Thames Star THURSDAY, JUNE 17, 1937. AN OVERSEAS LESSON.

Thames Star, Volume LXVI, Issue 20036, 17 June 1937, Page 2

Thames Star

THURSDAY, JUNE 17, 1937. AN OVERSEAS LESSON.

"With mance towards none; with charity for all; with firmnen in the right, as God give* ut to see the right."—Lincoln.

JRe-organisation of the whole system of electrical supply, which the Minister for Public Works has stated is the next big - job he will undertake, raises some points of considerable public interest (says a statement by the Associated Chambers of Commerce of New Zealand). The desire of the Minister to put the system on a better footing is to be applauded, and he should be supported in any reforms he may sponsor which are on sound lines, and which will have the effect of improving the service, reducing overhead charges, bringing down the cost to the consumer, and increasing consumption. With 40 independent power authorities in existence, most of them highly efficient but others probably not quite so efficient, and carrying between them heavy overhead costs, there is a prima facie case for cost production, hut it would he a matter of public interest to hear the enso for the power boards. The Minister has stated, among other thinsrs. that the svstem inisrhfc be taken rvvpv by the State: that the sales department is one that will have to be iuvpsHcrnted: and that he intends to visit Victoria to investigate the electricity commission system in that State.

It is to be hoped that the Minister will make a thorough investigation of all departments, past and present, of the commission's activities, particularly if he possiblv lias in mind not only the nationalisation of the retailing of electricity, but also the nationalisation of the retailing of electrical appliances and apparatus. When the Minister goes to Victoria he will find that the State Electricity Commission does not trade in appliances, hut confines itself to the generation, distribution and supply of electricity. However, it was not always so; in 1925 the commission decided on a policy of trading in appliances, it purchased large stocks, built new premises and opened trading depots. By the end of 1925 a great retail oi-ganisation had been built up, and, by means of its financial resources and legislative powers, it made very serious inroads into private trade. The commission claimed that "without leadership on the part of the commission the trade would not be brought to provide sales facilities of a quality and extent which the consumers of ■electricity were entitled to have at their command," but the only effect which the trading activities of the commission had in this respect was to force private traders out of business, to prevent others from obtaining a footing, and to create a state of uncertainty in the industry which prevented natural development. The first five years of the merchandising operations of the commission Avere apparently so unsatisfactory that even questions in Parliament failed to secure figures indicating the results of its merchandising activities. The commission subsequently admitted that, notwithstanding its exemption from rates, taxes and other similar charges with which private enterprise was saddled, it had suffered trading losses. The fact began to emerge that the commission had failed to prove in any way that private enterprise had shown itself incapable of successfully handling the distribution of electrical appliances and apparatus. Whereas during the year prior to the commencement of direct sales by the commission, sales by private traders of electrical appliances had increased considerably, the commission, despite the introduction by it of-a tariff with exceedingly favourable energy rates, eould, on its own statement, effect little improvement. It was obvious that it was the success of private enterprise in marketing electric, appliances that had inspired the commission with tho desire to enter that field of activity. In 1933 an Act was passed forbidding the commission's carrying on or engaging in the business of trading in any electrical apparatus, or undertaking electrical Aviring installation in any premises other than its own, and the extraneous actiAnties of the commission A\-ere consequently ended. With this example before them, Noav Zealand people should bo Avell content to see the retailing of electrical appliances and apparatus left in the hands of those most competent to handle it, namely, private traders.