K.V.A.” AND RATEPAYERS ASSOCIATION.

Hawera Star, Volume XLIX, 18 July 1929, Page 4

K.V.A.” AND RATEPAYERS ASSOCIATION.

(To the Editor.)

Sir, —So “K.V.A.” has- returned to the attack. In his letter published last evening lie poses as a humorist. One cannot help wondering Avhether “K.V.A.’s” attempt at humour is not somewhat like the small boy Avhistling by might in the cemetery to keep his spirits um. Thinking ratepayers, whether in favour of the proposed Power Board . pundhase or against it, will agree that the setting up of the Ratepayers’ Association is a very useful moA'e at this .stage because one cannot help feeling a certain amount of doubt l-egarding the Ai’jiole proposal.

In the first place the undertaking for Which the Board offered £67,QUO without preliminary expenses, law costs, etc., will cost the Board over £133,000. Preliminary expenses, in addition to this, are already £IO,OOO. Again at the arbitration proceedings tile Board’s engineer is reported to have said that the Halwera Electric Company charged excessive rates for current. The engineer was on oath when he stated this in evidence. Yet the Board has officially announced that there will bo no reduction in the price of current if the purchase eventuates. In last evening’s paper I notice that his Worship the Mayor of Hawera, who is also a member of the Board, in reply to ai question at the last Borough Council meeting a,s to how the rate collected in this district for the, Board had been spent, stated that he did not think the council lor enquiring ha d seen the figures or ever would. In view of these facts the only conclusion one can reach is that a Ratepayers’ Association not only is necessary, but is perhaips even overdue. —I am, etc., ’ WATCHDOG. POWER LOAN PROPOSAL. (To the Editor.) Sir, —Permit me 1 to congratulate the enterprising persons who have had sufficient public spirit to form a Ratepayers’ Association to investigate the Power Board’s claims. From some of the observations made at the inaugural meeting it would seem that the Power Board views with some surprise and distress the formation of this association, when actually if their case l is as strong as members of the board would wish us to believe it is they should be pleased at the opportunity of having their policy examined. The truth of the matter, 1 would venture to say, is that numbers of asser-| tions made by the Power Board from J the commencement of the negotiations» right down to the present, time have created in the minds of numbers of thinking people a good deal of wonder- | ment and alarm.

Mr Baccy at the ratepayers’ meeting stated quite blandly that the offer of £67,000 was made "simply for the purpose of causing a breach and j enabling the Power Board to go l to arbitration. As I understand the position. the company’s statute which gave the board power to purchase contemplated arbitration as a last resort, and this, I suggest, would have been the desire of the jreople had they been consulted. It now turns out, however, that the Power Board made no attempt to offer a price anywhere near the real value of the company’s undertaking, and thus made no concrete effort to effect a private purchase, with the result that the Power Board on its own figures 'has spent £6500, and I assume that the company has spent just as much, if not more. The expenditure by the company, just as much as by the Power Board, represents a loss to the 1 people of Taranaki of over £12,000. But the position is worse than that, because Air Bone stated definitely in the newspaper ■when fhe offer of £67,000 was made that the price had been carefully considered by fhe board’s’ experts, and . was an eminently fair and reasonable I price. This it would seem, if Air Pac-ey’s admission is correct, was not I tli-e ease, and the ratepayers were hoodwinked into believing that the board was doing everything it could to effect a private settlement. Is it any wonder then that people who understand business deals should view with ( alarm the acceptance without demur i of the policy of a hoard which in the past has shown so little real business acumen?

Now, coming to the board’s policy. Air Bone hopes for a revenue of £33,000 or an increase in revenue over that of the company of about £6OOO. In order to get that increased revenue an annual exoenditure of approximately £31.000 is* stated to lie necessary, leaving a very small margin for unforeseen circumstances, even assuming they get the revenue they expect. The company, on the other hand, with a revenue of £26,000, makes an annual profit of approximately £OOOO after setting aside a liberal fund for depreciation of the assets On Air Bone’s own figures, then, we find in order to get this additional £700!) gross revenue the whole of the £OOOO profits disappears. Moreover, in the estimate of expenditure Air Bone slates that he has .allowed the same amount for general running expenses as that, shown to have been expended by the company, whereas Air Baccy quite frankly admitted at, the ratepayers’ meeting that they would need to spend more to collect more, and this is surelv obvious, as a power board with a ’£'2oo.ooo capita! "cannot hope to he run for the same annual cost as an £BO,OOO concern.

In conclusion. I would say that in view of tlie spirited way the company opposed the Power Board at the arbitration 1 fully expected that the 00111panv would continue to fight the .board no to the poll. Instead of that it has offered no resistance whatever. Ihe ratepayers- would do well to consider the question ol why is the company making no effort to retain its undertaking. Surelv the answer must he that it - recognises that it is getting a wonderful price- for its undertaking, including a- huge sum for goodwill, and is sittiii"' with open lap for the plum to droo into it. — \ am, etc.. SPOTLIGHT.