AN ALTERNATIVE SCHEME.

Hawera Star, Volume XLVII, 19 September 1928, Page 4

AN ALTERNATIVE SCHEME.

(To the Editor.) Sir, —I will not trespass on your space to the extent of enlarging on all of the comments of “K.V.A.” I think that my letter was plain enough for most of your readers to understand, and I cannot see where any. of the statements that I have made are incorrect, except the majority required to carry a, poll, which is three-fifths instead of three-fourths. Your correspondent infers that I am endeavouring to assist the Electric Light Company (peg a point). In this he is mistaken. I am endeavouring to prevent the ratepayers of this area from getting into the inevitable position of the ratepayers under most other power boards. Reference to my letter of August 28 will bear this out. Further, so. far as I know, I was the first to move in the direction of a power board being .formed in South Taranaki. Immediately on the poll being carried in the adjoining district, of which we were an, outer area, I got a' few of our leading, citizens together, among whom were two members of the Hawera Borough Council, Messrs. Bone and Osborne, and put our serious position befoi’e them. I am working now, as I was working then, to protect myself, and this being a community affair we have all to protect one another. My desire is that all ratepayers should know as much, as possible when the time to vote arrives. I will outline the scheme I have in mind* for our mutual protection. I am of the opinion that we should have cheaper light and power, and l from the profits shown by the Electric Light Company I think that if they were approached in a proper manner i with a workable scheme we would have cheaper current without taking on any risks and without having to run the business ourselves. In' the first place, I assume that the shareholders of the company are men of business, and if they sold out would be looking for investment for their capital. They cannot expect more than the ruling rate of interest without taking risks. By retaining their present business they would' not risk anything. The next is to get down to a basis of profits allowable. From assertions made through your columns by board 1 members, we gather that they would like to see a considerable amount more reticulation work done. This work can he outlined and the cost estimated. With this cost added to the arbitration price of the company’s assets, and a fair interest and depreciation allowed, it should not be difficult to arrange the prices'to be charged for current. The Power Board could give the company a license to operate for a period at fixed prices for current, and those prices to be reviewed periodically. A clause in the license would place us in the same position as we are to-day: if at the end of the period a suitable agreement as to the price to be charged for current could not be agreed- upon, the board to have the right to purchase the undertaking of the company at a pftce to be ascertained- by arbitration, or at the present arbitration price, plus the extra cost of further reticulation. To clear -the. air as between, statements made, by “K.V.A.” and myself, I would thank the Electric Light Company, if it is not too much to expect., to answer the following: What is the average monthly payment of country users of light and power? and what is the payment of the average users of light-, etc., in Ha wera ?

What are the net charges of the Electric Light Company for current for your different classes of service? I would further suggest to “K.V.A."’ that the hourly running charges, or should I say hourly charges, are not principally the cost of labour, but the interest, depreciation, and sinking fund on plant, etc., of a capacity to handle the peak load of the day. In this suggestion I may be wrong, as I have no figures on this subject. Possibly the Electric Light Comapny will enlighten us' on this matter also. Thanking you for space. —I am, etc., G. W. GANE.