CONCERN CAUSED

Manawatu Standard, Volume LVIII, Issue 229, 26 August 1938, Page 8

CONCERN CAUSED

ELECTRICAL EXTENSIONS.

BY MINISTER’S STATEMENT.

A confidential circular letter received from tlie Electric Power Boards Association was dealt with in committee at a meeting of the Horowhenua Electric Power Board. The letter had reference to the question of guarantees or revenue on new extensions to electrical systems, in the light of the expressed disapproval of the Minister of Public Works (Hon. R. Semple). The Press was subsequently handed a copy ot the representations made to the Minister by a deputation, together with the reply that had been received. The deputation was sent to the Minister by the executive of the Electric Power Boards’ and Supply Authorities Association. It pointed out that, the reported statement that the Minister did not approve of guarantees was causing the supply authorities considerable I embarrassment, because it was only by i requiring reasonable guarantees of revenue that they were able to finance I the cost of power lines in rural areas, j Replying, Mr Semple said he appreciated fully the good work, done by the various power boards and other distributing authorities in making power available, and recognised that some system of reasonable guarantees was. essential if the electric supply business iwas to continue to be successful. At ! the same time he pointed out that ne bad been approached by numerous deputations all over the country com- | plaining that, although they were most anxious to have electricity, they were unable to meet the high guarantees which many supply authorities were requiring. , , The Minister stated that these people had his heartfelt sympathy, as Jie recognised the boon that a plentiful supply of electricity could be to the country settlor. He" recognised, however, that there was a great economic problem to be overcome in giving this supply, and under the present system he could not blame the power boards for requiring an adequate return on the public money which thev were called on to administer. He advised the various boards to continue with the work they had in hand as the Government had not ver been ’able to give special consideration to the problem of electricity supply in country areas. His own .opinion was that it might he possible at a later date to devise some means, not by which the guarantee system could be done a wav with, but some means by which power might be made available to settlers in more sparsely-settled | areas, where at present they were unable to meet guarantees which were excessive and bevond the value ot any service they were likely to receive from electricity 'supplied.