POWER FOR CLIFTON

Taranaki Daily News, 6 November 1934, Page 3

POWER FOR CLIFTON

URENUI GIVES SUPPORT. “AN EXCEPTIONAL OPPORTUNITY.”

Support was given by ratepayers of the Urenui district last night to the proposal to raise a loan of £ll,OOO to reticulate the Clifton county area for the supply of electricity from the Taranaki Power Board. After the matter had been explained and several questions answered a motion was passed expressing appreciation of the efforts of the members of the board, and promising support at the poll on Wednesday. Mr. C. Foreman, representative on the board in the area, presided over a representative attendance. There were also present Messrs. N. H. Moss, a member of the board, W. J. Treston (secretary) and B. H. Goldsmith (engineer). Mr. Moss said he felt that he was talking to a band of converts, but in order that there should be no misunderstanding it was advisable to explain the loan proposals. Years ago loan proposals had been placed before the ratepayers of the district and had been defeated. When he went on the board six years ago he made up his mind that he would not favour any loan unless it was absolutely sound, as this was. He doubted if any other part of New Zealand had had the opportunity of receiving power on such favourable terms.

The money for reticulation of about 26 miles of line could be obtained at 3J per cent., against 6 pel- cent, which was paid for the loan money for reticulating the rest of the board’s area. Moreover, the district was in the fortunate position of not having to pay anything towards the cost of the main transmission line, as the line to Waitara would suffice, and the contract made with Waitara had been so designed as to carry the load of that transmission line. The estimated cost of the reticulation was between £9OOO and £lO,OOO, and it was also proposed to erect a transformer station and “trouble man’s” residence at Tikorangi. The total loan required was £ll,OOO over a term of 20 years at interest which was expected to be 31 per cent. It would be repaid by half-yearly instalments.

RATE AS SECURITY. A rate would be necessary as security for the loan, but would never need to be collected unless everything went 100 per cent, wrong. The loan over the board’s area, exclusive of Clfton, was £462,000, and the rate struck as security had never been collected. The Loan Board insisted that guarantees should be obtained from the prospective consumers. That had been done, and the scheme had been favourably reported on by the Public Works Department. The annual interest and repayment of principal would amount to £762 and the guaranteed revenue to £lB7B. After providing for a trouble man as well and meeting, all expenses there would be a balance of £5OO and £6OO available to the board for the power supplied. The Power Board had passed through difficult times, but it had now got over its financial troubles and was able to balance its budget. The reduction of expenses due to loan conversion, the linking-up of Inglewood and Waitara boroughs and the prospects of the Clifton county made the future of the board look bright. There was a definite advantage in securing power from a power board, which had to return any profits after providing necessary reserves to the consumers in the way of reduced charges, whereas a borough council could transfer its profits to one of its many departments. ’

COST OF INSTALLATION. Replying to Mr. C. Rumball, Mr. Goldsmith said that the cost of installation of lights would be under 30s a point, in addition to the cost of the service line, the first chain of which was provided free. Replying to’ Mr. S. A. Managh, Mr. Moss said the board’s charges for light and power in the area compared very favourably with those of any other power board in country districts. A board supplying country districts could not supply power as cheaply as one supplying a city, and very frequently the board supplying a city passed on some of the advantages to its country consumers.

Mr. H. A. Foreman asked whether the consumers in the Clifton area would receive power for milking plants at the same rate as that at which the central area received it now. Mr. Moss said it was the desire of the board to supply the power as cheaply as possible. In view of the fact that for nine years ratepayers in the central area had been paying 4ld for such power and moreover, had borne the whole cost of the construction of the power house, etc., while those of the Clifton area were not asked to guarantee anything in that direction, it was considered advisable to charge the Clifton area 4Sd. However, if the supply increased as anticipated it was expected that eventually the district would be placed on the same basis and charged 31d. Mr. Foreman said the question of charge for power would play an important part in whether farmers milked by electricity or petrol power. He recognised the advantages of electricity, which owing to his proximity to the transformer supplying the Tikorangi factory, he had been able to obtain. Mr. Moss said that while the board had not definitely decided the charge to be made for power in the Clifton area, it could be safely assumed that it would be 4id. for the first year. There was now no danger of shortage of power even in the driest weather, as the board was now connected with the Government supply at Mangahao and Arapuni., • Mr. C. Wilson said he had been appointed to a committee with Mr. Elliott. They had discussed the matter with the board from all angles and were satisfied that the scheme for the supply of electricity to the area would not only be a good tiring for the district but for the board also. Ratepayers could confidently vote for the proposal. On the motion of Messrs. Wilson and W. H. Fuller it was resolved “That the meeting expresses its appreciation of the efforts of the board to reticulate the area, and affirms its intention to support the proposals at the forthcoming poll.” A vote of thanks was accorded the members of the Power Board for their efforts. A suggestion was made that the opening evening should be held at Urenui, but it was stated that possibly Tikorangi for its proximity to the sub-station might be the more convenient.