POWER COSTS

Timaru Herald, Volume CXLI, Issue 20442, 12 June 1936, Page 7

POWER COSTS

TEMUKA FAVOURS REDUCTION INDUSTRY HAMPERED That strong support would be given by the Temuka district to any efforts to reduce power costs, along the lines suggested by Mr C. E. Kerr at the monthly meeting of the South Canterbury Electric Power Board on Tuesday, was revealed in opinions obtained from various sections of the community by a “Timaru Herald” reporter yesterday. Speaking in support of Mr Kerr’s advocacy of lower charges, Mr T. H. Langford, a member of the Power Board for the Temuka district, said that he had contended all along that it would pay the Board handsomely to reduce its charges. The difference would be more than made up by the increased business that would result. The Board had already made a reduction in charges and the encouragement afforded consumers and possible consumers had been reflected in the extra cash return. He was convinced that the time was coming when the Board would have to further reduce costs and make representations to the Government for a decrease in costs to supplying authorities. Mr Langford said that there were at present 92 supplying authorities in New Zealand and that the overhead costs aggregated £50,000. He was looking forward to the Government taking some action, for the position was absurd. If the supply of electricity was controlled by the State there could be one price for all New Zealand and that not higher than the lowest price ruling in the Dominion to-day. Cost To Borough The point of view of local bodies was emphasised by Cr. W. H. McMillan, a member of the Finance Committee of the Temuka Borough Council, who mentioned the reference in yesterday’s ‘‘Timaru Herald” to the borough’s application for several of the street lights to be discontinued. He said that the Council spent £4OO annually out of revenue from the general rate, which amounted to £3OOO. At the last meeting of the Council, when the Lighting Committee had suggested cutting out the lights at certain little-used corners in the borough, it had been shown that the Council would have to reduce costs to some extent and members had agreed that it was most unfortunate to have to penalise ratepayers in order to be able to keep within the revenue. “The new estimates, to be considered at the next monthly meeting, show that a considerable extra sum will have to be raised by way of rates, notwithstanding the fact that the amount allowed for new material has been reduced to only £200,” said Cr. McMillan. "If the position was reversed and we could spend £4OO on material we would be able to carry out a great deal of work that is really necessary for the general welfare of the town. The Temuka borough being one of the largest towns in the South Canterbury area, I would be in favour of the Council giving the suggestion made by Mr Kerr its wholehearted support. Mr Kerr’s remarks were the same as have been made by the Temuka Brough Council over and over again, and the suggestion is most timely. The Power Board’s agreement with the Government expires in 1937 and now is the time for Temuka to get busy.” The case of the secondary industries was presented by Mr J. T. Smart, managing director of the Temuka Flourmilling Company, who said that the high charges were absolutely detrimental to the industrial life of South Canterbury. The secondary industries were handicapped considerably by the high overhead costs, influenced greatly by power charges, and could not compete on the same footing with manufactories in the larger centres. The cost per ton of milling wheat was considerably higher than in Christchurch and, he understood, Timaru, which bought Its power In bulk from the Board. It was distinctly unfair that a service which was supported nationally should be available to one centre at cheaper rates than to another. It had often been said that power was going to waste at Waitaki, yet an industry like flourmilling was restricted in the hours in which electricity could be used. Obviously the position was most unsatisfactory and was in need of review. Detrimental To Industry One section of the community that would welcome reduced charges would be the dairy farmers, said Mr Hughes, who is secretary to four co-operative companies in the Temuka district. The cost of power for operating milking machines and separators was a heavy burden to private consumers. The factories used a considerable amount of electricity during the season and directorates would also be appreciative of any reduction made.