POLL PROCEEDS ON £9000 LOAN FOR ELECTRIC POWER.

Star (Christchurch), Issue 18787, 17 June 1929, Page 16

POLL PROCEEDS ON £9OOO LOAN FOR ELECTRIC POWER.

RICCARTON RESIDENTS ARE VOTING TO-DAY.

To-day, a poll is being taken in the Borough of Riccarton on the question of raising a loan of £9OOO in order to extend the borough’s electrical undertaking. The success of this department of the borough’s activities has been marked in the past, there never having been a year in which a sub stantial profit was not made. Last year, the net profit from the undertaking was £I7OO. To outline to the ratepayers the necessity for the loan, a public meeting was held on Saturday night, when the Mayor (Mr H. S. S. Kyle, M.P.) and the chairman of the Finance Committee, Mr W. Machin, gave addresses. The Mayor said that the meeting was called for the purpose of putting before the ratepayers the question of raising a loan of £9OOO for the further electrical reticulation of the streets of Riccarton. They knew the advances that had been made in the supply of electricity. In 1917, when Riccarton first had an electrical supply of its own, the revenue was £210; las* year the total was £8264. In the Riccarton Borough, they had two of the largest flour mills in New Zealand and three timber mills, using electric power. The Government had handed over the control of reticulation to power boards and the responsibility of guaranteeing a sufficient supply of electricity had devolved on the Borough. To carry out this responsibility, it was necessary to raise a loan of £9OOO. It was necessary to erect a substation at a cost of £I2OO. The south-west area had to be reticulated and the only way to do this was to raise a loan. The spending of the money would be spread over a number of years. The money would not be raised until it was required. The electrical* department was the only Borough trading department and it was the only department which had a chance of showing a decent profit In 1920, the council made a profit of £371, in 1925 the profit was £2935 and in 1928-29 the profit Was £I7OO. The council did not think that it would be necessary to strike a r&te. He urged the ratepayers to cast their votes in a favourable way to-day. The poll would be carried by a bare majority Not only would the carrying of the loan increase street lighting, but it would keep the equipment up to full efficiency. Mr W. Machin said that the proposal had the approval of the Finance Committee of the new Council. The last balance-sheet showed that the department had; assets totalling £22,000. Electricity wsts adequately supplied by the Borough of Riccarton. The reticula tion and equipment were efficient, sound and well maintained. The system was operated in such a way that instead of depreciating, it had appreciated. The concern was half paid foi. The conduct of this department had been sound. Profits had been put back into the concern, which was good trading. The borough was extending, and the whole object of borrowing £9OOO was to enable the council to extend the undertaking so that it could meet the legitimate needs of the citizens* of Riccarton. It was a necessity that a security in the way of a rate should be given. When all the loan was raised, the interest and sinking fund would be about £7OO to £BOO a year. However the returns from the outlay of the loan would be adequate to pay the interest and sinking fund, and provide a nice amount to go to the reserve fund a«> well. The new council was not likely to go in for anything like a wild-cat scheme. It was necessary that the loar. should be carried if the council was to go on extending its business. It would be quite easy for the council to say that it would wipe off the deficit which the borougL had at present. That would mean a 2*d or a 3d rate. It would also be possible for the council to decide to pay off the deficit gradual ly by a id rate, but the council wav not going to do this. The finances o' the borough have been arranged econo mically, and, rightly or wrongly, it had been decided not to increase the rates, but to effect economies. They could take that as an earnest that the council was not advancing any scheme that was likely to cause an in crease in rates. The ratepayers could vote for the proposal with confidence “Don’t you think the Riccarton Bor ough has wasted enough money now? asked a ratepayer.

The Mayor said that in no year had the electricity scheme of Riccarton shown a loss. It had always shown a profit. If the council was to give the ad dltional electric supply that was ask ed for, it felt it had a right to ask for authority to raise this loan. “What will be the position of the electricity department if this proposal is turned down?” asked a questioner. The Mayor said that if it was not cai ried, the department would not be able to progress at the same rate as it had in the past. The Local Bodies’ Loans Board had approved of the pro posal.

Mr Machin said that it. as was anticipated, 300 houses were built in Riccarton soon, the council would not be able to extend its business to meet this demand unless this loan was carried.

Mr R. W. Brightling said that it was essential that the loan should be carried. It would be selfish if they did not give future residents the same facilities for getting electricity as they had themselves. The loan should be carried. 4