RETICULATION OF BACK COUNTRY

Southland Times, Issue 23818, 16 May 1939, Page 7

RETICULATION OF BACK COUNTRY

SUGGESTED SOLUTION OF DIFFICULTY LEVY ON REVENUE OF SUPPLY AUTHORITIES (United Press Association) NEW PLYMOUTH, May 15. A solution of the difficulty of reticulating sparsely settled back country areas because of the low proportion of revenue to the cost was advanced at the annual meeting of the Taranaki Electric Power Board today by the chairman, Mr N. H. Moss, who proposed a small percentage levy on the revenues of all supply authorities throughout New Zealand, the money to be used to subsidize the payment of annual loan charges on reticulation into sparselysettled rural areas. The Taranaki Board is now receiving requests for an extension of the reticulation into the remote and more sparsely-settled areas where the available revenue cannot possibly enable an extension to be self-supporting. Until the board has been able to consolidate its position and further reduce tariff charges, it is impossible to undertake unprofitable reticulation. This question has been receiving attention in many parts of New Zealand for some years now and any suggestion put forward so far as a solution to the problem invariably suggested some form of assistance from the Government. “As the Government has undertaken the generation of the bulk supply in New Zealand and left the retail sale of electricity to the power supply authorities, I think the problem should be solved by the power supply authorities themselves,” said Mr Moss. “If the remoter country areas are to receive the benefits of electrical supply the whole burden should not fall on rural power boards, but should be spread over the industry on a national basis. A solution of the difficulty could be achieved by means of a very small percentage levy on the revenues of all supply authorities throughout New Zealand, both town and country and these proceeds with proper control and management could be used to subsidize the payment of annual loan charges on reticulation into sparsely-settled rural areas.” In support of his suggestion Mr Moss quoted an extract from the 1938 Public Works Statement in which the Minister of Public Works (the Hon. R. Semple) said that although so far as the people actually supplied were concerned the ’ Dominion’s electricity schemes could be considered successful there were still some 20,000 homes not supplied. He had given thought to making it available to these where it could be done reasonably economically, but had not been able to evolve a fully satisfactory method as other problems were allied and the whole question needed special attention at an early date.