LOAN AUTHORITY

Hauraki Plains Gazette, Volume 46, Issue 3459, 23 March 1936, Page 5

LOAN AUTHORITY

THAMES VALLEY POWER EXTENSION PROPOSALS POLL ON FRIDAY WEEK. For the purpose of making additions and extensions to its existing reticulation system and for providing generally for the distribution of power throughout its area, the Thames Valley Electric Power Board has secured the authority of the Local Government Loans Board to raise the sum of £75,000 by way of loan. A ratepayers’ poll for this purpose will be I taken on Friday, April 3, 1936. The following list of localities for immediate consideration will definitely show the necessity for further loan monies in order to give the residents supply: Back Miranda Road, Mangatarata and Mahuta Roads, Torehape (all in Hauraki Plains County), Tokoroa, Thames Coast Road, PaeroaTahuna Road, Woods’ Road, Motu-maoho-Tauhei. Need For Loan. It is now ten years since the last loan proposal of £150,000 was considered, and this amount has- been expended on extensions to the original reticulation. The board now requires this further £75,000 for similar purposes. Unless the loan proposal is carried, extensions and additions to the existing reticulation from * loan monies will cease. The board would then have to consider making extensions out of revenue, or, in other words, out of profits. This would mean that the reductions in charges, would be restricted. One of the conditions, imposed upon the board in the Local Government Loans Board consent to the raising of the loan is that only £15,000 shall be raised for immediate requirements, and that before any of the balance of £60,000 may be raised, concrete proposals with guarantees of the necessary revenue required will have to be submitted to the Loans Board, in order to obtain its sanction to the raising of any of that amount. Twelve Months' Requirements. The £15,000 now proposed to; be raised should be sufficient to cover requirements for the next 12 months, but in order to save considerable expense in placing a number of loan proposals for smaller amounts before the ratepayers the board is providing for future requirements over the next five years in seeking for authority to raise the sum of £75,000. Since the board commenced operations no increase in charges has ever taken place. Reductions have been given wherever possible. It is hardly necessary to quote reductions given under flat rate charges, the bulk being given to milking and farm motors. Since April 1, 1931, to March 31, 1935, reductions given total £21,496, and from present indications of the board’s financial position further reductions should be made annually. Reasons For Poll. The Thames Valley Electric Power Board is the ratepayers’ own concern —a co-operative business operated by them through their chosen representatives. Success means lower charges for electricity throughout the area, this bringing in its train increased demands for electricity and further success. The reasons given for the success of the poll are set out by the chairman (Mr J. Price) as under:— 1. Tn order that settlers in nonreticulated areas can enjoy the benefits of electricity. ; 2. As in the past all interest and sinking fund charges have been met out of revenue. Ratepayers who have enjoyed the benefits of electricity should assist those ratepayers who have pledged their security in order that supply could be given. 3. Tn order that the continued success of the board may be maintained, therefore ensuring further reduction of charges to all consumers.