POWER BOARD FINANCE.

Wairarapa Age, 20 April 1933, Page 4

POWER BOARD FINANCE.

BALANCE SHEET FOB YEAR. SATISFACTORY POSITION. The balance sheet for the year ended March 31, of the Wairarapa Electric Power Board discloses a very satisfactory position. After making provision for the usual amounts for depreciation and sinking funds, and providing £6OO for the transformer and switchgear at the Freezing Works, £5OO for meters and service connections, and £450 for the bad debt reserve, the profit for the year amounts to £2782 7s 7d. The gross profit on trading was £325 16s less than the estimate, and wages were £521 10s 5d in excess of the estimate. These two items have already been dealt with by the board and corrected in the reorganisation decided upon in February. The estimates for the current year have not yet been prepared, but the secretary-manager (Mr. Geo. Brown) considers that the board will be able to make reductions in charges amounting to £5478 per annum, made up as under: Profits from- the year ending March 31, 1'933, £2782 7s 7d; reduction in interest £2196; saving as the result of reorganisation decided upon in February, less extra cost due to exchange and sales tax £5OO, total £5478 7s 7d. The board will be able to make reductions in charges in all classes of load, and to favourably consider making a substantial concession to those consumers who during the past year became liable for deficiencies on their guarantee accounts. The amount outstanding on consumers accounts at the end of March was £2344 15s 3d, as compared with £2150 19s at the same period last year. The increase is accounted for by the amount owing for deficiencies on guarantee accounts.

The operation of the Local Authorities Interest Reduction and Loans Conversion Act will result in a reduction of interest payable by the board of £2'196 per annum, and if the board’s existing loans are converted to the minimum rate of 4| per cent, (providing the sinking fund payments are not increased) a further saving in interest and sinking fund payments amounting to £1365 per annum will result.