NEW PLYMOUTH'S ELECTRICITY.

Taranaki Daily News, 23 May 1934, Page 6

NEW PLYMOUTH'S ELECTRICITY.

That the New Plymouth electricity department is able to record a net profit of £22,203 on the past year’s working is testimony to the wise and businesslike administration of the committee under the chairmanship of Mr. P. E. Stainton, and the efficient work of the staff. At first sight one is tempted to suggest that the substantial profit justifies a reduction in light and power charges for the coming year, but on examination of the figures and consideration of the general position one realises the cogency of Cr. Stainton's arguments advocating a distribution of the profits in another manner. In justification of the committee’s action in placing £10,750 in the reserve account Cr. Stainton pointed out that the ratepayers of the borough had a capital liability in connection with the electrical undertaking of £268,950, and should any major trouble occur at the headworks the ratepayers stood to lose a large sum. For that reason it was desired to build up as strong a reserve as possible, the money in this account to be used (assuming that no serious trouble occurred) for the liquidation as soon as possible of the £84,940 London and Australian loans which on account of exchange and other difficulties could not be renewed on very favourable terms. A further step for the relief of the ratepayers was the transfer of £5OOO from last year’s profit to the council’s general account for the reduction of the rating burden. The reason actuating the committee in its actions—the relief of the ratepayer—is an admirable one, for the general ratepayer has never been in more urgent need of assistance than at present. The burden of rates on properties which in normal times yielded reasonable rents or business returns has in many cases become almost intolerable owing to the drastic diminution of returns from the property. Indeed, in a number of cases property owners would be glad if they could dispose of their property for a song, or even give it away, in order to be relieved of the rate liability on it. Even the residential property owner with his one house section is finding the utmost difficulty in meeting his rate demands because of his reduced income, and the position is not improved by the added obligations in having his property connected with the recently-installed sewerage system. There is a strong case for substantially increasing the sum of £5OOO transferred from the electric light account to the relief of rates, even if it means doing so at the expense of the amount transferred to reserve. The possibility of serious disaster at the headworks is fairly remote, and at the risk of reducing their insurance in this direction most ratepayers would probably prefer an increase in immediate assistance.