SUPPLY OF ELECTEICITY

New Zealand Herald, Volume LX, Issue 18495, 4 September 1923, Page 8

SUPPLY OF ELECTEICITY

BOARDS' RATING POWERS.

MINISTER'S EXPLANATION.

POWER OF COMPULSION.

APPLICATION RESTRICTED.

[by: telegraph.—OWN cbRBISPOrfDKNT.] : WELLINGTON. Monday.

' Asked if he .had anything to say_ in reply to the leading article in the New Zealand Herald of August 27, regarding 'the Electric-Power' Board? ;; Amendment Act, the Minister for . Public Works, the Hon. J. G. Coates, made the following statement 'this afternoon ; --The rating power given in the new Act.is not a new power. In fact, the clause is" designed to give a more equitable alternative than the existing rating power of.the boards. All local authorities already had power to impose a separate rate over a defined portion to their districts, and to give to consumers a concession on their electric power accounts equal to the amount, of ! the rate collected, or any other concession, provided it was equally available Ito all consumers. So that no new power is given by the new clause, but, rather, restrictions are placed on 'the existing rating power which render it much more equitable. The new; clause provides that the rate cannot bo collected unless and until a supply of electricity is available, whereas, under the previous powers, the rate had ! to be collected . from , the whole area deI fined, iirespective of whether the ratej payers could get the advantage of electric power supply or not. limitation of Amount.

Moreover, under the. previous . legisla tion, there was uo limit to the amount of the rate that could be collected from any one property. With a very large property, which could, in any case, only iuo £30 to £50 worth of electricity per year, it is obviously inequitable to allow a very large rate of, possibly, £60 to £100, to be imposed. And the new clause places a limit of £30 on the maximum amount for any one holding. 'It is also obviously equitable that a small property, however small, jshould pay a minimum amount, and £1 a year, or Is 8d per month, has been fixed as a minimum. This is so small as to be no hardship at all to any property to which electricity is available. The assessment of each property cannot, of course, be arbitrary, as inferred by the article. It must bo based on tht> actual value of the property, in accordance with the Bating Act, and will bo (massed equitably on the valuations. The result of the installation of the electric power will obviously be to increase the value of all property within reach of the mains to a greater amount than the actual outlay on such mains, and it Is only equitable that the property so improved should pay for the deficiency in ; revenue, if any. Restriction on Overdraft. \ In any case., it must bo recognised that the main source of revenue of the electric power boards will be the revenue from the sale of electricity, which, after three or four years, when the boards are well established, will generally pay all charges and give substantial profits toward reserve funds and improvements in the system. Bating power, 13 only required during the first t'hreo or four years when the load is being built up, and even for this period the recent Act, in clause 3, gives relief by allowing the losses of the first three years to be carried forward under a definite limit of amount to Che fifth, sixth, and seventh years, by which time the deficiency must, bo void. In the eighth and subsequent years the boards must pay their way. This provision will enable most of he boards to dispense with rating altogether. It is, of course, inconceivable that the Auckland _ Electric Power Board would ever require to impose an electric power rate within the cityythoueh if may deem it advisable to take advantage of its rating powers in the * more distant portions of fho country area if a demand arises which cannot othewiso be mad© to pay its way.' Tn any case, whatever powers are given by the recent Act are entirely under the control of the ratepayers, bath "in the 's'ancfionirie of the' loan and in the periodic election of the members of the board. ;,. Promises Not Enforceable^ The article referred to states that " careful ; business arrangements would have enabled • these boards to secure adequate promises from , prospective consumers." This has been done in several oases, and yet fhese promises nave, proved to bo not enforceable, and it is only equitable that ratepayers who have made such . promises .and failed to keep "them should pay a rate when Che electricity is mado available. Co them.; And when they take supply they should receive a credit for the amount of the rate actually paid. \ The principle is not new. In fact, it is common to all local body rating. Apart from the precedents of water supply and drainage quoted in the article, ratepayers have all to pay whether they use them or not for the roads, bridges, street lighting, town halls, gardens, and all pub-lic-improvements, and in most cases quito irrespective of whether they can possibly use these conveniences. Financing Installations;

The electric power boards, On the other hand,. under the new powers, can only collect the rate provided 'the ratepayer is within reach of an. electric main, and thus has a supply of electricity available to his property. Moreover, are ratepayers, after voting' for a loan proposal and electing a board to carry out the proposals, to be allowed to sit back and let their neighbours, who take supply, bear the whole burden, including any loss duo to their failure toHake supply It may be ■ claimed that, a • man, may not be able to afford to wire his premises. This does not. reduce the increased Value of his premises owing to the supply being available, but to meet this case, practically all of the boards have arranged systems of advances, to . consumers, and some have arranged to do the whole work arid charge nothing until supply is given, and then only in proportion to the use made of the power. With these facilities there is no reason why ratepayers should continue to use more expensive and less efficient methods of lighting, heating and driving, and it is- essential in the public interest that the strongest" pressure should bo brought to bear to overcome the inertia of their ignorance. But the main point is that the boards, in common with all local authorities, already had -the drastic rating powers referred to in the article, and the new.. Act .serves only to limit the rating to those who are able to obtain a supply of electricity and to put a maximum amount on the rate payable yearly by any one property.