POWER BOARD SCHEME

Hawera Star, Volume LI, 10 December 1931, Page 6

POWER BOARD SCHEME

SUPPLY TO OUTER AREA I LOAN TOR EXTENSION MOKOIA RESIDENTS’ SUPPORT. Twenty ratepayers from the Aiolcoia and surrounding districts were present at the Alokoia Hall last evening to hear details of the scheme for raising the loan of £40,0u0 by the South Taranaki Power Board to give light and power to the southern area. Mr D. Richardson was voted to the chair and briefly introduced Air J. B. Alurdocii, chairman of the board, who would explain the board’s! proposals. 11l opening, Ivir Alurdocii said that the loan proposed was to reticulate the area fully, giving power and light as required, but it was recognised that in the sparsely populated areas in the back country it would be years before it was needed, if ever, and these areas Aver© mot included in the proposal. Included in th© scheme was a provision for financial assistance to those who needed help in the cost of installation. 'The loan was estimated on a basis of 5£ per cent., and if the board obtained the money at a cheaper rate it tvould be all to the good. Air Alurdoch stressed the fact- that the settlers would incur no liability other than for that proportion of the loan used to reticulate their own roads. The basis of the security t-o lenders was 343-lOOOths of a penny in the £, a much cheaper proposition than that of the Waimate West area, Avhere _the | amount given as security was 588lOOOths of a penny. As each line had to be self supporting before it ivas erected there was no possibility of a rate ever being collected, a bogey that had been raised by a few, but proved beyond all doubt to be groundless. Continuing, Air Alurdocii said that the loan would be for 26 years, with a sinking fund of 2 per cent., invested with the Public Trustee, which in that period would wipe off the loan. It would be entirely for district wants. Referring to the board’s financial position, he added that the board in the last two years had put the sum of £23.000 to reserves in liquid securities, and of these t!he ratepayers Avouid get the benefit. In addition money had been set aside for depreciation in case of need for the rebuilding of lines. There were many roads to reticulate said Air Alurdocii, and all the settlers had to bear was the service line from the road to their houses or sheds. At Manutahi, he added, it ivas stated by a speaker that the average cost would be £IOO to £l5O, but in Waimate West the cost aim-aged from £ls to £6O, Avith a few up to £IOO where a big farmer had sei-erai houses and sheds to connect. The statement made about the average cost ivas quite incorrect and it depended actually on how far the installation ivas from the road. The board gave a chain free for lighting, another chain if a range were installed, and another chain if a milking motor Avere put in, making three chains in all free. On Avhatever amount ivas raised there y-ould be no interest payable for the first year out of the loan, and the settlers ivould also derive a material benefit from the profits made in other districts. The board asked only authority to raise money on behalf of the settlers, but would raise none until they signed up in order to see how many wanted connections made.

In reply to Mr. C. J. Hawken, Air. Alurdoch said that or light could be taken to His place, giving one, two or three chains free. The main line went along the Alain South Road. In regard to the road to the beach, he said nothing was paid until after the first chain, but from there onwards the full cost Avouid be paid. The engineer, in reply to a question, said the cost liad AA-orked out at about £2 per chain for power to sheds and £1 15s for light. If a settler supplied his oavii poles the cost Avouid be less. The chairman again tressed the point that only the authority to raise a loan was asked for at present, and it the money Avas not wanted none ivould be raised. He added that of the big original loan the sum of £IB,OOO Ava'R still not borrowed. The policy Avouid be the same in this case. In regard to financial assistance, tlic board would ask a deposit of 25 per cent, and alloAV tlie consumer to pay the balance in instalments OA'er two years. In Waimate West it Avas found that out of £I6OO advanced, half had been repaid, the advances bearing interest and sinking fund. In any part of the district the installations had to be a payable proposition before the poAver was put in, and 16 per cent. Avas the minimum to make them payable. On many roads it was as high as 22 per cent. He again stressed tlie fact that there was no possibility of a rate being collected, but that the rate liad to be struck m order to give security Mr. Murdoch added that on the big schemes, and with Arapuni idle, there had been a return of 7 per cent. Air HaAvken : But the Government,

•barges wliab it likes. The engineer said that in Canada, which was the only country with conditions similar to New Zealand, the cost was £5 per k.v.a., as compared with £8 here. But Canada, he said, had great industrial areas to lessen expense and aid revenue, and it would be some years before New Zealand could expect to get into the same position. In reply to Mr. Hawken, lie said that a farm with electric power and light installed would surely be a better proposition than one without these conveniences, and experience showed that no one wished to go back to the old engine. He said lie knew of cases where a motor had been used for 25 years and had little replacements. . , The engineer then explained, with a survey map of the district, the a}‘ ea that was proposed to be served, adding that the sparsely populated area away back had been cut out. • In reply to a question, he said that if an installation was worth £6O per annum, one consumer to the mile would pay, or say three at £2O, and if there were more the balance would be profit. He gave details of the estimated returns from various sections in the new area which varied from 14 per cent, to 20 per cent. These estimates were made on the routes where the board was likely to get most coiisumeis. There were some lines, he said, in Wainiate AYest which had at first not been payable, hut, with tlie extension of facilities, had gone up to as much as 18 per cent. Answering Mr. Plawken, the engineer said the estimates had been made on the basis of getting 60 cent, of motors, 40 per cent, of water heaters, and 8 per cent, of ranges. It all had installations, the return would orobably be 20 per cent., hut he added that if a return of 16 per cent, could not he secured they would not go on with any route. He was satisfied, now-