POWER BOARD COSTS

New Zealand Herald, Volume LXX, Issue 21454, 30 March 1933, Page 12

POWER BOARD COSTS

MOVE FOR REDUCTION DECISIONS IN FRANKLIN LOAN CONVERSION PROPOSAL [from our own correspondent] PUKEKOHE, Wednesday That charges to consumers would be reduced by at least another £IOOO in the new financial year, which opens on Apri 1, was indicated by decisions made at 8 meeting of the Franklin Power Boarc yesterday. It was decided to tnke steps for tho conversion of loans and the cessa tion of payments to the depreciation re serve with a view to saving consumers s further £3975 per annum, making a tota of £4975, which would permit of at least f 10 per cent reduction in tho prescnl charges. The committee set up at tho previous meeting to review tho board's finance: with a view to giving consumers stil cheaper power recommended that as fron April 1 all salaries and wages paid by tlx board be reduced by 10 per cent, ex eluding tho first £IOO per annum ii salary, or £2 per week in wages in the case of each member of the staff, and alsc excluding wages paid to part-time troublemen. The committee pointed oui that, together with a reduction of £25 \i the honorarium paid to the chairman, Mr J. Dean, which Mr. Dean had askee should be made, this would mean ap proximately £SOO less per annum in tlie board's outgoings. Of this sunt, £3O( affected the revcntie account. By the 20 per cent reduction in interesi the board would benefit to tho extent o £3IOO, of which £2400 was already bein{ remitted to consumers by the 5 per ceil increase in discount applying from Marcl 1. There was thus a balance of £7OO which, with the reductions in salaries would make £IOOO altogether • availabL from April 1 for reducing charges foi power. Depreciation Payments Tho committeo further recommendec that the board immediately take steps t< convert the whole of its loans under the recent. Act to a new issue bearing 4£ pe cent interest, thereby saving consumer: an additional £475 per annum, and thai the board endeavour to secure the depart ment's consent to a cessation of payment! to the depreciation reserve amounting t< £3500 per annum. In regard to loan conversion, mentioi was made by the secretary, Mr. S. P Day, that the Local Government Loan! Board expected to draft at a meeting tlii; month forms on which local bodies coulc apply for approval of conversion schemes Each local body would need to formulats its own scheme. In the case of the Frank liri board, bearer bonds had been issuec and the names and addresses of the pres ent owners had had to be ascertained ir order that they could bo invited to con vert. The list was now practically complete. The Act provided that any holdei of a bond not converting would have onethird deducted from his ' interest payments. "If payments to the depreciation reserve are to continue, I estimate that by the time this board has all its loans repaid, it will also have a depreciation fnnd ol £IOO,OOO, for which it will have no particular use," said Mr. Day. In moving the adoption of the committee's recommendations, Mr. Dean said that the board had already made nine reductions. in its charges for lighting and eight in its charges for power for milking. The motion was carried unanimously. Bulk Supply Charges .It was decided to ask all the power boards in the Auckland district to support representations for a cessation of depreciation reserve payments once the fund had reached an amount equivalent to 10 per cent of a board's assets. It was also agreed to continue the agitation for a reduction in the Government's charges for bulk supply of electricity, and for the bringing into force of the recommendation of the National Expenditure Adjustment Commission that charges for bulk supply be uniform throughout the Dominion. Tho question of what form further reductions in charges in Franklin should take was left to a meeting of the board in the new financial year.