TOO CONSERVATIVE

Hawke's Bay Tribune, Volume XXIV, Issue 95, 5 April 1934, Page 4

TOO CONSERVATIVE

POWER BOARD POLICY Excessive Guarantees Asked RETARDING DEVELOPMENT The need of extending hydro-elec-tricity to country districts in order that settlers should have the advantage of the many accruing facilities was stressed by Mr. B. B. Creagh, a Napier representative on the Hawke’s Bay Electric Power Board, when discussing with a “Tribune” reporter the question of requests for connection with the board’s reticulation system.

Mr Creagh expressed the opinion that the board in this matter appeared to have old-fashioned ideas which were of a most watertight nature, making any development of its scheme for the benefit of settlers most difficult. Mr. Creagh considered that the guarantees asked by the board wore on an excessive basis, being a stumbling block to development, and he felt that the board ought to be prepared to take a commercial risk as did a private trading concern when desirous of seeking business.

The views expressed by Mr. Creagh are strongly supported by Mr. R. Harding, a representative of the Hawke’s Bay county on the board, who has taken an active part in urging tnat settlers where possible should share in the advantages of hydro-electricity. For some time past a number of settlers in the Maraekakaho Valley have made representations to have electric power made available to them, the matter having been brought forward by Mr Harding. Mr, Creagh pointed out that the necessary guarantee for supply to this particular district worked out at an average of about £2O per installation. This amount the settlers had considered excessive.

DUTY TO ASSIST SETTLERS. “I consider that where practical the settlers are entitled to every possible facility under the hydro-electrie system and it seems to me that the board looks at guarantees from a point of view that is too conservative,” said Mr. Creagh. “If the board was really out for business it should not adopt a hard and fust policy, but be prepared as a commercial enterprise to take a share of any contingent loss which may occur. When the matter was Dc< u re the board I suggested to the engineer that if he went into his estimate of cost in a more detailed manner he might find that his estimate might be on the high side, but he did not stem to think so.

“The Maraekakaho Valley is an important part of Hawke’s Bay, being in the vicinity of Hastings, and it is the board’s duty to assist the settlers by giving them the facilities of lighting, heating and power. The system is for the benefit of such farmers and it is up to the board to do the work. 1 am not standing for hopelessly unpayable propositions, but I am satisfied that the board is in a sufficiently sound position financially to take any contingent risks. The primary object of the board is to give service rather than to strive after big credit balances. The old-fashioned idea of doing nothing that would create a precedent has no justification, and I strongly favour each individual ease being treated on its merits.'

“With regard to the application from Tangoio, the settlers there appear to be in the unfortunate position of being very scattered with few properties to serve. The cost to each in the way of a guarantee would be over £4O, which would probably be too high for them. I hope, however, that the settlers will interest themselves in the matter by convening a meeting, which may enable them to place a workable proposition before the board.

BOARD’S MONOPOLY. “The whole question as I see it is whether the board is too conservative in the protection that it is seeking,” said Mr. Creagh. “If the control of electricity was in the hands of private concerns there would soon be strong competition for reticulating any areas where there was any chance of a reasonable amount of business being done or where there were fair prospects The board having what is really a monopoly of this service appears to be in a position of demanding any terms it thinks fit.

“By the amalgamation of power boards a big step could be taken in extending the service to farmers. I have gone fairly exhaustively into this matter and I am strongly of the opinion that if such a step was brought about costs to consumers could be reduced considerably. My view on this matter has been greatly strengthened after having carefully examined the balance sheets of the four power boards in Hawke’s Bay.

“Since I brought the question of amalgamation before the board nothing has been done, but I intend to pursue this question with the idea of having it brought about, as I am satisfied that once it could eventuate the savings brought about would be all to the benefit of consumers,” Mr. Creagh concluded. ORDINARY BUSINESS RISK. “I agree entirely with the views expressed by Mr. Creagh about the guarantees asked for by the board being too high,” said Mr. Harding when interviewed on this mattei. “Wherever practical the country settlers are entitled to have the benefits of hyoroelectric supply made available to them. I think that there is no argument about it. Where it is at all possible I am strongly in favour of the board assisting lean districts to receive supply by making conditions more elastic. “1 also agree that the board should be prepared to take an ordinary business commercial risk,” continued Mr. Harding. “I would go even further than Mr. Creagh does and say that in a district like the Valley, where there is a group of homes within a reasonable area, guarantees should not be asked for at all. I feel that the mere tact of a guarantee in which there is at signing up for five years frightens i people. In mosh cases settler a would

use a supply of current that would exceed their guarantee, but they don’t like the idea of being bound by some hard and fast agreement. “The question of the supplying of power to settlers,” Mr. Harding concluded, “is a most important one, and while 1 am a member of the board I intend seeing that all applications from settlers are thoroughly investigated and considered from all points of view before any refusal is decided upon. ”