Despite Many Difficulties Power Board Progresses

Northern Advocate, 24 May 1941, Page 8

Despite Many Difficulties Power Board Progresses

“The past year has been a very difficult one for the North Auckland Electric-power Board, mainly brought about by a shortage of labour, restricted imports and' the difficulty of getting essential materials owing to war conditions,” stated the chairman of the board (Mr. J. A. McLean), at the annual meeting in Dargaville yesterday.

“Important materials are imported from England and Canada and, in many cases the same quality article cannot be obtained elsewhere, and many of the articles in short supply were not manufactured in New Zealand in time to supply our requirements, such as transformers and insulators.

“Then the importation of poles from Australia has been interfered with owing to shipping and weather conditions in the bush areas from which our poles are brought. Progress Slowed

“Some materials, principally copper wire, have been lost at sea by enemy action. The above contributing causes have slowed up the progress of construction and, in addition, the men who have enlisted or been called up have caused some, dislocation of the board’s work. All the above have been contributing causes in the general effect. “We are now employing 34 men

as against 66 employed 12 months ago, so that you can see a general slowing up has taken place. “Four switching-on ceremonies took place in the district during the year, and these were enthusiastically attended.

“The financial side of the operations show steady improvement and the net profit this year is £14,019, as against £ 12,410 for the last financial year.

“Speaking generally, this is the direction in which the sales of electricity tend —In the first year 6l installation users are very careful of the consumption of light and power, and then as the second year approaches, more use is made of appliances and light, v and in many cases the revenue increases, and also there is a general increase as new lines are built and new consumers are linked with the system. Little Danger of Shortage

“Some concern was caused three months ago by staements being made that there might be a shortage of bulk power in the North because of the difficulty of getting reserve stocks of coal for use at the Auckland Power Board steam generating depot and because of the very Indefinite information with regard to the increase in the supply of water for Arapuni hydro works in the Waikato.

“Mr. Kissell informed a power board conference at Palmerston North recently that, given an average rainfall in the Waikato, and a slightly increased production of coal for Auckland, there was very little danger of a shortage. “There are still some large areas to be reticulated in the power board district, and in many of these districts I believe that the proposal of the board to subsidise the building of lines, will require to be put into operation. Cautious- Subsidising

“In the particular reserve referred to, we now have £3OOO and £4OOO in a general reserve in addition, so that in this year we may put to the test the advisability of helping some of the areas not now reticulated. You must understand that the subsidising must proceed with caution, because such a provision carried on to an excessive extent could easily turn a prosperous board into one where no profits were made.

“Referring again to the difficulty in obtaining power poles from Australia, the seller gives as the reason an extremely wet season in the bush areas, but my” experience of bush work in this district does not lead me to be satisfied that a wet season is the real reason, but we must take the reasons given as being correct until they can be proved to be wrong. “In the meantime, the engineer (Mr. T. R. Overton) is using every means to obtain a shipment of poles, even to the extent of writing direct to the Forestry Commission of Australia.

Successful Progress

“The progress of the board during the construction period has been quite satisfactory; all the work, both outside and inside, is proceeding smoothly and ft is a matter for congratulation that we should be members of a successfully operated local body. “Very little criticism has been levelled at the conduct of the board and I believe that the introduction of electricity to the huge area over which we operate has been a real Godsend to those consuming power and using the light. “While the cost of the light, may be considered high, it must be remembered that against any other form of lighting previously used in the area the lighting power is nearly three times as great for approximately the same cost, and that cost is comparable with the cost in other boards with a similar length of life. Power charges are comparable with other boards, and the operation shows'a saving in costs and much greater efficiency and convenience.

Promises Fulfilled

- “I told ratepayers five years ago that the board could borrow money at 3J per "cent., and that the estimates of income and expenditure were so good that I could tell them that it would never be necessary to collect any portion of the rate levied as security.

“Mr. Overton gave figures of the costs of operation in some cases so low per cow per year that I sometimes doubted their correctness. I can now tell you that, apart from an odd criticism now and then, the generally accepted opinion is that the estimates have proved to be correct, and that both the engineer and the chairman have lived up to their promises, and the engineer’s estimates have proved over-a period of four years to be correct.

“There has never been an expression of dissatisfaction with milking or power costs, and it is recognised that we have an electrical installation that is second to none in New Zealand, built with good material and built to last.

Repayment of Money “The £397,000 borrowed, together with the calculated interest, is being repaid in 50 or less six-monthly repayments, repaid regularly; the position of the board is very sound and in 20 year?; except for further borrowings, we shall have a debt-free community service of inestimable value, and one that every member of the board should be proud to have helped build.

“I feel that I would be lacking in my duty to finish this report without making reference to the world war at present beng waged in an effort to preserve the freedom, in all forms,, of free countries, and my admiration of the splendid way in which our young men, here and everywhere in New

Zealand, have responded to the call for soldiers to fight on the side of Britain, the greatest country the world has ever seen, with the most elastic laws inside Britain and in her Dominions, with that absolutely fair-minded policy in everything material affecting the British people and the people under her control. Twenty-two of the power board employees have enlisted.

“The response has been magnificent, and our admiration of these splendid fellows must be expressed on occasions like this, and we must view them with a warm-hearted enthusiasm as the men and boys who are fighting our battles for us. Where it is possible to help them, that help must be given freely, and they must be supported and backed up with our whole might, because we depend on the soldiers to protect our children and women—God bless our soldiers.”

The chairman concluded by thanking members of the staff and members for their co-operation during the year and to the press for courtesy and consideration.

Although members of the board had periodical differences, the board was still the strongest local body north of Auckland, he said. His real regret was that Mr. A. J. McKay was not present at the meeting.

Points cf Criticism

Mr. J. N. McCarroll pointed out that in his report the chairman had referred to the subsidy on building lines. The proposal, as he had stated at the last meeting, was that the subsidy should be on the revenue of backblock lines. A sum of £IOOO would go nowhere in building lines. “Another point the chairman seems to have thrashed continually is regarding the rate levy,” he continued. “It was an easy thing to keep that promise and I think it has been thrashed too much in the report. If the board got into difficulties all we would have to do would be to raise the charge to consumers.” Such a question as the subsidy could be referred to the executive committee if it were in existence, said Mr. J. A. S. Mac Kay. Last year he had moved that the report should be drawn up by the executive and the chairman had claimed that the chairman, engineer and secretary constituted the executive.

Dangerous Ground

No executive committee had been appointed last year, a position which Mr. Mac Kay regretted as a great mistake. .

Questions such as had been referred to by Mr. McCarroll required serious consideration and were not for members of the staff to decide, he continued. The board was served by a good staff, but when a staff came to the position where it replaced the executive, the board was treading dangerous ground. Explaining the position which had arisen last year, the chairman said that Mr. Mac Kay had moved that the executive should report on the board buildings. He, with the executive officers, had been under the impression that the chairman, engineer and secretary comprised the executive. Two Committees

A full explanation of the position last year was given by .Mr. W. Collins. Previously the committee had met but last year the board had decided that the full board should deal, with finance. Today it was. again open to the board to appoint a committee if it thought fit. Replying to a question, the chairman said that previously there had been two separate committees, one for finance and the other, for executive matters, and both had been abolished.

When he had first been elected he had stressed that finance should be the business of the whole board, said Mr. F. Elliott. He had had no intention that the executive should be abolished.

Mr. J. N. McCarroll rose to a point of order and the report was received and adopted.

Committee Appointments

When the question of commitee appointments came before the board later in the meeting it was decided that the whole board should constitute the finance committee and that the executive committee should comprise Messrs. McLean (representing Dargaville), R. Coates (Otamatea), E. G. Appleton (Hobson) and J. A. S. MacKay (Whangarei). Mr. McCarroll pointed out that where special matters were concerned, a specially specified committee should be set up. The chairman, engineer and secretary, as a commitee, did not have power unless given it by the board.

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