PENAL CHARGE CUT

Greymouth Evening Star, 21 September 1946, Page 4

PENAL CHARGE CUT

OVERDUE POWER BOARD ACCOUNTS REDUCTION TO ONE PENNY Described by several members as a e “breeder of ill-will towards the board,” the penalty of twopence in the shilling imposed by the Grey Electric Power Board on accounts not paid by the due ■ date is to be reduced immediately to one penny’. A resolution to this effect was passed by the board at its monthly meeting last evening, without dissent, although previous attempts to alter the penal charge had failed. The board also decided to resume the monthly readings of meters as soon as possible. The question of a reduction in the penalty charge was introduced by Mr. P. Blanchfield, who suggested that it should be cut from 16 2-3 per cent, to 8 per cent., or from twopence to one penny in the shilling. He said that he had always urged that the charge was too big and he believed that the board should take the recommendation made by the tariff committee some time ago. He thought that the time was ripe for the board to experiment and see whether it could make a reduction to one penny. Mr. Blanchfield suggested that an investigation of the accounts, perhaps by a new tariff committee, would disclose just who were being penalised —whether it was people who were just unfortunate through forgetfulness, carelessness or temporary shortage of money, or whether there were some defaulting time after time, and just holding'back on the board. Revenue over £5OO. He felt that the position should be investigated, to see who was contributing the £5OO or £6OO a year regularly received from the penalty rate. He (Cr. Blanchfield) knew that the board did not want to augment its finances through the penalty and even if it dropped by £lOO or £2OO, it would have more satisfaction. He moved that the board set up a tariff committee to investigate fully the possibility of reducing the penalty charge to one penny in the shilling. In seconding the motion, Mr, W. E. Pring said that the penalty had always been a bugbear to him and he had been “caught” on one occasion. He thought that the charge, almost 17 per cent., was far too high, and pointed out that the Borough Council gave three days’ grace for gas accounts. Some might say that the penalty on rates was imposed on due date, but there was six months notice in that case, and reminders by advertisements. In the case of power accounts, there was only 14 days’ notice and no reminders. “This matter has been fully debated in the past,” said the chairman, Mr. J. B. Kent, “and I am going to move an amendment now that we reduce the penalty rate to one penny in the shilling.” Mr. W. McGilchrist said he did not see any reason why the decision should not be made that night. Seconding the amendment, Mr. J. Mulcare said he agreed with Mr. Blanchfield that, just because the board had a monopoly, it was foolish to incur ill-will. Personally, he had been an offender and it had left a very nasty taste. He pointed out that it was often very inconvenient for country people to pay the accounts on the due date and the penalty was a breeder of ill-will. Mr. J. Ryan supported the previous speakers. He said he had also been “caught” and he thought the rate was far too high. Mr. A. L. McKay asked whether it was proposed that the reduction should be subject to review. The chairman said he was quite satisfied that the reduction could be made. “If you are quite satisfied, I am overjoyed,” said Cr. Blanchfield. He added that, as one of the youngest members of the board, he had brought up the matter previously, and the proposal for a reduction had been defeated by a small majority. • He believed that it was necessary, to prevent a lot of trouble in the office, to have some penalty, but it was a good day in the board’s history when the rate could be reduced from 16 2-3 per cent, to 8 per cent. In the circumstances, he was pleased to withdraw his motion, in favour of the amendment. The secretary, Mr. W. S. McClymont, said he believed the ill-will would persist when, to protect himself, he was compelled to charge a man the one penny penalty. There was also the fact that the matter of collecting accounts in a time when money was not so plentiful without a little incentive had not be tried. Mr. Blanchfield: The ill-will will be cut down 100 per cent. With the withdrawal of Mr. Blanchfield’s motion, the chairman’s amendment became the motion, and was carried unanimously. Reading of Meters.

The chairman said that another thing that had been giving trouble, particularly to the smaller consumers, was the two-monthly reading of meters and he would formally move that the board revert to the onemonthly reading system as soon as possible. The motion was seconded by Mr. L. M. Downes.

In reply to a question by Mr. Mulcare as to whether the board had the necessary staff,'the chairman said he thought it would now be possible to make the change. Supporting the motion, Mr. Downes said he had had several complaints from residents in his district who had been confused by the two-iponthly reading system. The motion was carried. w, v » Charging System. • Earlier in the meeting, Mr. Downes said that under the board’s 33 rates of charges, he understood that in some cases it had four meters. In some districts, such as Rotomanu, however, the board charged on a room rate and only two meters were required. He asked whether it would be possible, from an economy point of' view, to standardise the board’s system, with, say, two meters for each consumer. He thought that such a system would mean a saving to the.board and, in the loqg run, to the consumers. 11 The engineer, Mr. S. Trotter, said he believed that the system suggested by Mr. Downes was / the better one 'but he suggested that the matter should be held over until the next financial year. The board would have to investigate some of the large consumers’ accounts, as the proposed change might cut some of them in half. Mr. McGilchrist said he agreed with the engineer. The matter would require a lot of investigation. It was easy in the country- districts where

everyone consumed about the same amount of electricity but it was difficult in Greymouth where there were small consumers taking close to the minimum and also big consumers. The board would drop a lot of revenue and would give the big consumer an advantage over a smaller one. Mr. Downes said his object was to assist the small consumer, riot the large one. , Mr. Trotter: But the law. does not allow you to discriminate. The chairman said the board had gone into the question before and had found that the proposal was going to relieve the big consumer rather than the small one, so it had been left in abeyance. / No motion was put to the meeting and members went on to discuss the penalty change. /