Power Board’s Most Successful Year

Manawatu Times, Volume 66, Issue 124, 27 May 1941, Page 2

Power Board’s Most Successful Year

FINANCES REVIEWED AT ANNUAL MEETING '‘The board has had a very successful year,” stated Mr. J. Boyce, chairman of the Manawatu-Oroua Power Board, in his report to the annual meeting of the board yesterday. “The profit for the year was £13,851, and of this amount £4969 has been appropriated to capital expenditure, leaving £SSBI 13s lUd to carry forward. If material had been availaolo for maintenance and renewals this balance would have been reduced. The board has been in operation now for 16 years and this year has been the most successful. “To show members tho growth of tho board over the last four years, the following are tho units purchased and sold in the period:— Purchased. Bold. 1937- 35,556,622 34,437,050 1938- 39,5/9,349 37,072,490 1939- 44,556,030 42,296,073 1940- 54,053,202 51,258,351 Capital Expenditure “The capital expenditure for the year amounted to £13,223. Of this amount £4969 was provided from revenuo and the balance from loan money. Most of tho expenditure has been to cope with the increased load on our present oysteni, tho only major extension being tho reticulation of Ridgo Road at Apiti. Tho only further extension which has been authorised and not carried out is Midland Road, Colyton, and this will be carried out when material is available. ‘ ‘ The board has not raised any loan moneys during the year, the amount expended during the year being tho balance of the £15,000 raised in October, 1939. The amount of authorisation still available to the board is £25,000, but l do not recommend the raising of any further loan money's until it is absolutely necessary. “The total sinking funds held by tho Public Trustee amount to £55,907 and the amount hold by tho same office for depreciation is £41,636. The position of the board’s loan repayments and reserves is as follows;—Loans repaid, £89,464; sinking funds invested, £55,907; depreciation fund, £45,805; total, £191,177. “The position *f the board’s indebtedness as at March 31, 1941, is as follows:—Total loans raised and taken over from Feilding Borough Council, £590,000; premiums on conversion, £7744; total, £597,744 —loss amount repaid, £89,464 —balance, £505,250. Incoma Sales of Current. 1939-40 1940-41 Milking £10,569 £11,962 Industrial 8,788 8,974 Freozing works .. 9,097 10,536 Water heating .... 11,234 12,328 Street and community lighting .. .. .. 1,140 1,147 Lighting, heating and cooking 43,329 47,014 Ohakea Aerodrome 2,020 6,218 Bulk 36,183 41,510 122,364 139,691 Miscellaneous Profit on trading .. 164 408 Rent 288 300 Miscellaneous .... 1 3 £122,818 £140,403 “Sales of current show an increase under all headings. The power tariff was reduced us irom Oetoocr 1, 1940, and this has resulted in a considerable reduction to industrial users. The total increase in revenue is the largest amount in any one year sinco the board nas been in operation. Expenditure “Tho summary of expenditure is as follows: Purchase of power .. £58,372 £67,623 -Uam transmission aud distribution .. .. 12,408 12,788 Renewals ana depreciation 6,374 5,642 Puouc ugnting .. ~ 144 91 Management and general 5,753 6,334 Ouico alterations .. 815 Interest 21,723 21,555 .Sinking fund .. .. 8,248 9,201 Debentures redeemed 2,134 2,387 Uuauth’d. expenditure 104 31 Bad debts reserve .. 250 230 Nat. Patriotic Fund 500 Miscellaneous .. .. 120 146 £116,479 £126,552 Appropriation for capital expenditure 978 4,969 £117,457 £131,522 “The increase of expenditure over the previous year, exclusive of capital expenditure, amounts to £10,073, the main increases being cost of power (£9250) and grant to Patriotic Fund £500). Total revenue for year .. .. £140,403 Total expenditure lor year .. 126,552 Balance £13,851 Appropriation for capital expenditure 4,969 Balance to balance-sheet £B,BBI “Installation and sales for the year amounted to £8463, the profit being £4OB. The extra profit is accounted for by bigger sales of ranges, etc., which were not available during tho previous year. The amount outstanding on credit sales and time payment at March 31, I 1941, was £5093. “The total salaries and wages paid under all headings during tue year amounted to £18,600, compared with £18,913 for the previous year. The cost of trunsport for the year was £2883, compared with £2856 the jirevious year. The board’s policy of replacing so many trucks eacli year may be difficult to carry out this year owing to the difficulty of obtaining now trucks. ‘ * The following statistics show how each £1 of revenue lias been disbursed during the year;—Purchuse of power 9s Bd, interest 3s id, sinking fund and debentures Is Bd, depreciation and renewals lOd, main transmission and distribution. Is lOd, management and general Js, capital expenditure Bd, surplus Is 3d. Revenue and Purchase of Current Cost of Revenue. Power. Balance. 1936- £92,054 £40,025 £52,029 1937- 101,077 40,455 54,622 1938- 107,779 51,180 56,599 1939- 122,364 58,372 63,992 1940- 139,691 67,623 72,068 “Tho above figures show that the cost of power has increased considerably and that the return in. revenue has been very satisfactory on tho extra amount purchased. “In regard to the estimatos for the coming year, I should like to point out to the board that it is very difficult to fprecast, particularly as to maintenance. as this will depend on material available and also the power supply; members know this is giving some concern. No provision has been made in the estimates for cnpitul expenditure, and, if the estimates are reforrod to the

executive committee this will then be considered. “ Concluding, Mr. Boyce thanked members of the board and the staff for their help and co-operation during the year. in addition to Mr. Boyce there were present: Messrs. L. Hogg, N. Campbell, J. Batchoiar, W. P. Bickers, P. Guy, J. H. Mason, W. McKay, J. T. J. Heatley, M. A. Eliott, J. A. Nash and C. G. C. Dormer. A welcome was extended by the chairman to Messrs. Heatley and Batchelar, both of whom were elected to the board at the recent elections. Members congratulated Mr. Boyce on his report ana expressed satisfaction with tho position revealed. Mr. Boyce was re-elected chairman. Committees were set up as follow: Executive, Messrs. Boyce, Dermer, Campbell, Bickers, McKay and Mason; finance, Messrs. Boyce, Eliott, Mason and Campbell;, transport, Messrs. Boyce, Hogg, Guy and Heatley; emergency, Messrs. Boyce, Nash, Eliott and Guy. Consumption Must be Kept Down A circular letter from the Electricity Controller advised that the supply position was not good by any means yet, but had improved and it now appeared that, excluding breakdowns of machines, the problem generally could be handled by appeals to consumers, in which direction the board’s co-operation I was sought. The aim would be to restrict the total weekly increase for the North Island to 4 per cent, over the corresponding week of last year. Due to various facts, it would not be equitable to ask all supply authorities to reduce their load to only the 4 per cent, increase, and for the Manaw r atu-Oroua Board tho aim should be to limit the weekly increase in load to 7i per cent, of the corresponding week of last year. A careful record was being kept of the loads of all supply authorities aud in particular cases it might be necessary for a supply authority to take steps to reduce its load by compulsion, if voluntary action was not sufficient. If such further steps w-ere necessary to enable 1 the board to control its load more effectively it might be necessary to delegate to the board some of the powers of the Electricity Controller. Referring to a recent Ministerial statement, Mr. Nash said it was a pity that such a statement had been made at a time when boards were being asked to cut down their .load. The chairman: They make it look ridiculous. After it had been suggested that consumers should be appealed to through the newspapers to reduce their consumption, Mr. Guy asked what had been the responso on the lost occasion such an appeal had been made. The engineer (Mr. \V. A. Waters): Consumption went up. After a general discussion as to the best way of meeting the position, it was decided to invite consumers who have water heaters in cowsheds and are prepared to cut them off for two months to notify the board, and in the event of their being cut off, an allowance will be made.