SIXTEEN POWER POINTS

Taranaki Daily News, 19 August 1929, Page 6

SIXTEEN POWER POINTS

RATEPAYERS’ QUESTIONAIRE DETAILED REPLIES GIVEN. S. TARANAKI ELECTRIC SCHEME In the course of his address to Auroa ratepayers on Friday night, Mr. J. B. Murdoch, chairman of the South Taranaki Power Board, stated that the ratepayers’ association which had been formed recently had sent 16 questions to the board. There was no reason why the board should not make its replies publicly, and he therefore proposed to read to the meeting copies of the questions and of the replies sent by himself as chairman of the board. The questions and answers are as follow: — (1) On what basis and relevant restrictions has the proposed board's revenue been arrived at? The board’s estimates of revenue have been based on (a) the company’s income as disclosed in its balance-sheets. Though this business will unquestionably increase, present day figures for revenue have been adopted. The present business is a rapidly growing one, as is evidenced by the increased sales of current disclosed in the balance-sheets, and by the increasing profits. The present business will increase very materially in the future and will show increasing sales of current. In the board s estimates (which are conservative) nothing is allowed for the increased revenue from the increased business to be secured in the future, (b) As to the estimates regarding areas at present not reticulated at all, the estimates are based on the experience of our consulting engineer, whose estimates for other boards have been amply justified by experience. He went thoroughly over the areas in question some time ago. His work for other boards has proved conservative. The real point is that in the process of electrical load development adequate service must be given to the public, and the board is out to give the public that service. THE BOARD’S OPERATIONS. (2) Will the board publish its last two years’ balance-sheets? The board is ready and willing io make any of its figures public. The following puts the matter in a nutshell: The board’s expense of formation and preliminary matters was £2261 Ils. Then came the arbitration. We have paid £1323 17s Sd and we have still to pay accounts incurred, Which are still outstanding, totalling £6331 19s ad. The total cost of the arbitration was accordingly £7655 17s Id. Including the preliminary expenses, the total expense to date is £9917 8s Id. Some time ago the board collected a rate of one-eighth of a penny, which yielded £3223 6s 9d. (3) Has the board been approached by any district or groups of residents asking to bo allowed to link up with outside supply authorities? If so, what has been the result?

(a) The board was approached by part of the outer area (which is not affected 'by the present loan proposal) and with the consent of the board and approval of the Government the land between the Waitotara and the W'henuakura Rivers was added to the WanganuiRangitikei Board's area, (b) Another portion of the outer area desired to follow suit, but the Government was unwilling to further curtail the outer area, and thought the Wanganui-Rangi-tikei area was large enough without more being added. The board itself was not inclined to see its outer area further diminished, (c) At various times the board received requests from the Taranaki Bower Board for permission to link up a school house and several residences. These appeared to bo desirable and were granted, (d) More recently one application was declined on the ground that the board would' soon 'be in business, (e) In 1925 there were negotiations between the Kaponga and Opunake supply authorities and this board, but nothing came of them. The board’s policy is to preserve its district intact as allotted by the Government to secure the important advantages of load diversity, lower average cost of electricity, and lower average cost of administration.

(4) Since the board came into operation has it vetoed or limited the company in regard to any proposed reticulation ?

I have personally arranged for various .companies and individuals to be served by the company, and this is wellknown. The company has not on any occasion brought to the board any specific proposal to reticulate any street or road. Prior to the arbitration, there was correspondence between board and company as to certain matters not dealt with in the statute and requiring adjustment on settlement. The company sought a free hand to make such capital expenditure as it thought fit, for which the hoard would have to pay. The board as the prospective purchaser had, of course, a direct interest in the style of work to be done and whether it would be profitable or not, and accordingly invited the company in any case where it proposed to extend ire reticulation to submit particulars to show the cost of erection, details of design and prospective revenue to be earned, so that the board would bi in a position to decide whether or not it would be desirable to do the work. USE OF THE LOAN MONEY. (o) What parts of the board’s area not reticulated has the board decided to reticulate out of loan moneys? The main area to be considered is the unreticulated portion of the Waimate West. There Is a small portion of Hawera County also. The board’s policy is to reticulate and to establish efficient and economical electrical service wherever tame will prove self-sup-porting. Where an assured and profitable loan can be secured the board will put in the line. In the loan proposal sufficient money is provided, which will be uplifted when required. The board

is not raising all the loan money at the start, thus saving interest as far as possible. • (6) If the £187,000 o r £200,000 loan be raised may the board raise further moneys ? The loan is for £187,500. The board would have power to raise only an additional £5OOO (approximately), being 10 per eent. on that part of the loan other than the cost of the company’s undertaking and expenses. This could be raised only after the whole £187,500 had been raised, and it is most unlikely that it would be required. The exact amount would require to be settled with the Auditor-General. No other loan moneys can bo raised without a statutory proposal being submitted to the Loans Board and a poll of the ratepayers. (7) Will the board explain the effect and incidence of its rating powers? and (8) Is any distinction drawn between separate holdings owned by one owner and as between properties requiring electricity and otherwise? No rate of any kind will ever be collected by the board if the loan is carried. The rate mentioned in the proposal (588/lOOOths of a penny) is simply pledged as the statutory security for the loan. Every power board has power to levy a general rate and an availability rate. The general rate may be struck over the whole area, but hero no rate will ever be collected. The object of the availability rate is to force people to take current, and it is used where a board has to create a market for its electricity. This does not apply in South Taranaki because the people are taking the current—£26,ooo worth —and 'because the market is created. This bogey was exploded by Mr. Bone. In no case will the South Taranaki Power Board force anyone to take current; that is the settled policy of the board in any case. (9) As between board and company, which will stand depreciation of company assets since September last, and who will get the profits since September? The company, of course, gets its profits till it goes out of business. It would be most unfair to the company if it were otherwise. While they run the business they should get the profits. As to depreciation, on settlement the company is to allow the board an agreed sum for depreciation of its assets. SETTLED POLICY OF THE BOARD (10) Does the board propose to change the voltage of the present system? If so, what will be the result in cost to (a) board, (b) occupiers? The board’s settled policy is to. give to the people of its district an efficient and adequate electrical service. As the load increases and requires it, the present high tension system will be gradually changed to a standard 11,000-volt system. This is what the boaid proposes to aim at, but the completion period is indefinite. The estimated cost to the board of doing this in the future is £6600, and is allowed for in the estimates under the item of “cost of alterations,” etc. No expense will be incurred by occupiers. This policy is a progressive onb, and will result in improvement of the system generally. (11) Mr. Bone says that the offer of £67,000 was made after careful consideration by the engineer. Mr. Pacey has said that it was made to bring about a breach in negotiation and nas not a real offer. Who is correct? The board’s offer was £67,000 plus the value of stock and tools, £5825, a total of £72,825. This covered only physical assets and nothing was included foi goodwill. The board had then no access to the company’s records, and the board knew of certain liabilities (later the company in its second offer asked an indemnity in respect of these). At the hearing, the board contended that £85,908 should be the price for the physical assets, but this figure included assets unknown to the board when the offer was made, and the £85,908 offer was after full investigation. Both the men referred to were right. The offer was made after careful consideration, and the object in the event of nonacceptance was to create a breach to make the arbitration possible and get ahead with the business. (12) Is it lawful for the board to license the company to distribute energy? If so, has the board ever considered doing so? It would not be lawful for the board to license the company, as already explained in the Press. Even if it were lawful, it would be bad policy from the people’s point of view as the goodwill of an increasing business grows each year. It is now or never; if the company is not bought out now it never will be. Yes, the board considered the matter and. was advised by its solicitors. - , The board’s policy of buying out the company and of functioning in the interests of the people has been very well known for years. Recently there was an election of six of our board members, and every one was returned unopposed. The statutory advertisements oi the fact that the board was going to place its proposals before the Loans Board called for any objections to be sent in. Not a single objection was received. . The board’s policy is and has been to function for the people and to give service. The people are with us as the uncontested, election and absence of objections and general public opinion unquestionably shows. LICENSE FOR COMPANY.

(13) If the poll be turned down, may the company apply for a V? r °' ticulate and supply Waimate West? The poll will not be turned down. It will be carried by a substantial majority The company could apply for a license all right, but it would nov get it. The board will look after the interests of Waimate West. (14) Can the power board give a guarantee that none of the company's charges will be increased? . Of course the board can give no assurance of what the company will do in the future. The company has spent more than the board in the arbitration: I hear over £lO,OOO (i.e., more than the whole expenses of tne board since its formation in 1025; our expenses of the arbitration amounted ft «nly

£7655). The company is authorised by statute to charge up to Is a unit. Will it want to get its £10.006 back from the people? If the poll is not carried it is quite possible that the company will increase charges. But the board . will reduce prices from time to time. That is an absolute fact. First, the board will not increase any of the present charges. Second, the board will reduce charges to consumers from time to time. (15) Has the board settled yet whether it will make a minimum charge per month for motors, or does it propose to charge a flat rate per horse-power? The board’s policy will be payment for the amount of electricity actually used by each consumer as registered by h meter. The present minimum(monthly charges will be reduced. A flat rate per horse-power charge in our ease is considered obsolete by the board. (16) Does the power board endorse Mr. Bone’s statement that the expenses in running the board will not exceed those of the company? While the board is simply running the same business as the company, the board’s expenses of running the business will not exceed those of the company. As the business increases, and as the reticulation is extended on the lines already indicated, the board may have to employ a further meter reader or an additional lady clerk. Whatever increase of staff is rendered necessary to give efficient attention to the growing business will certainly be arranged for, POWER BOARD POLL. POLLING PLACES APPOINTED. The convenience of ratepayers, has been the main consideration in fixing polling places for the poll to be taken on September 5 by the South Taranaki Power Board. Five central polling places have been appointed where any ratepayer may record his vote. These are the Hawera borough chambers, the Hawera county office, the Waimate West county office, the Normanby town hall and the Riverdale factory. Any ratepayer jn the whole power district may vote at any of these central booths. In addition there are five polling places for Waimate West ratepayers only, five for Hawera County ratepayers only and one for Manaia ratepayers . only. This makes sixteen polling places in all. The following table shows clearly where ratepayers may vote: —Hawera borough ratepayers may vote at any one of the five central booths. Hawera county ratepayers may vote at any one of the five central booths or at the halls at Okaiawa, Tokaora, Tawhiti and Whareroa or at the stewards’ stand at the racecourse. Waimate West county ratepayers may vote at any one of the five central booths or at the halls at Otakeho, Oeo, Auroa and Kapuni or at the Kaupokonui dairy factory. Normanby town district ratepayers may vote at any one of the five central booths. Manaia town district ratepayers may vote at any one of the fix e central booths or at the Manaia Town Board office. The matter at stake is of great importance to South Taranaki, and the board hopes that every ratepayer will exercise his vote. RADIO AT HAWERA HOSPITAL CONSULTING ENGINEER'S PRAISE. In his report to the Hawera hospital radio installation committee the consultengineer, Mr. C. R. Russell, Christchurch, who has had experience of similar installations in America and Europe, expressed entire satisfaction with, provided at Hawera, which he intimated would compare favourably with, any he had seen. - The report states that except for the isolation wards, the installation is complete, and after reviewing tho conditions, gives the opinion that tests carried out show the plant completed fulfills the conditions in every respect and the material and nature of ibw* complies in every particular with ths specifications. “I would like to state that your contractors have in my opinion, done excellent work, carrying out the undertaking in a manner which shows tnit they haw considered the conditions laid down m the specifications to be a minimum rather than a maximum to be obtained, continues the report. “With regard to the wiring and other installation work carried out by the sub-contractor, Mr. W. W. Davy, this has been done in a first-class manner, in fact the work has been to a considerably higher standard than required m the specifications. , “I would mention, in particular, , the work carried out in the wards, where the cables have been laid, and caused so carefully and with such regard for details that, in my opinion, the appearance of the wards has been improved. A close examination of the aerial installation is well worth ivhile, and show’s the great care and foresight that Mr. Davy has used throughout the work. “While there are many much larger installations, I can assure you. that the radio installation at Hawera will, to say the least, compare favourably with any similar installation in Europe or the United States.” SOCIAL AT WHAKAMARA. CREAM SUPPLIERS’ FUNCTION. The return social and dance tendered by the Whakamara cream .suppliers. to the factory suppliers on Iriday evening in the district hall proved a most enjoyable and successful gathering. Patronised by visitors from Hawera and the surrounding districts in audition to Whakamara residents, the function went with a swing throughout the evening. Dancing to music supplied by the Mascot orchestra, consisting of Mrs. Lang cy and Mr. Mills, was interspersed with a number of musical and instrumental items. Songs were given by Mrs. Barclay (Alanutahi), Mrs. L Buchanan (Whakamara), and Mr. W. G. Simpson (Hawera), Miss Harvey and Mr. It. r. Page being responsible for the. accompaniments. Recitations were given by Mrs, Buchanan. Extras were played by Mr. Page, while the duties of master of ceremonies were well carried out. by Mr. E. A. Langley. Supper was provided by a committee, who were also responsible for the decoration of the hall. During the evening Mr. H. R. Bcott, chairman of the Whakamara Dairy Company, thanked the cream suppliers for the enjoyable entertainment they had given, the performers find other visitors for theii’ attendance.