeting on June 21. The rates proposed were:--Northern area, a total of .5 ponce m the £, instead of .65 pence in the £ last year, and the reduction would be equal to £770; in the southern area the rates were .625 pence in the £, instead of 7d as last year, the reduction equalling £533. Owing to the unfavourable position ot the Lawrence area accounts, it was not possible to reduce the rates below* last yeai s fio-uro of .75 pence in the £. It was decided that the Owaka and Mamototo general rate should remain as last year at .05 pence in the £. Ihe adoption ot the availability rating system might have an effect on the above decision, but action could be taken to make any alteration before the striking of the A telegram was received from the Auditor-General stating that a discount of 5 per cent, on the payment ot rates could be allowed only if paid before the expiration of thirty days after the demand. Therefore the board’s proposal to give a cash discount up to March 20 could not legally he adopted. GENERAL. The board went into committee, :u.d considered the position of each member of the staff. Various adjustments were made. , . , . The engineer was authorised to nave the main line telephones put into a state of efficiency and to arrange for frequent patrols of the main lines. The Maniototo members (Messrs T. Lewis and A. M’Kinnon) were granted leave of absence for six months. An agreement was entered into whereby no matters affecting the Maniototo area would ho discussed except in the presence of the Maniototo members, who would receive notice to attend. The reason for this action was that tho members wished to curtail tho expenses chargeable to the district for journeys to Dunedin. • , , , r , v A letter was received from Mr W. Taine thanking the board for tho motion concerning his past endeavours on behalf of the Iward. Ho intimated that tho Waikouaiti County Council had decided to reinstal five street lights each at Karitanc and Warrington. — It was decided to thank Air Taine tor his efforts.