COST OF UNDERTAKING.

Taranaki Daily News, 12 July 1929, Page 8

COST OF UNDERTAKING.

The arbitration price was .£125,632, plus costs of arbitration £6500, plus the amount yet to be spent to complete reticulation, £16,000. That totalled £145,500. Mr. Bone had been prepared to advise. Again, Mr. Taylor asked, why ? Only payable roads would be reticulated, the board had declared. The point was, said Mr. Taylor, there were no payable roads in Hawera that were unreticulated. Mr. Bone was reported to have said at Okaiawa that the revenue expected was £5O a mile. The company had done reticulation work for less revenue than £5O a mile. Wabnate West area was closely settled. The settlement, however, was composed largely of Maoris, and there were many water-power plants. Yet, without any house-to-house canvass, alleged. Mr. Taylor, the board glibly announced that there “would” be revenue. Would the board frankly say what steps had been taken to ascertain the revenue there?

What about availability rate prospects? The risk of a rate was reduced to vanishing point, the board had been reported as having said. Mr. Bone had said that- at the end of the third year,

after reticulating all unreticulated roads in the company’s area, reticulating in Waimate West, selling water-heaters, water pumps and street lighting, the revenue would be £33,390. But the cost would be £31,900. That meant only £1490 between the ratepayers and the rate! Either that or an increase in the charges. The figures of the board showed that, »f the board worked the company’s area, plus the Waimate West area, and with no adventitious aid of ranges, etc., the loss would be £lB9O. Revenue from ranges had been estimated at £l5OO, from water-heaters £1250, from pumps £2OO and from street lighting £3OO. Where wore the extra ranges coming from? asked Mr. Taylor. Ranges provided a payable load but were not payable. The Gas Company’s advance showed that electricity could only just compete with gas. Where was the wizard who would wave the wand?

“UNPROFITABLE LOAD.”

Water-heaters provided an unprofitable load and it took a Jong time to heat water or very heavy elements to conduct energy, plus heavy lines, etc. 4 time switch reduced efficiency. If heaters were on all the time up rose the peak of the load. The board would pay the Government on the peak load tor the quarter year. The company, although a purveyor of ■electricity, advised consumers to use chip heaters. The board would be operating much more extensively than the company had done. The query in Mr. Taylor’s mind was, “How will the board run the extended business at the same annual charges as the company did in the company’s present smaller field?” Those charges the board had taken from the company’s balance-sheet. One meter reader was used at present. He took 25 to 26 days to work the present area. Another would be needed by the board with a car in addition. The manager of the company was at present overworked. He had the assistance of three girls and the company was about to appoint an accountant. Mr. Taylor challenged the board to run the concern as economically as the company. At the arbitration proceedings the board had declared that the meters required testing. Well, if that were so, the board’s costs would need increasing by £4OO, the salary of a tester.

Mr. Bone had asked, “why continue to allow the company to pay dividends when the ratepayers can get a reduction?” said Mr. Taylor. “Oh, sanguine Mr. Bone,” he continued, “why this pious hope?” Mr. Stevenson had said that if the loan were turned down the area would fall into the jaws of Tariki.

Mr. Stevenson replied that Waimate West wanted power and would go to Tariki sooner than be debarred.

Mr. Taylor: Oh, well, they can get it from the company. No need to get Tariki; the company will reticulate tomorrow if given authority, or the day after the loan poll is turned down. Applause greeted the conclusion of Mr. Taylor’s address.