POWER IN WAITEMATA.

New Zealand Herald, Volume LXVI, Issue 20407, 8 November 1929, Page 17

POWER IN WAITEMATA.

£IOO,OOO LOAN PROPOSAL.

RETICULATION EXTENSIONS. PROVIDING FOR FUTURE NEEDS. The proposals to be placed beforo the ratepayers of the Waitemata Power District on November 27, requiring a loan authorisation of £IOO,OOO, were explained at a meeting in tho Coronation Hall, Albany, last evening. Mr. l'\ E. Powell presided. Mr. J. W. Ilayden, chairman of tho board, who was accompanied by Messrs. M. E. Thompson and A. E, Greenslade, members, and Mr. F. J. 11. Wilson, engineer, stated that a defined policy had been pursued of first reticulating the closely populated areas and the more profitablo sources of revenue, and then extending to the more sparsely settled portions of the power district. Tho board was anxious to carry the benefits of electricity to the outposts of the 627 square miles of its territory and to every portion where a payable load offered. The larger revenue would inevitably result in a reduction of the charges for electricity, which already compared favourably with those of other similar undertakings in the Dominion. Last year a reduction of one penny a unit was made in the lighting charges, representing an aggregate annual saving of £3700, while during the current year other reductions, totalling £2500 a year, had been made. A prudent financial policy also had been followed, and strong general reserve, depreciation, and sinking funds had been established, aggregating £42,272. Additional office accommodation was being provided out of reserves, no loan money being absorbed for this work. As further areas became payable propositions from time to time, additional capital expenditure was necessary for line extensions. A loan authorisation of £IOO.OOO was being sought so that adequate finance would be available as required. The cost of taking a poll in such a large and scattered district made it undesirable that this should be done every time extra capital was needed for specific work. Therefore, ratepayers were being asked to authorise a loan of £IOO,OOO, but £30,000 only of this would be raised for contemplated work in the near future.

The sanction of the Local Government Loans Board would have to be obtained before the balance of £70,000 could be borrowed. This authority would have to be satisfied that any intended work was legitimately required before permission to use the loan balance for it would be forthcoming. The interests of the ratepayers would be fully safeguarded by this restriction. The business of the board was conducted so that all charges, including interest and sinking fund on loan moneys, were defrayed from the revenue derived from the sale of current. With the utmost confidence ratepayers could be assured that no portion of the special rate that would be formally struck as security for the loan would ever be collected.

On the motion of Mr. liooton, seconded by Mr. Charman, Mr. Hayden was thanked for the address, and support was accorded to the loan proposals.