ELECTRICITY SUPPLY

Taranaki Daily News, 17 September 1934, Page 8

ELECTRICITY SUPPLY

PROSPECT OF CENTRALISATION. THE ENGLISH SCHEME. A survey of the English Central Electricity Board scheme with reference to the industry in New Zealand was given by Mr. W. E. Seckex- (Waitomo) in an address at the conference of the Electric Power Board and Supply Authorities’ Association of New Zealand, secretaries’ branch, on Munday. “In a careful survey of the possibilities of the Central Electricity Board’s functions being adapted to New Zealand conditions, it is very likely that most, if not all of the expected opposition from the city supply authorities will not materialise. It is possible, and, of course, desirable, that equitable conditions should be imposed in such a scheme that would ultimately benefit all,” Mr. Seeker said.

‘‘Turning to the cost of the Government schemes in New Zealand, admittedly they have all cost more than was estimated, and it is only equitable that this ,-xcess cost should be borne by all sections of the community. Further, it is assumed that the capital charges on the Waitaki scheme and the ArapuniStratford line- have been capitalised to date. When the capital charges on a further £2,000,000 have to be provided for in the electricity accounts this will mean an increased expenditure to meet of, say, at -east £lOO,OOO per annum. As Waitaki has only one new consumer in view, Dunedin City, it is apparent that the extra expenditure can only be met out of increased load from the existing supply authorities. “The provision in the Central Electricity Board’s tariff providing for a reduced k.w. demand charge for increases in load, would undoubtedly act as an incentive to all supply authorities to conduct intensive load building campaigns. “Mention has been made of a practice that is inimical to the full and proper development of electricity—the subsidising of unemployment relief, rates, etc., out of electricity profits. Leaving aside the rights of consumers to those profits by way of reduced charges—by diverting electricity profits for unemployed relief—a local body tends to assume responsibility for a national problem. It has the effect of increasing the unemployment taxation already levied by the Government, and also has the further effect of segregating the unemployed in the cities. Another aspect is that the relief of rates is the equivalent of dividends paid by private enterprise, with the added advantage of being tax free. “Criticism has also been made of the exemption from income tax of the profits of supply authorities. If the probable effects of the imposition of income tax were analysed, it would appear that the Treasury coffers would not benefit to any great extent, as supply authorities, after fulfilling the compulsory and permissive requirements of the Act, would not be likely to budget for surpluses that would largely be swallowed up in taxation.

“Any movement toward taxing local bodies would include taxing the profits (if any) of any municipal gas undertaking and it would naturally follow that a local body having both gas and electrical undertakings would desire to combine the ‘wo and run them as one concern so that losses of one department could be set off against the profits of the other.

“It can safely be stated that we in New Zealand have only touched the fringe of electricity development. Experiences of other countries show a phenomenal consumption per head of population. In Winnipeg, for example, in 1932 the consumption per head was 2087 units. Per consumer it was 4321 units. We are selling an ‘article’ that the public wants, and our expansion is only limited by the consumer’s purse, and it is quite likely that in a few more years, if a progressive policy is adopted, that the .Government will have to provide more power to cope with the growth in load.” ,