ELECTRIC POWER COSTS

Poverty Bay Herald, Volume LV, Issue 17437, 8 April 1931, Page 6

ELECTRIC POWER COSTS

WELLINGTON’S POSITION COUNCIL ’g POUCY CRITICISED The fact th‘at f although the Wellington City Council lias made a profit of £50.000 from its electric supply service it has not made a reduction of charges to consumers lias been the-subject of some criticism. The reason, it is ex : plained, is due to the policy of the Council in spending revenue on capital Works instead of raising loans. Tlie Dominion comments on the position as follows: “In these days it should lie a matter for congratulation that; the Wellington City Corporation has b‘edn aide to clear £50,(700 from its electric heating, 'and power supplies.to the public.' .It will natural; ly occur to most people to ask why this very satisfying profit cannot be distributed in dividends to the public by way of ft reduction in .the price of current.. The reason given by the Mnyoris that of this £50,000, a sum of £IO,OOO is being devoted to ‘a purpose approved’ by the council, ’ while £40,000 is being used for capital purposes in the building of noW Stations instead of doing this work; by %ay of loan. The Wisdom of making capital extensions out, of revenue at life present juncture may be‘ doubted. The public‘is looking in all directions for reductions in the cost of jiving ’and might have been given the benefit of this handsome result. A 10 per cent, reduction in salaries and wages ought to be accompanied by a commensurate fall in prices in order that a fair balance may be struck.” This comment is of particular interest to Gisborne at the present time in view of the Power Board loan poll on Friday. •The rejection of the loan will result in the local board requiring to carry out capital works from revenue and thus militating against the ‘prospects of reducing the charge for current.