WAITOMO POWER BOARD

King Country Chronicle, Volume XXVI, Issue 3448, 22 November 1932, Page 5

WAITOMO POWER BOARD

MONTHLY MEETING. The usual monthly meeting of the Waitomo Electric Power Board was held in the Board’s offices yesterday, there being present Messrs. W. A. Lee (chairman), V. W. Simms, J. Gorton, W. Irvine, T. O’Connell, W. S. Cato, J. N. Boddie, the secretary, Mr. W. F. Seeker, and the engineer, Mr. N. A. Davidson. Interest Payments. A letter was received from the Otago Power Board: “It is a truism that all local bodies of New Zealand rely on the primary industry of New Zealand for their support, either directly or indirectly. And as prices for primary produce are well below those of 1914, and whereas New Zealand costs are nearly 50 per cent, above those of 1914, it is simply impossible to balance expenditure with revenue, and losses are the rule. It is quite evident, therefore, that rates of interest of local bodies’ loans must be reduced. “Like many another concern we have been living in hopes of affairs improving, but such a happy state has not eventuated. The relief afforded by the National Expenditure Adjustment Act has not met our straitened circumstances. ... In every other department of expense we have exercised strict economy, but we are forced to admit that interest prices are too high. This board then desires that constitutional methods should be employed in obtaining relief.” The letter went on to advocate the compulsory conversion of these loans. The chairman was of the opinion that the proposals set out by this Board was a matter for the Power Board’s executive to take up and formulate proposals. The relief given to local bodies had been totally inadequate, and it would be necessary to get pressure to bear on the Government in regard to this matter.

Mr. Gorton: “It would be repudiation purely and simnly.” He went on to state that according to the debentures issued the interest on them was due for a certain time, and to alter that was a breach of contract. Mr. Simms asked what could be done about it. Bankruptcy was also repudiation. The chairman could not see the equity of the local body interest being reduced only 10 per cent and others 20 per cent. A local body loan at 6 per cent, was gilt-edged. Mr. Simms: The interest, charges are the trouble to-day. It is necessary to face the facts, and it is no good waiting until too late. Mr. Gorton said -he agreed with the facts as set out in the letter, but could not agree with legislation to reduce interest in this manner. The Chairman: I take it that the members of the Board are not advocating the reduction of interest where the rate is reasonable. Mr. Simms: The bank interest is the kill. The resolution to support the Otago Power Board in this matter and forward the remit to the Power Boards’ Association was carried, Mr. Gorton dissenting. Cost of Bulk Supply. The Hawke’s Bay Power Board wrote considering that, although they were quite aware of the reasons which have lead up to special contracts to the P.W.D. concerning the sale of electricity, there should be standard rates applicable to the whole Dominion and that 'no exceptions should be made to this rule. Why should the smaller power beards pay from £1 to £4 per k.v.a. more than the cities? The chairman pointed out that Mr, Broadfoot was in sympathy with the request. The speaker considered that there was no reason why there should be these preferential agreements. The county boards, if anything, should have the concessions. Mr. Simms: “We have been asking for this ever since I have been a member of the Board.” Some time ago he had been in a deputation which went to Wellington on the matter, but the answer from the Departmental head was that the P.W.D. had had to its best for its best customer. “And it is the Departmental heads that run the State, not Parliament,” he added. The secretary pointed out that, as the two big centres, Auckland and Wellington, were both about the farthest away from their respective sources of supply, they necessitated correspondingly heavy reticulation costs to the P.W.D. Mr. Gorton’s resolution, that Mr. Broadfoot be written to and asked if he would bring the matter up on the floor of the House, was carried.

The Otorohanga Chamber _of Commerce asked for a price for four decorative lighting streamers over Maniapoto Street for ten days at Christmas. A nominal rate of 80s. for installation and current was fixed, the engineer pointing out that the time the lighting would be in operation would not be on the peak load. Another letter from the Otorohanga Chamber asked that the Otorohanga office should always be open on the 20th, or the usual discount day, as farmers who bad recently come in to pay tlieir accounts bad found the office closed. The secretary explained that when the 20th fell on a Tuesday or Thursday, the discount was extended to the 21st, when the office would be open. Mr. Simms stated that he bad been amongst those inconvenienced in this way. The notification that discount day bad been extended was certainly on the account, but it was seldom that these were noticed, and he considered the present system very indefinite. It was decided that the office should always be open on the 20th of the month. The question of the position of poles in Hinewai Street, Otorohanga, was brought up by Mr. Gorton. _ The poles had been placed on the unformed footpath, and now that the work of forming was to begin, it was found tlicv would obstruct. Mr. Gorton thought that the explanation given by the contractors for the work was very weak.

The chairman, howevei', did not tliink the position at Otorohanga was serious, as there was still room for a 9ft. footpath to be formed. There was also no liability on the Board, and to it would create a precedent that in future cases might be dangerous. No move could be made by the Board, and Mr. Gorton’s suggestion that a conference be arranged between the Waitomo Power and Otorohanga Town Boards could thus serve no useful purpose. It was resolved that the Otorohanga Town Board be written to disclaiming liability, and pointing out that there was still room to form an adequate footpath. Half Year’s Operations. The secretary, Mr. Seeker, submitted the following statement of accounts for the half year ending BOth September last, the figures for the previous half-year being shown in parentheses:— Expenditure. Purchase of Electricity, £3076 2s 5d (£2471 16s 2d). Distribution and Operation Expenses: Transport, £155 8s lid (£9B 17s lid); general maintenance, £126 15s (£l3l 14s 6d); wages, £531 6s 8d (£532 7s Id.) Management and General: Salaries £B3O 17s 2d (£879 6s 6d); members’ travelling expenses, £54 Is 6d (£52 11s Od) ; staff travelling expenses, £ll 18s 6d (£4 2s lOd); insurances, £159 9s lid (£IBO 6s 2d); rent and rates, £64 4s 2d (£4l 9s 7d); stamps, telegrams and exchange, £3O 6s 2d (£37 16s Id); telephones and bureau fees, £6O 6s (£54 18s 8d) ; printing, stationery and advertising, £93 12s lid (£l4O 7s 6d); legal expenses, £ll 19s 6d (£23 7s lid) ; office expenses, £ls 16s lOd (£l6O 4s Id); miscellaneous charges, £23 12s 5d (£lO 10s Id); unauthorised expenditure, £2 2s (£3l 6s 3d); balance to nett revenue, £4507 6s 6d (£4942 13s 4d.) Total, £9755 6s 7d (£9793 16s sd) Receipts. Sales of Electricity: Lighting, heating and cooking, power, and street lighting, £9755 6s 7d (£9793 16s 5d.) Comparison of Revenue. A comparison of revenue for the half year ending 30th September last as compared with the previous six months is as follows, last year’s figures being in parentheses:— Domestic lighting, £2127 19s lOd (£2333 3s 3d) ; domestic heating, £ll3B 12s 9d (£IO2B 12s Id); commercial lighting (including community lighting), £1798 6s 9d (£2OOI 13s 9d; commercial heating, £BO7 0s Id (£877 12s 2d) ; water heaters (fixed charges), £446 5s 5d (£613 Is 8d) ; industrial motors, £2337 15s 3d (£1476 13s 7d); pumping motors £SO 12s Id (£75 15s) ; farm motors (fixed charges), £27 11s lid (£ls 6s); milking motors (fixed charges), £715 13s 8d (£914 6s 4d); street lights, £207 (£205 10s) ; fuse maintenance, nil (£123 7s); discounts forfeited, £9B 8s lOd (£l2B 15s 7c1.) Total, £9755 6s 7d (£9793 16s 5d.) _____