SECOND EDITION POWER BOARD FINANCES

Poverty Bay Herald, Volume LV, Issue 17067, 27 September 1929, Page 8

SECOND EDITION POWER BOARD FINANCES

MR. BALL’S STATEMENT LOAN MONEYS EXHAUSTED An important, statement was made to-day by Mr. P. I!. Hall, chairman of tiie i'iivmy (Jay Electric Rower Hoard, respecting the finances of the hoard, and the adjustments in the programme of the board rendered advisable by the fact that the Joan moneys formerly at the disposal of the board had been exhausted. The chairman's statement was as under : “As our loan moneys are completely exhausted atjd we have in addition spent some thousands of pounds out of revenue on capital construction, 1 deem it advisable to sound a note ui warning regarding future expenditure on capital construction.

wAny further sums paid out of revenue for capital works will seriously embarrass our liiifuicitil position at this critical stage of our development, when having praeticallv* completed the main programme of reticulation in the district, we are rapidly reaching the stage where our revenue account bears the full burden of all interest and other charges, which hitherto have been partly shared by Joan account. “It is necessary that our construction staff he reduced almost immediately and future extensions instead of being erected at short notice as has been the board’s policy up to now will have to wait until time and money are available. “It is, of course, regrettable that we should find it necessary to call a halt- in capital expenditure -when wo are so anxious to extend the beneiits of electricity to every person in the district, but, to further strain our resources by continuing to construct out of revenue would be a suicidal policy. Until we have consolidated our position on the present capital outlay, or, alternatively until further loans are authorised, T feel that we must concentrate on perfecting our organisation and increasing our revenue by building up- the load on the existing .reticulation.

Tfns load is steadily increasing. New consumers arc linking up and old consumers who have experienced some of the benefits of electric service arc installing more appliances as their finances permit. Still it will be some time before we approach a full return for our capital outlay. By the end of _ the current year we shall be in a position to prepare our estimates,- both of receipts and expenditure, with a degree of confidence, and while I do not wish to raise too strong a feeling of optimism I think the board will bo able to carry on a progressive policy and retain the confidence of the ratepayers. The balance of the current year will be well spent in perfecting our permanent organisation and in consolidating tjio work wo have carried out up to the present time.”

Summing up the report, tho, chairman remarked that there was a big scope for work within the area at present reticulated, but it would be inadvisable at present to branch out on new service lines beyond that area.

The report was adopted without discussion.