POWER RATING PROBLEM

Taranaki Daily News, 20 July 1929, Page 23

POWER RATING PROBLEM

WHICH IS THE BEST SYSTEM? RESCINDING OF RESOLUTION. The application and effect of different rating eystems was • debated at yesterday’s meeting of the Taranaki Power Board. ■ At the. previous meeting ft resolution moved by Mr. Moss was adopted to the effect that representations be made to the Minister of Public Works to have t.he Act amended so that the board could strike a general rate without it being a uniform rate over the whole district am] a sub-committee was instructed, if necessary, to proceed to Wellington ae a deputation to the Prime Minister and -Minister of Public Works.

At yesterday’s meeting, in accordance with due notice, Mr. Knuekey. who was absent when the resolution was carried, moved to rescind this resolution for the reason, he said, that it was unnecessary for the board to seek an amendment to existing legislation. He considered the availability system was most suitable and thought the expense of sending a deputation to Wellington unwarranted. He also regarded the system suggested in the resolution to be cumbersome and unworkable. Mr. C. E. McGuinness seconded. “I do not think the resolution passed at our last meeting is a very dreadful one,” said Mr. H. J. Marchant in opposing the effort to rescind. He was Knuekey had not been present to have heard al] the arguments advanced, and to have participated in the discussion. The resolution, he said, did not commit the board to anything, but was simply looking forward to the time when the availability rate now in force would prove useless and ineffective. Having passed the resolution, it became a serious matter when a move was so promptly made to rescind it. Continuing, Air. Marchant said the availability rate would yield less and less as time went on, and there was always the possibility of a general rate. In that case the board should have power to use discrimination in its application and the resolution merely aimed at getting legislation that the board could avail itself of later on. He thought there was nothing vicious in the resolution and that it should be allowed to stand.

A TIRESOME PRCK.’EDURE. Tt is rather tiresome that we have to o'O through all this discussion again, said Mr. N. H. Moss. He hoped Air. Knuekey was not going to make a practice of endeavouring to rescind resolutions approved of in his absence. Mr. .Moss regretted that Mr. Knuekey had "not set forth any pertinent facts _or <>iven valid reasons why the resolution should be rescinded. Perhaps it was that Mr. Knuekey thought the resolution should be opposed because it was advanced by the Stratford members in accordance with their election pledges. Mr. Knuekey’s arguments seemed to be “let us hope" for the best,” “we put our trust in optimistic hopes for the future.” In any case he was under a misapprehension because the resolution simply sought power to levy a general rate without making it uniform over the whole area. The board should not wait until the situation arose and then try to take steps to meet it, because it would take twelve months to get the Act amended. At present, if the board wanted to levy a general rate, it would have to do so over miles and miles and over people living in back areas where they were getting no benefit from the scheme, ami where it would never pay to reticulate. “It manifestly will be unfair to strike a general rate over such properties,” said Air. Moss. There were three rating systems to be considered. Firstly, the"availability rate as at present in force. Taranaki was the only board in New Zealand using this system. Secondly, there was the uniform general rate which might include districts twenty miles from powef lines. Thirdly, there was the system of differentiating whereby people not in reticulated areas paid only a very small proportion.

NON-R ETIC LL AT ED ARE AS. Mr. Moss then traced the origin of the availability rate, pointing out that it was introduced on behalf of the Southland Power Board, but that board had already reverted to the other system. When in Otago recently, Sir Joseph Ward had given a very sympathetic hearing to the representations of the people living outside the reticulated area of the Southland Board, and for that reason the speaker did not think much difficulty would be experienced in getting the legislation asked for in their own resolution.

After referring to the election pledges of the new members, Mr. Moss said he would be sorry to -see- the board in the position of having to strike a general rate over the whole-of-its area. At the i last meeting only the chairman had had I his vote recorded against the resolution, i and he was rather-surprised to see Mr. i McGuinness seconding the motion to rescind. Mr. McGuinness: I voted against the resolution, the same as the chairman. Mr. Moss Well the .minutes do not show that. However, I accept your assurance. Continuing, he said only £4200 was being collected in rate from people taking no current. *‘l ask you all,” he usaid, “seriously to consider if you are going to strike a genera] rate; are you going to strike it over all your area, even though some of your ratepayers are receiving no benefit? I say it is unfair.”

After making a •personal explanation, Mr. McGuinness thought a matter such as that covered by the resolution should be handled through the Power Boards’ Association, and not by an individual board. Mr.'J. Dobson also explained his position, saying ho would not support a general rate until the whole of the board’s reticulation had been completed. Mr. Moss had misunderstood him on this point. THE CHAIRMAN'S VIEW.

The chairman (Mr. H. G. Carman) objected to the resolution because he said it was unnecessary. The board could make a differential rate at present. In fact it already possessed practically the whole of the powers sought in the resolution, only in a different form. It could strike a general rate of a certain amount over reticulated areas and a lesser amount over non-reticu-lated areas. At the last meeting he had opposed the resolution because he could not see why the board should endeavour to have ‘legislation amended at its own expense. It was questionable whether the board could legally devote money to sending a deputation to Wellington to promote general legislation applicable to all boards in New Zealand. The position in Southland was that a general rate of id in the £ had been struck over reticulated areas and

a special reduction of 50 per cent, was made over unreticulated areas. Mr. Moss: That means that the unreticulated areas have to ’pay something. To Mr. Marchant, the chairman said a general rate would apply over the whole of the board’s inner area, including the Clifton county. 'Speaking in reply. Mr. Knuekey expressed regret' at Mr. Moss’ remarks regarding an effort to upset a resolution palsed in his absence. “Mr. Moss can get that idea right out of his head, and also the idea E.at I may have collaborated with other old members of the board before entering my notice of -lotion,” he said. Mr. Moss: I am glad to hear that. Mr. Knuekey 1 don’t think you would have a ghost’ of a chance to get your proposed legislation enacted, and even if you did I doubt if the board would make use of it. I am in favour of the availability rate, and even .if there is a small deficiency this could easily be made up by increasing the price of current slightly. He pointed out that backbloek settlers, even, though they might not be able to get the power to tlieir homes, made use of the advantages of electricity when they came to town. In conclusion he contended that if the price of current were raised slightly, it would have the same effect as was aimed at in-Mr. Moss’ resolution.

A comment upon the cost involved brought the retort from Mr, Moss that he was prepared to pay his own expenses to Wellington, ‘'because I believe in the amending legislation,’ 1 he said. On a division, Messrs. Moes, Marchant, I B.i \:J J'tfci