POWER BOARD

Southland Times, Issue 22011, 10 May 1933, Page 3

POWER BOARD

ANNUAL MEETING. MR HINCHEY ELECTED CHAIRMAN. The annual meeting of the Southland Electric Power Board was held yesterday, Mr W. Hinchey presiding over the following members:—Messrs J. T. Carswell, W. McChesney, G. Wraytt, P. Arnott, W. Norman, A. A. Mac Gibbon, A. le H. Hoyles, T. Golden and E. K. Sim. On the motion of Mr J. T. Carswell, seconded by Mr A. le H. Hoyles Mr Hinchey, the acting-chairman, was unanimously appointed chairman for the ensuing term. Mr Hinchey briefly returned thanks for the confidence placed in him by members. MONTHLY MEETING. Immediately following the annual meeting the monthly meeting was held. Several matters relative to rating were discussed and dealt with, and a deputation representing non-reticulated ratepayers was received. Messrs H. F. Blatch (Te Anau) and W. Kennedy (Fortification) headed the deputation, and in putting the case for the non-reticulated ratepayers, made a request for relief from the rate. They sponsored several alternatives as a means of relief, and were given an assurance from the board that every endeavour would be made to meet them on a basis of equity. “You can rest assured that the board will do its best to the best possible advantage,” said the chairman. Chief Engineer’s Report. The chief engineer (Mr L. B. Hutton) reported as follows for the month ending April 30:— Power Station.—The output for the month was 2,247,250 units, giving a high daily average of 74,908. On Friday 28th, the output for 24 hours totalled 91,250, which is the biggest day the station has had. On the same day, also, from 5.30—6 p.m., the peak recorded was 6120 k.w. and 5990 k.w. showed for a full hour from 11—12 a.m. on 22nd.

The rainfall recorded at the village was 8.72 in, and there was in addition a slight fall of snow. The rain in the catchment area must have been much greater. At the end of March the lake level stood at 10ft 7in, but commenced to rise on April 2 up to lift, despite a heavy discharge through the gates. The river gauge at this period recorded 22| inches above zero. The lake showed a rising tendency up to April 24, although heavy discharges were arranged from 12th. Despite this, it rose to lift s£in, at which stage, the river gauge was 30 inches above zero. At the end of the month, the lake level had been brought down to 10ft lOin. The average powerhouse consumption was 320 cusecs, and the river discharge was 1442 cusecs; so that the unused water amounted to 1122 cubic feet per second. Transmission Line.—The annual overhaul of this was completed, and it is satisfactory to be able to report that everything appears to be in good order. Where the elevation of the line changes frequently, as towards Monowai, it was necessary to do a good deal of retying; but on the flats and straights, all the original work has stood excellently. The cable had shifted in the ties in degrees according to the strains on adjacent spans, and new chafing pieces were inserted in such positions. At other points the friction of the cable against the insulator has caused damage, and in the worst of these places, new lengths of cable have been inserted. Winton Area.—The storm of the 26th visited the southern and south-eastern part of the Winton area—i.e., along the coast from Tuatapere to Riverton, and in the district south of a line through Winton to Otautau, and long hours had to be worked to get the services back to normal. The construction party worked part of the month on transmission line. They overhauled the branches radiating from the Oreti School comer, and resagged one complete G.I. line. The branch running to Mcßae’s at Hokonui was also done. Crossarms, etc. were salvaged from Glencoe and Dunsdale. Five service lines were run in various parts of the district, and a large transformer moved from Lochiel to Fairfax.

Invercargill Area—The chief occurrence of the month was the lightning storm of April 26. This swept over the greater part of the area, and blew a total of 41 high tension fuses, apart from minor damage. It was necessary to muster all available personnel to attend to the faults, and other work had to wait. The construction party replaced a burnt pole at Taramoa, a broken pole at Riverton and Bainfield Road, and a weak one at Collingwood. Part of the Oteramika line was restrained, and trees cut there and at Bainfield and Mabel Bush. Seven service lines were erected, two being for ranges, one for a motor, and four lighting. The position of a transformer at Oteramika was moved to serve a new range, and two others were replaced due to showing signs of breakdown. A short length of line was erected under guarantee at Otatara, and 100 chains salvaged near Oteramika. Despite the boisterous conditions, substation operation was normal, there being only 22 trips in all, with two fairly long stoppages of 1 hour and 2 hours. & e Area.—This area luckily escaped tke lightning storm, so its record is more or less one of normal operation. There were two major interruptions, one caused by a broken wire on No. 1 feeder, near Balfour, putting the feeder out for 17 minutes; and the other on No. 3, beyond Heriot, where a line came adrift from its insulator, and burnt a pole top. The heavy winds at the end of the month caused frequent momentary trips. The construction party continued their work in the Mataura Borough, the area worked being south of the theatre and school. A further 147 consumers were connected to the Board’s supply, making a total of 250. There are, in addition to this, 39 consumers whom we commenced to supply early in 1932. Seven service lines were erected, chiefly in Gore, and an air break switch and some bird guards were erected on No. 6 feeder. Guards were also fitted to the main transformer bank in Gore. House Wiring.—Eight new consumers were secured in the month, bringing the total to 9529 not counting Mataura, which will be reserved until the end of June. Eighteen installations were connected, and 64 extensions made to old installations. Four motors, of a total horse power of 16, brings this total up to 3058. The load connected in the month was 78 k.w. Re-inspect-ing of premises continues, 56 more having been completed. The total done to date is 3613. Finance Committee’s Report. The Finance Committee reported as follows:— After reviewing offers of premises at Gore suitable for offices, etc. and after examining a proposed layout of the office requirements the committee decided to recommend that Mr Hinchey, Mr Carswell and Mr Mac Gibbon look over the premises at Gore and submit a definite recommendation to the board. Matters relative to staff group insurance scheme, the deductions of premia from wages and the question of the board granting a subsidy were deemed to be questions for the whole board. The report was adopted. The matters of group insurance and subsidized insurance were referred back to the

Finance Committee for further consideration and report. Resolutions Adopted. The following resolutions were adopted:— “That the principle enunciated in the English Appeal Court judgment in Broken Hill Proprietary Ltd. v. Latham and others be applied to interest in respect of the board’s five per cent, and or 6 per cent debentures which may hereafter become payable in London through payees exercising their option of payment in London.” “That with the precedent consent of the Minister of Finance negotiations be opened up with the National Bank of New Zealand, the Government broker in London and the board’s London agent, with a view to (a) offering debenture holders an extension of maturity date to 1954, with a State guarantee and payments in sterling in consideration of their agreeing to a reduction of interest to a rate not exceeding 4| per cent. (b) Advising payees that relying upon the principles enunciated in the Broken Hill case payment of 5 per cent, and 6 per cent, interest coupons will be made in New Zealand currency or an equivalent amount in English currency—payees to be appropriately informed that if they do not consider that the board is acting within its legal rights the board will be prepared to join them in having the matter decided by a test case.” 1933-34 Rates. A' motion was moved by way of special order that one third portion only of the general rate shall be payable in respect of non-reticulated properties. This will be confirmed at the next meeting. The general rate was fixed at fifteen sixteenths of a penny on the basis of the unimproved value; estimated to produce (after advances have been made for non-reticulated allowances) £43,630. Report on Wellington Visit. The chairman (Mr Hinchey) and the secretary (Mr Campbell) presented a joint report on their visit to Wellington to transact business of importance to the board. “In the first place,” they stated, “we wish to report that the Hon. Adam Hamilton was particularly helpful to us. He spent a great deal of time in arranging interviews and in accompanying us to the Prime Minister and to the Minister of Finance. Mr Hamilton was keenly anxious to help us in every way possible. We wish to place on record our appreciation of what Mr Hamilton did for us. We also wish to thank Mr R. A. Anderson for his kindness in permitting us to fully review to him the board’s estimates and reports in connection with 1933-34, and for interviewing the Public Trustee on our behalf. “As to the deputation of public body representatives which assembled to wait upon the Prime Minister. We conferred with the delegates at the preliminary meeting at the Mayor’s room in Wellington but for reasons which will be explained to the board we did not accompany the deputation. We were able to arrange for a private interview with the Prime Minister. The following is a brief memorandum of matters as placed before the Prime Minister and before the Minister of Finance (Mr Coates) during our interview with them:— “(a) The board wishes the. Government to assist it to a decision in regard to the question as to whether the board’s interest is payable in New Zealand currency in London. Exchange now costs the board £20,625. The board cabled to London as follows:—Tn view of Appeal Court judgment delivered in favour of Broken Hill Proprietary, see Law Times Journal seven, telegraph whether London legal advisers consider that board’s interest can be paid in London in New Zealand currency. Consult legal advice. On the sth instant the board received the following cabled reply:—‘Taken opinion Sir Gerald Hurst Kemp who appeared Broken Hill case with information our disposal considers interest payable New Zealand currency, but court judgment here before acting, essential decision obtainable before September cost reasonable advise.’ A saving of this exchange would enable the board to cut down the farmers rates by 50 per cent. “(b) The board wishes the Government to assist it to get a reduction in the interest on its London loans. The ,

position of the loans is as follows:— £ Debentures 6 per cent raised September 1921 due 1954/ option 1936 750,000 Debentures 5 per cent raised December, 1923 due 1954/ option 1936 750,000 Total £1,500,000 The annual payments are—- £ (1) at 6 per cent 45,000 (2) at 5 per cent 37,500 £82,500 £ A reduction of 20 per cent. would amount to 16,500 The cost of transfer to London per telegraphic exchange rate of 25 per cent, is £20,625; 20 per cent, reduction would amount to 4,125 Total representing 20 per cent reduction of interest and exchange £20,625 “The above reduction would be equivalent to a rate of .415 of one penny in £l. In this connection the board wishes to know whether the Minister of Finance could see his way clear to give a State guarantee for a board conversion loan in London provided the State guarantee did not extend beyond the date of the present guarantee, i.e. 1954, or whether the Government could suggest any other way of helping the board to a successful conversion. “(c) By Section 34 of the Finance Act, 1928, the Minister of Finance was empowered to pay to the Southland Electric Power Board by way of loan out of the Consolidated Fund a sum not exceeding £15,000 at 5J per cent. The said amount was duly paid to the board on the security of an agreement which creates a floating charge all the property of the board the said agreement being a debenture in the sense in which that word is ordinarily used. Treasury ruled last year that the provisions . of the National Expenditure Adjustment Act, 1932, as to interest reduction and/or stamp duty, did not apply to the said, debenture and that therefore the interest, i.e., per cent, was payable in full. Relying upon Section 4 and other provisions of the Local Authorities Interest Reduction and Loans Conversion Act, 1932-33, the board respectfully applies for a reduction in the rate of interest on the above security. The board will be thankful if you will grant a reduction to 41 per cent per annum. “(d) The board wishes the Government to assist it to a reduction in the interest on the loan, of £150,000 borrowed from the Public Trustee who holds all the debentures except £lOOO which is held by the Lyttelton Harbour Board. The present rate of interest is 6 per cent less 20 per cent. The board is anxious to obtain a reduction to 4| per cent. “Pending our making a statement at the board meeting we submit the following brief summary of results of our various interviews:— “Request regarding State Guarantee: The Prime Minister and Mr Coates both gave favourable replies. “Reduction of Interest on Government Loan: A reduction of 20 per cent, on the £15,000 loan was obtained. “Reduction of interest on Public Trust Loan: The Prime Minister promised to see the Public Trustee.. Mr R. A. Anderson has since interviewed the Public Trustee on our behalf. It looks as though we will have to take this matter to the conversion formalities as per the recent Act. “Loans Board Matters: A favourable view was taken in respect of the board’s applications. - “Minister of Public Works: The Minister was out of Wellington, but Mr Hamilton discussed the various matters with us. He will confer with the Minister of Public Works on our behalf. “Monowai Road: A fairly' complete

investigation was made in conjunction with the Public Works Department. There is now no question in our minds as to the Wallace County Council’s responsibility for the road. It is definitely a county road. “General: A number of other points were taken up with different people in Wellington. A representative of the Engineers’ Association interviewed us regarding the necessity for a conference of Power Board delegates prior to the next session of Parliament. Various important amendments to the Act are required. “The question of payment of London interest in New Zealand currency was most strongly supported by the chairman of the Auckland Transport Board who was keen to associate himself with us in this matter. The report was approved and adopted and a resolution thanking Mr Hamilton for his assistance to the chairman and secretary during their visit to Wellington was carried, members expressing themselves as being pleased at what had been accomplished.