TARANAKI POWER BOARD FINANCE

Stratford Evening Post, Issue 40, 22 June 1929, Page 3

TARANAKI POWER BOARD FINANCE

OPTIONAL SYSTEM OF STRIKING RATES. (MINISTERS to 32 ASKED TO AMEM) THE ACT. _. Mr N. H. Moss stated at yesterday's meeting of the Tarapa&i Power Board that the estimates for the year showed a deficit of £7OOO, which would have to be met by rate or .'out of the accumulated funds, which amounted to £80,840. It appeared to him that it should be possible to reduce the levy on ratepayers. At the same time it was clear that, the Board had not reached "tue stage when it could do without a rate. This should be made clear tf ratepayers who were holding back from taking current under the impression that the change in th personnel of the Board would obviate the necessity for any further availability rate. GENERAL RATE. t A general rate of two-sevenths of a penny .would make up the deficit, but in the past the policy of the Board had favoured ' the availability rate." At the recent election the Stratford County candidates had pledged themselves to support a system combining the' general and the availability rate. This system could be brought in very easily. It just needed an amendment of the Act to enable the Board to strike a general rate without it operating all over the district and to strike an availability "rate also. The availability rate was gradually losing its value and in time it would be quite useless.

KEEPING FAITH. •When the availability rate became useless, and there was no provision for rating .except by general rate, the Board would have, to break faith i and Strike a general rate. The availability rate would I have to'be struck for this'year. The i speaker could not say offhand what the amount should be, but he thought it could be reduced. Mr 'A. Dqbsqn said he opposed a general rate before the reticulation is' completed. Mr Moss: What will you do when the availability rate becomes useless, j " Mr Dobson: I hope all the reticulation will be completed * before then. TJie chairman (Mr H. C: Carman) said it was clear that the availability i-ate would have to be struck for'two years. Then, if the sale of current increased as expected, he hoped the Board would be able to d 0 withqut a rate altogether. The Board needed £I2,QO(J per annum more r'evenue before 'the (Bqard(s business would be on a self-sup- ; pqrting basis, and if it did not come ' from the sale of current it must be raised by rate. .

'CURRENT LIMITED. Mr H. J. Marcliant saM it was being assumed that the Board had unlimited current for sale, but -in the past the supply had broken down E|vei'y new consumer meant that- in .the i&ry weather the supply would break ,down the sooner. With consumers coming in as they were it ; meant that when the Government! power came through the Board j would have to buy Government power. The profit to the Board on this power would he much less than that on* its own power. } On the motion of the chairman it was decided that the year's deficit be made up by levying the availability rate, and that the Finance Committee report to next meeting on the amount of the rate. Mr Moss moved that the Board make representations to the Minister bf Public Works to have .the Act amended to enable the Board to strike a general rate without it being struck over the Avhole district, and that for this purpose, the chairman and Messrs Ma'rchant and Moss be a sub-committee to frame thet necessary representations, and, if necessary , to proceed to Wellington during the coming session as a deputation to the Prime Minister and the Minister of Public Works. Mr Gernhoefer seconded. The chairman thought the Legislature would not consider the matter and it would be waste of time ■ to approach Ministers. If the optional system was adopted ratepayers would elect the system under which they would pay least or pay no rate at all. The motion was carried.