POWER BOARD ECONOMIES.

Timaru Herald, Volume CXXIII, 13 October 1926, Page 8

POWER BOARD ECONOMIES.

MB ANGLAND’S MOTION.

VALUATION AND COSTS ASKED FOB.

A motion’moved by Mr W. Anglaud, calling for valuation of the Board’s stocks by an independent vainer, created considerable discussion at yesterday’s meeting ui the South Canterbury Electric Power Board. Mr Anglaud’s motion was as follows : “That a valuation of all stocks lied in store at Geraldine, Tcniuka and Wuiinato be made by an independent valuer, appointed by the Board, which valuer is to be outside of tho Board's employ, which valuation is to be in the bands of the Board by next, meeting. That the engineer be requested to furnish this Board with the number of miles of reticulation work done in the Geraldine and Teniuka districts, which report is to be in the hands of the Board hy next meeting. That a return bo furnished showing the cost of material and equipment per mile used in construction of work of lines in Geraldine and Temuka districts. That the Board liold a special meeting to go into the cost of overhead expenses in connection with the carrying out of the work above mentioned in clauses 1,2 and 3, and tlie possible cost of future construction work.”

Mr Angland said that in a_sking for qn independent valuer lie did not wish to create the impression that he had no faith in the Board's staff. On the contrary, lie had every faith in them, but considered he was following the usual practice of all big concerns in such matters. They had received a report from Mr Templin that the construction cost in Geraldine and Teniuka was £362 per mile, but what he required was a return showing cost ■of material and equipment per mile, II they liad that information and ; the value of stocks in store, it would show-, with cost of material purchased, exactly what the overhead costs were. To his mind overhead costs were too heavy. Ho also desired a special meeting to go into those estimates, and discuss the question of possible savings in future construction work. He' un- ! derstood that at the present, time only fifty men were employed outside,, and I yet four engineers were required, as well as a foreman and canvassers. Mr Templin received £2500 a year, and ho had no fault to find with that I charge, and considered that the work J had been well done. He did not see, I however, the necessity of emp'oying the j ether engineers at a total cost of £3700 per annum. Added to that was fhe cost of maintaining,Tho head office, £1700; Temuka and Waimate offices and staffs cost £IOOO, and the new buildings in course of erection would also cost thorn approximately £IOOO to keep up. Motor-car and lorry expenses totalled approximately £2OOO, while legal expenses and claims made against the Board during the year brought the total expenditure up to between £ll,ooo,and £12,000 per year. He considered that mruv of these items could be considerably reduced. The total revenue amounted to only £4242, and lie considered, a reduction in expenses was obviously.' necessary. He also thought .that four.'engineers were not necessary. ■ The chairman: “They are employed by Mr Templin. Put them down as one.” .. Mr Angland “Well, you can make a trinity of them if you like. but. the cost comes back to the Board.” Mr Angland went on to suggest- that the branch offices shou’c! be eliminated. He contended that rates could be collected on their behalf by the various local bodies at a cost ot per, cent., which would represent a saving of hundreds of pounds to the Board. In bringing the matter up, 1 he would impress upon .theni that he had every faith m the staff, but considered that savings could be effected if the Board went thoroughly into the returns he asked should be submitted. Mr O. E. Kerr' said that he would second tho resolution, providing Mr Angland would delete the suggestion that an outside valuer bo employed. Mr Angland said he was quite prepared to leave the work to the Board s staff. ■ ■ Mr Kerr said it was necessary to wateli expense as closely as possible, not only to give the ratepayers eyerv confidence in the Board, but also to enable the Board to construct lines at the lowest possible charge to consumers. Mr J. C. South said that ho did not think that tho time was suitable for tho Board’s staff to go to so much troublo to prepare such a report. The matter would ho one of some expense, and the time of the staff would also be considerably tabeu up at the expons© of other work Mr •S. I. Fitch said that as Mr Anglaud had agreed to the Boards staff doing the valuation it had made tho motion valueless. Personally, he did not see tho necessity of it being carried into effect. .Mr C. J. Talbot said that Mr Angland had created the impression that Mr Temp'in was being paid £2500 and the other engineers in addition, which was not the ease, the other two srinccrs being employed by Mr Templin. Tho Board was now in the midst of construction work, and the revenue was constantly being built up. He thought that the information could readily ho given if it was of any use, but did not think that a special, meet--inc was necessary to consider it. Mr Wallace said that ho always believed in information being supplied if necessary, but at the same time did not think that the time of the staff should bo taken in supp'ying unnecessary information for members of the Board. Personally he would oppose the motion. The chairman said that ho was absolutely opposed to ithe motion. Sir Angland had said that ho wanted. to keep down expense, and the very thing lie was do'.y was piling up expense. He thought Mr Angland was merely looking for publicity. Tho engineers referred to were employed by Mr Templin and not hy the Board, as statod by him. He considered tho whole thing was uncalled for and unnecessary. Mr Angland said that every local body had auditors, and ho considered that it was only in the interests of tha Board to have an outside valuer. Tn regard to overhead expenses, he would remind the chairman of the £4OO lost over tlie Waimate claim, when a -settlemcnt could have hern effected; also f lic loss of £750 on interest op a fixed deposit of £57,000. In addition there was also the upkeep of tho Board’s cars, which wm-e a continual expense. Witii £150.000 still to be spent, ha considered it, was only a reasonabls thing tn go into the matter of effecting savings wherever they could. They were a knowledge of the business, and they should now employ tli"t knowledge to rectify previous mistakes. No business man with commercial knowledge would talk tho wav the chairman had that morning. Tt was ihc ove’-hoad (‘barges that wore hearing down the big commercial concerns today. Tn impressing that iioon tha chairman, he won’d leave the respoosibilitv of the matter on him and the Board to docido whether or not. they should attempt to effect economies. The motion, which was altered wi t,H the consent of the mover to delete the request for an independent, valuer, was defeated by 7 votes to 2.