WAITAKI POWER BOARD.

Otago Daily Times, Issue 19967, 8 December 1926, Page 6

WAITAKI POWER BOARD.

As a certain amount of misunderstanding seems to exist in some quarters as to the operations and results of the board’s business, the following information has been obtained, the figures being taken from the board’s audited accounts. Though the results are most gratifying; it is pointed out that during the next two or three years the whole of the newwork in both country and town will be a charge (for interest, sinking fund, man* agement etc., as well as, of course, tht running costs) on the working account, and until the load is well developed over the whole of the area served the profits can scarcely be expected to be maintained. It would appear that previous to the board taking over the < system from the Oamaru Borough Council some £6OOO of profit had been made by the borough, but no allowance had been made for depreciation or replacement fund, the board taking over at full cost price. The board’s gross profit for the year ended March, 1925, was £5960, out of which interest and sinking payments were made of £1835, leaving £4125 for disposal. For the year ended March, 1926, the gross profit was £6087, and the interest and sinking fund payments were £3468, leaving £2619 for disposal. . The net profit for the year is actually somewhat leas than in the previous year, but owing to an amount of_ £2700 having been allocated for depreciation in the previous year and the balance carried forward, while no depreciation has so far been allocated this year, it is necessary to compare the balance sheets to arrive at the true state of affairs. The above, however, are the actual facts, and easily ascertained from the audited accounts of the board. The board is treating its net profits somewhat conservatively, knowing that there is a difficult period ahead. It may be stated also that the board has reduced its charges for current, and it is a fact that cooking can be had at very favourable rates, varying from 2d to Id per unit, while other charges have alsc been adjusted in favour of the long-houi and good-load user. Further, it has beer stated that some amendment of rates may be possible when Government power is available. At present the board is generating the whole of its current, paying the borough at the rate of over £IOOO per year for water, and a much higher price for the equivalent power generated by oil. On the whole, it would seem that the board’s operations are being conducted in a practical manner, and though some slight anomalies no doubt exist, the district can congratulate itself on the prudent policy of its board and on the success so far achieved. The board is engaged in a very great scheme, but this, of course, is being paid for out of the loan authorised for the purpose, and has nothing to do with the working or running account, the details of which have to be kept entirely separate and are subject to close supervision by the Government Audit Department. Proper overhead and management expenses are chargeable only to the running account, and these are all carefully recorded. Other management and engineering expenses are, of course, part ot the development scheme, and are paia. for out of the loan.