CAUTIOUS BUDGET

Poverty Bay Herald, Volume LXIII, Issue 18975, 27 March 1936, Page 4

CAUTIOUS BUDGET

POWER BOARD FINANCE DEFICIENOY EXPECTED THIS YEAR'S ESTIMATES A deficiency of £1905 is provided for ,in the! estimates of receipts and expenditure of 'the Poverty Bay Electric Power Board for the" financial year 1936-37. submitted to the monthly meeting to-day by the manager, Mr. V. E. Sanders. * The manager estimated the income at £57,555, and the expenditure at £59,460.

It will be remembered that in each of the past three .or four years the board had budgeted cautiously, and has anticipated deficiencies which did not materialise, as the result of new projects launched by the board proving highly successful.

Details of the estimates for the new financial year were given by Mr. Sanders to-day as under:

"Revenue. Sales of electricity, £57,123; rental of equipment, £144; property rents, £144; hire charges, £l2; interest on fixed deposits, £B4; interest on advances, £4B; total, £57,555.

"Expenditure.—Power from Public Works Department, £16,440; generation costs, £1920; sub-stations and distribution, £9276; public lighting-, £276; management and general, £6972; interest on loans. £12.876; sinking funds and repayments, £8640; depreciation, £1080; bad debts, £6O; capital expenditure out of revenue. £960; reserves, £960; total, £59,460. "Estimated deficiency for 1936-57, £1905. NEW SCHEDULE RATES DETAILS OF CONCESSIONS In connection with the prospects for the new financial year, Mr. Sanders supplied the following resume of the cost to the board of concessions to be made in the revision of the schedule of charges for power, details of which are given on page 11 of this issue: — "I estimate the aggregate annual value of the proposed reductions at about £4500, made up of: Lighting, £1987; heating, £955; cooking, £650; power, £719; community lighting, £SO; contingencies, £l39;' approximate total, £4500. Forty-six per cent, of this amount would be £2070.

"If adopted, whether as a whole or in an amended form, I suggest that the revised tariff be brought into operation as from the normal readings made in September, 1936," stated Mr. Sanders. "The effect of this would be that part (about £2070) of the annual value of the reductions will fall within the financial year ending March 31, 1937."

The finance committee of the board tabled a recommendation for the adoption of the managers proposals regarding the revision of power charges.

When the report was placed before the board, the chairman, Mr. F. B. Pall, stated that the position for the coming year was rather uncertain owing to the question of labour costs, «na climatic influences' which might affect the consumption of current by the freezing works. The freezing works' consumption this year had been much below expectations, owing to the effect of the weather during the summer, but other items of revenue had shown a substantial improvement in the estimated income. Mr. Ball suggested that the board should first deal with the revised scale of power charges, the estimates being deferred until iater.

Mr. S. H. Phillips stated that the new proposals had been carefully considered by the finance committee. He had been impressed with the fact that over the past few years the estimates had been prepared on a most conservative basis, and also by the steady improvement in revenue. With regard to the postponement of the benefits ot the new tariff until September, Mr. Phillips stated that if the benefits were to be given immediately, it would be impossible to make so substantial a reduction in the costs to the public. Mr. Phillips moved the adoption of the recommendations. SATISFACTION AT PROPOSALS Messrs. H. H. DeCosta and 0. W, : Izod commended the proposals, which, they felt, would be received with satisfaction by consumers .throughout the district. Both complimented the manager upon the manner in which the proposals had been prepared. The chairman also expressed satisfaction concerning the fact that it had been found possible at this stage' to recommend a comprehensive reduction in the tariff. The manager mentioned that during the next six months there would be a theoretical application of the new tariff, which should bring to light any circumstances which may demand ~ attention for the redressing of anomalies before the _ tariff comes into effect. The motion for the adoption of the recommendations was carried unanimously, the chairman remarking that when the new tariff came into effect, the board's charges would compare favourably with those of-any other board in the Dominion.

In moving the adoption of the estimates, the chairman commented that the current year's results had been satisfactory, and he was quite satisfied that there would be no deficiency- for the year.

The manager mentioned that this was the first occasion on which he had felt justified in estimating for an improvement in electricity sales. Mr. Sanders gave a brief review of tho respective items of revenue and expenditure, paying particular attention to the provision for reserves in the estimates for the year, rather than leaving the question of reserves until the end of the year.

. The opinion that there would be no need to worry about the estimated deficiency was expressed by Mr. Phillips, who pointed out that the revision of the tariff would give further encouragement to the consumption of electricity in tho district.

The chairman's motion was carried unanimously. ■