Increased NAPB Expenditure Due To Blundering, Hush-Hush?

Northern Advocate, 13 August 1948, Page 4

Increased NAPB Expenditure Due To Blundering, Hush-Hush?

INCREASES in the capital expenditure of the North Auckland Electric Power Board and reductions in construction work during the past five years due to allegedly blundering “go-slow” and “hush-hush” policies “behind closed doors,” were claimed by Mr J. A. S. Mac Kay at yesterday’s meeting of the board to have taken place. . . After detailing increases and reductions which he claimed had occurred, Mr Mac Kay stated that there was evidence that a “go-slow” policy and a desire to restrict reticulation in outlying districts, which had become apparent early in 1943, was largely, if not wholly, responsible for the rises in expenditure.

At the July meeting the board's secretary (Mr S P. Day) had given, at Mr Mac Kay’s request, an account of capital expenditure for the past five years. “Although the analysis as prepared was not what I had asked for, I have found the information given extremely interesting, especially in view of the fact that it deals with those five years during which practically all our business was dealt with behind closed doors by a comroittee,” said Mr MacKay.

Mr Mac Kay replied that the board had approved of construction totalling much more than 125 miles of power lines a year. “There is no getting away from the fact that we have dropped from an average of 125 miles for seven (four of which were war years) to only 18 miles a year now.

The board then adopted Mr Clarke’s suggestion that a report should be brought down on the reasons for the increases.

"I feel, however, that it would give Mr Day’s analysis added interest if a survey were also made of the previous seven years’ operations, when expenditure and construction were controlled and conducted by the democratically elected board, in accordance with the provisions of the Power Boards Act, and also if a comparison of the results of the operations of each administration were given. MR MacKAY’S ANALYSIS “I will therefore endeavour to give such an analysis and comparison. “Prior to March 31, 1943, the total capital expenditure amounted to £570,887/19/9, and the route miles constructed totalled 1051 miles 18 chains.

“During the seven years when the board conducted the business 881 miles 52 chains, or an average of 125 miles 75 chains per annum, were constructed at a cost of £398.056/10/11, or an average cost of £451/10/1 l l a mile. “During the five years when extensions of reticulation, guarantees ol revenue and practically all other business questions were entirely in the hands of the committee, 169 miles 46 chains, or a yearly average of 33 miles 73 chains were constructed with a capital expenditure of £172,531/8/10, or an average capital expenditure of £lOl7 6/7 a mile.

“In the first year of the committee’s control, construction dropped from an average of 125 miles 75 chains to 18 miles 75 chains, and costs increased by 132.5 per cent. “Total line construction carried out by the committee shows an increase in cost above that, carried out by the board, of 125.2 per cent.

“Highest average cost reached in any year during this five-year period was £1340/7/2 a mile, an increase of £B3B 6/3 a mile, or 196.4 per cent over the average cost a mile during the seven years, including four war years, when the open board conducted the business. “GO SLOW POLICY” “I do not wish to comment further on these figures—they speak loudly for themselves —except to say that while they indicate plainly that someone has blundered, there is no indication of inefficiency on the staff’s part. “However, there is evidence that the go-slow policy and the desire to restrict reticulation in the outlying districts, w’hich became apparent early in ; 1943 were largely, if not wholly, rel sponsible for the increases, j “Air unpleasant feature cf the posi--1 tion is that the hush-hush policy, the j reason for which proved so difficult for j our people to understand, was obvi- ! ously designed to prevent what was j being done being reported outside the [ closed doors of the committee room.

“It is gratifying, however, to be able to record that both these policies have now been abandoned in so far as their application to extensions of reticulation is concerned, and that the will to progress which has again become apparent in recent months has already resulted in a splendid supply of hardwood poles and a large number of iron posts, a quantity of steel for concrete pole making, and a supply of hardwood timber being delivered where required in various parts of the district. “This gives substantial grounds for hope that an average of at least 125 miles a year will again be maintained until the whole of our backblock areas so urgently in need of electricity will be reticulated,” Mr Mac Kay concluded. INCREASED COSTS Mr E. G. Appleton: Mr Mac Kay seems to attribute the rise in costs to our being behind closed doors. I attribute it to the increased costs of materials and labour. Mr A. Clarke: Mr Mac Kay’s figures have not been disproved by any member of the board or staff, and'this is definitely disquieting. “We should bring down a report on the whys and wherefores of the increase, which is out of all reason.” Mr H. Smith: I was not on the board in 1943, and I want to know more of this go-slow policy. “Does Mr Mac Kay not know there was a war being fought recently? “We can never get back now to 125 miles of line construction a year. In the period Mr Mac Kay is referring to we were making extensions in thickly populated areas, whereas we are now working in the more sparsely populated districts.”