POWER BOARD MATTERS.

Hawera Star, Volume XLVII, 22 November 1927, Page 2

POWER BOARD MATTERS.

A DEPUTATION WANTS INFORMATION.

THE CHAIRMAN ELUCIDATES

Yesterday’s meeting oi the Taranaki Electric .Power iioaiii was waited upon t>y a deputation of about 20 ratepayers representing practically the wnoie or the board's area, who were desirous of obtaining information on the board s worlung methods. jVir. M. Marchant, of Cardiff, on behalf of the deputation, put a number of leading questions, and these weie answered by the chairman (Mr. H. G. Ear mail) and members of the stall (Messrs. W. J. Tristram, 13. 11. Goldsmith and L. H. Jardine). Mr. Marchant .said the deputation was not imbued with a spirit of hostility though the members thereof considered they had ample cause tor complaint. They might be critical, but ror that attitude tne board must- be held responsible. He referred, to the paucity of information supplied to the ratepayers by tiie Press, and wished to know if the newspapers were to blame in that respect or H a good proportion of the board’s business is transacted in committee. The searching nature of the questions might be distasteful to the board, but the ratepayers wished to maintain their confidence m the board and at the same time learn the worst so far as they themselves were concerned. . „ , , The chairman explained that when a deputation waited on the board it was not the usual procedure to enter into a discussion on the subject matter ; questions could be asked and duly considered and answered. Mr. Marchant took the responsibility for the proper conduct of the deputation, and imt the following questions and received the replies appended: Were all the board’s meetings 8-pen to the Press"?—All meetings were open to the Press and public, but matters affecting private individuals were taken in committee. What is the total cost of the scheme to date? —The amount of loan money available is made known to the Press at each meeting of the board. The loan money expended to date totals £451,000. ‘Of 'this amount £17,000 represented stocks and £9OOO advances to consumers. There was still £9OOO of the last loan unexpended. 'Was the board advised by Government engineers that the scheme would probably cost a great deal more than, the board’s estimate? —No report on the cost of the scheme was submitted by any Government officer. ' Were the engineers paid on the full cost of the scheme, notwithstanding that their estimate was _ enormously exceeded? If so, why did not the board test the legality of the position ? —The scheme was Mr. Climie’s discovery, and it was mutually agreed from the outset that he should he the consulting engineer if the scheme was proceeded with. Was everv contract fully considered by the board ?—All contracts were duly considered and made by the board. Was every member of the staff qualified for the position held ?—So far as the chairman knew, each member of the staff was fully qualified. What was the cost of the board’s building; is it in excess of the engineer’s estimate? Does the hoard draw rent from other organisations which have headquarters in the buildings?—The building and land cost £9370. Mr. Tristram, by arrangement with the board, paid £IOO per annum rent for use of the building. Who was responsible for poles and other material left lying on roads which have been long completed?—lt is considered more economical to leave the material where it is than to remove it to a central depot. In the event of an extension in the same locality—a frequent occurrence —the material is already at hand. Is the boai - d aware of extensive threatened litigation?—ln previous cases of threatened litigation satisfactory agreements had- been arrived at by arbitration, in the majority of instances, at much under the claims. "When would the- ratepayers -see the balance-sheet?—The balance-sheets for 1926 and 1927 were ready for audit. Details of unaudited balance-sheets could not he published. The Governmotn Audit Department is responsible for the delay. How is the board elected ? There is a current belief that members of the board are appointed by local bodies, and not elected.—All members of the board are elected by the ratepayers; extraordinary vacancies occurring are filled by appointment. In reply to a request for information in regard to the available rate, the chairman said the -rate would continue until increased consumption of power made it unnecessary. No provision was made for payment of the rate by instalments—like a county rate, it must be paid in full. A period of three years was al owed for payments for installations. He had already prepared the follow-in-o- report for presentation to the board before he- was aware thn.t a denotation was to he received- It coni',ained answers to some of the questions

put by the deputation, and its publication would enlighten ratepayer© generally. The report, as read by the clerk, was as follows: THE CHAIRMAN’S REPORT. “During the three weeks following the last meeting of the board, when notice was given of intention to strike an availability rate of twopence in the pound on the: capital value, I have received inquiries irom a number of ratepayers regarding method of rating and tin 3. reason for striking this, particular form of rate, and have been informed of a number of incorrect statements in circulation. “I think the publication of an official statement by the board would bo appreciated by a number of ratepayers »vho are anxious to understand matters, mu .at the same time counteract certain malicious statements that are being ndustno us I y ci rcul a ted.

“At thp annual meeting held in Ma3’ last, the estimates for the year were adopted, showing estimated expenditure £40,000. of which £30,184 was required for interest and sinking funds on loans, the balance being published in the newspapers at the time. Sale of current, which for the previous r we’ve months produced £14,003, was estimated at £20,000, leaving £20,000 to bo provided for. “Two methods’ of rating were carefully considered by the hoard. First, a.' general rate over the whole of the district, whether served by trtinsmission lines or not. Second, an availability rato which is chargeable only

against properties within ten chains of one board’s supply lines and is limited co a maximum charge of £3O on any one property and a minimum of 10s. livery ratepayer lias the right of receiving current for use on the property rated "during the 12 months: for which one rate is struck (Ist April, 192/, to 51st March, 1928) up to the rated amount, without further payment. Jioi instance a ratepayer called upon to pay a , rate of £25 who uses and pays for t 23 forth of current during the twelve months, would pay the balance of £- under the rate. If 'he used £2/ worth tie would pay for the current and no rate. If lire uses no current at he would have to pay the full rate of £2o. Whatever amount is called for by rate, whether 10s up to £3O, the ,same pnncipe applies- „ , . v , “The main reason lor deciding upon the availability rate was the fact that under this method every ratepayer may, if he wishes, by using sufficient current, avoid paying the rate, while under a general rate there would be no inducement for ratepayers to become consumers and such a rate would probabiv be necessary for some years. “This board’s action appears to be justified bv the fact that for the seven months which have elapsed since this method of rating was decided upon, the number of applications foi installations has been more than doubt 3 the number for the previous twelve months, while during the three weeks since the last meeting when notice of rate was given, applications hare eim«b. rattan rolls bv the officials of the various counties and boroughs concerned took some considerable time. M hen the figures, were finally made up it was found that a rate of twopence would produce £30,000, one of threepence 000 It was evident from these fbnires that any increase in the. rate above twopence would fji]l entirely on the smaller holdings- The board therefore decided to strike a rate of twopence in the pound on the capital value, and to borrow by bank overdraft any deficiency over the amount received 'in payment for current and rates such deficiency being estimated at about £6OOO. This amount under the Act can be carried forward for a period not exceeding three years as accumu°should be ]X>inted out that although the rate is calculated to produce £30.000, as each ratepayer wall deduct the amount w’hich he has paid during the year for surrent consumed the sum actually collected as rate will be considerably less than £30,000, pr bably little more than halt than anl “One .statement circulated is that the necessity for the present rate is due to the fact that the actual cost of the headworks and generating plant has greatly exceeded the estimate. The fact that £40,000 is required thus year as against the original estimate of £3B 000, quoted on page 18 of tlie booklet issued in connection with the original loan proposals, makes it clear that it is the lack of support which has caused the estimated difioiency of £20,000 This deficit would still have been £lB 000 that is only £2OOO fleas had the additional expenditure not been necessary. Had the same proportion of ratepayers who voted for the soenuulcr of the money taken full advantage of "the service which that money has provided, there would be no rate toRate payers generally, and especially those who so far have not connected up with the supply, should realise that they are shareholders in the undertaking. that the power board district was created bv petition of ratepayers for their benefit, the power developed and lines erected for their use, and that the sooner they join up and take power, so much sooner wall the undertaking become a payable one and the necessity for a rate disappear. I am certain that the present- revenue can be doubled as soon as ratepayers make up tlieir minds that the undertaking belongs to them, and that they must do their best to make it not merely a payable, but a highly profitable proposition, thus enabling the hoard to reduce charges for current. This can quickly be done by every ratepayer who can possibly do so making full use of the current which has been made available. Mr. Carman added that there would always be liability for the rate until such time as the revenue derived from .sale of current justified its extinction. He could not say when that w’ould he. Mr Marchant thanked the board for the courtesy extended to the deputation, to whom many points had been made clear.