NO AVAILABILITY RATE

Taranaki Daily News, 22 August 1931, Page 16

NO AVAILABILITY RATE

TARANAKI BOARD'S DECISION

MEETING LOSS FROM RESERVES. RELIEF OF FARMERS OBJECTIVE. REDUCED INTEREST SUGGESTED. That no availability rate be struck for the current year was a proposal put forward by the chairman (Mr. H. G. Carman) and adopted that the meeting of the Taranaki Power Board yesterday when the estimates for the year were under consideration. Mr. Carman advanced as his reason for the proposal the fact that under the prevailing conditions the rate was pressing hard on many unfortunate people and he would like to allord them some relief, if only at least for this year. If the board faced a loss of revenue on the year’s working, taking into account the loss of supply to New Plymouth, it might become necessary to strike a rate next year. It was of no use to strike a low rate, continued the chairman; the only alternative to not striking a rate was to strike the same rate as in last year. But. in that case Mr. Carman considered the board would have to give a much wider range of exemptions. EXTENT OF EXEMPTIONS;In the first' place, Mr. Carman said, there would have to be.’a total exemption on all vacant sections as pie--viously defined by the board. Other exemptions would include, any others who in the opinipn of the board were entitled to whole or partial exemption under clause 4/1928, such as property caught on a back road with buildings so situated as to make service lines too I costly, and farms that were milking by I water-power plants installed before the I board was in It position to supply electricity. ' Also entitled to relief were those in the Eltham borough using gas installed previous to the boards operating. Not onlv were these people paying the availability rate but they were suffering a double imposition by having to pay the borough rate to make up any deficiency in the gas works account. Ratepayers using electricity paid their share of loss through that rate and worked out their availability rate in the use of electricity, while the gas user paid foi his gas, his share of the gas losses and in addition his availability rate. The Eltham ratepayers owned their own gas works which previous to the advent of the power board were a payable concern, but which now were showing a loss. The Eltham borough valuation was approximately 10 per cent, of the total valuation of the board o district, excluding, Clifton, and last year it provided £4921' in power board revenue. Had the whole of the district produced an equal percentage the total revenue would have been £49,210, or sufficient to pay all expenses and. do without any rate. WOULD REVENUE BE .LOST? “The other point,” said Mr. Carman, “is: Shall we lose any revenue owing to current not being used to eat up the availability rate ?” The only way the board could definitely ascertain, that was to try it, continued, the chairman, It did not appear to him reasonable to strike a rate that people would be unable to pay. The majority of their ratepayers were “hard up against it” and it was questionable whether the board should add to their troubles. / Without allowing for revenue from the rate the estimated amount the board would be short in revenue was £3270. Their estimates of expenditure were on the safe side and might possibly be £lOOO less. “If a rate, is struck Id will be no good,” Mr. Carman added. “Personally I think it not advisable to strike a rate this year as I think' many people are in a desperate position.” Mi'. Carman said lie would allow informal discussion before a motion was tabled. Mr. R. J, Knuckey’ said he could not agree as he felt that the revenue was liable to shrink if they omitted the rate. He would very much like to "cut it out, but be felt that the position might not be any better next year and the effects would be felt just as much. On these grounds lie would vote against the proposal. Mr. C. E. McGuinness expressed the i same opinion and suggested that the i matter be deferred until they had seen the result of Mr. N. H. Moss’ suggestion to endeavour to have the interest reduced. - Mr. H. J. Marchant said the board had certain reserves and it was a question whether they should not use some of'those funds now. He knew" of the great amount of distress throughout the farming community and in view of the urgent need for relief lie thought that the board should give them that relief even if it were only for one year. Mr. Moss said he could not see his way clear to support a rate this year. The power board was a local body super imposed on’ other local bodies and it was difficult enough for ratepayers to pay the rates Mo those primary local bodies. He thought the sooner the board brought the . concern on to the basis of the consumers’ paying for the thing the sooner it woffld know where it was. REDUCTION OF INTEREST. If the nekt year was to be as bad, Mr. Moss said, some readjustment of the board's internal workings would have to be made. The board had to pay 6 pe? cent, interest on loans amounting to nearly £460,00-0, but if dairy prices continued to fall, the board would not be able to pay 6 per cent. He could not see why the board should not open (negotiations for relief by means of intcicst on a lower basis. Mr. Moss had conic to the conclusion that the board had to take the risk of not striking a rate this year. It might have an effect in discouraging the consumption of electricity by users but an appeal must be made to the loyalty of consumers to use current; if the revenue fell in the absence of an availability rate that .rate would have to be re-imposed. Mr. Moss felt that such an appeal would meet with a loyal response. The majority of the farm nonconsumers were lessees and others who could not afford to put in power. . In concluding Mr, Moss said that it things had not improved by next yearjie Would: mot be surprised to aeo .effpi'M made to have national conversion rtrisecL ■ ■- ■ ‘

“RATEPAYERS FULLY LOADED.” Mr. H. A. Foreman said he could not see hoiv ratepayers were going to pay as they were already fully loaded. Mr. J. Dobson thought the rate should be lifted for this year. Mr. Moss moved that no rate be struck for this year and that any deficiency be made up out of net revenue account. Mr. M. Gernhoefer said he would like to see the rate omitted, but there were some who as soon as the availability rate was worked, out went back to hand milking. Mr. Knuckey said the resolution had his sympathy but he felt the revenue would fall if they abandoned the rate. “I can see that the motion -will be carried and I hope it will be successful,” ho added. “Mr. Moss’ idea to have interest reduced is excellent.” The chairman: “If we can persuade the lenders to agree to a reduction of interest, well and good; but I have little sympathy with legislation to compel a reduction against what is a contract. Our sinking funds are invested, with the Public Trustee at 51 per cent, and any resolution should incorporate that we accept the same’rate of interest reduc■tiou (on this as wo agree to pay ourv/W ' motion was carried, Knuth-cy a.fid McGuinness ■ voting against.