ELECTRIC POWER BOARD

Thames Star, Volume LXIII, Issue 17579, 19 March 1929, Page 5

ELECTRIC POWER BOARD

UNFAIR TRADING. PUSHING PRIVATE ENTERPRISE. WRITTEN BY 1928 COMMITTEE. In common with many other forms of State enterprise, electric power boards have shown a marked tendency to exceed their intended functions. Under the first empowering Act of 1918, these Goiml were set up chiefly for the purpose of supplying cheap hydro-electric power. No exception can be taken to that proceeding. The complaints of the private trader—complaints both * numerous and well founded—arc directed against the abuse by the boards of what may be called their secondary powers and frictions. These complaints may be classed under two heads, one being against the exemption of the boards from many forms of taxation to- which their private competitors are- subject, and the other against the failure c»l the boards to observe in their dealings the ordinary practices of trade. Under tho first head a majority of the boards, being themselves “local authorities” possessing rating powers, are exempt from land tax, income tax, rates and certain forms of stamp-duty, while under the second head they may make and levy rates to cover excess ,of estimated expenditure over income. They have also wido powers of borrowing by way of bank overdraft. Cramping Trade. The position in regard to the failure of the boards to observe the ordinary usages of trade is even more serious. It is stated that in specific instances some of the boards, after taking up the selling of electrical appliances and fittings,, have specialised • in certain lines to the utter exclusion of competing linos, enforcing compliance with their policy by refusing to finance and service any but the lines approved and sold by themselves, and that they sell such appliances at ridiculously low price, losses being recouped by increasing both the price of current to consumers and the rates imposed on consumers and non-consumers alike. In this policy the board are greatly assisted by the total absence of competition in regard to sources of electric power, and thus are enabled to raise prices almost with impunity. The result lias

been that even hoards which have carried out only their legitimate function of supplying power have built up great reserve funds, a practice which should be carefully whtched ill the public interests. Monopoly Scourge. Again, it must be borne in mind that the private businesses which were already well established before the constitution of the boards, and which are being more or less quickly forced out of business by the unfair methods of some of these bodies, have no form of redress for the very large loss of capital they will ultimately have to face. It would seem only fair and reasonable that some method of compulsory purchase of private works by the boards should be made available to private traders, It also should he remembered that at the inception of the board system; there were in existence large private concerns fully capable of setting up branches in scattered areas for the supply of apparatus, had they been given the opportunity, to do so. Exclusive! Prviileges. Other unfair advantages enjoyed by the trading boards are that they can compel payment of accounts Riy threat ening to cut off the supply of current and that they are fully secured for apparatus sold on the time payment system. Further, if their own creditors are kept waiting the boards are apparently under no liability to pay interest on overdue accounts. It is stated that in some instances this exemption has had the effect of compelling private traders to pay interest on hank overdrafts while waiting long periods to receive payments from the boards. Even admitting, then, that in the past there lias been a tendency on the part of some few traders to exploit the public and also that in the event of reversion to private trading certain advances in the direct cost to the consumer might be necessary owing to the present unsound policy of the boards, it is quite plain tliai the private traders have a good case calling for full and, early invesigation.