POWER BOARD YEAR.

Wairarapa Age, 29 May 1936, Page 4

POWER BOARD YEAR.

“We were in the happy position of being able to provide from revenue the funds required during the year for capital expenditure, and at the same time make reductions in charges which resulted in a further saving to the of £2870 per annum,” Mr. Pearce continued, “The total revenue was £55172 6s 6d and the total expenditure £48259 16s Id; leaving a balance of £6912 10s sd. The sum appropriated for capital expenditure was £3496 3s 3d and the rebate on guarantees £515 10s 2d, leaving a net surplus of £2900 17s. The progress has been such that we could make a further reduction in charges except that in order to carry out the functions for which we were constituted and provide a supply of power to districts and localities which are not at present served and in order to connect up new consumers on lines already erected, it will be necessary to make a substantial appropriation from revenue to provide the required funds. Under the circumstances, it does appear advisable to delay for one year anyhow, making any further reduction in charges, except in the case of water heating. No reduction has yet been made in the charge for this service, and a reduction will do much to further popularise a service which is already very much sought after.

A POLICY POINT. “The position as it exists to-day raises the question as to whether from a policy point of view it is advisable to provide for all capital expenditure from the profits in revenue account instead of passing this surplus back to the consumers in the way of reduced charges. Taking into consideration the low rate of interest at which money can be borrowed to-day, the question of providing additional capital to meet the cost of a proportion of the new work warrants serious consideration. In my report of last year I made particular reference to the position in connection with the depreciation and general reserve. At that time the two combined amounted to £35,137 18s 7d. The total to-day is £42,265 IBs 7d The increase is satisfactory but as our depreciable assets amount to £317,772 2s lid, a considerable amount has still to be added to the reserves before we can state that depreciation and other contingencies are safely covered. Under the new conditions existing as a result of the loan conversion, our loan liability was reduced last year by £l9OO. During the current year debentures to the value of £8250 will be paid off, and provision has been made, of course, in the estimates, for this payment. It is suggested that the reduced charge for dairy motors be continued for another year. The present charge is one of the lowest in New Zealand and the board’s action in meeting the dairy farmers during the difficult period through which they have been passing, has been very much appreciated.

DANGER OF TREBS. ‘* The danger which exists from trees growing adjacent to power lines has been brought into prominence during the past year by exceptional storms which have been experienced in different localities. We, of course, know from actual experience just how great the danger is, how costly it can be and the great inconvenience caused to consumers by the damage done to the lines. It would be to the advantage of all concerned if the menace could be completely rembved and warrants action on the part of the Government to make it possible for the supply authorities to find the finance to carry out the work. It is satisfactory to note that the Public Works Department has very nearly completed the survey of the route of the new line from Waingawa to Wellington. The completion

of this line will make our position from a supply point of view, very much more secure and will also make it easier for the Department to maintain the present line over Mt. Bruce. It will also make possible the second point of supply which will be necessary at a later date to deal with the increasing load in the Southern Area. I should again like to place on record the board's appreciation of the manner in which the Department met the board regarding this second point of 1 supply. During the current year, many ! new problems will have to be faced and dealt with, but there is every reason to anticipate that the increased' activity which was noticeable last year, will be continued, and that as a result, our revenue is likely to show a substantial increase. I wish to assure the staff that their loyal service and co-operation is very much appreciated by the board and to congratulate Mr. Brown on the excellent result of the year’s work and the smooth running of the whole organisation. A large measure of our success is due to his ability.” Mr. Pearce expressed thanks to the board members for their I willing co-operation. Their good team work had helped the board in no small I measure. Mr. Pearce also expressed I thanks to the Press.

SATISFACTORY SURPLUS SHOWN. SAVINGS TO CONSUMERS OVER PERIOD. REVIEW BY MR. A. C. PEARCE. “The year which closed on March 31 last was, compared with the three previous years, one of increased activity in all departments and the year's working as disclosed by the balance sheet and the manager’s report, shows a satisfactory surplus after providing for all contingencies," stated the chairman, Mr. A. Campbell Pearce at the annual meeting of the Wairarapa Power Board yesterday. (Continued on page 3.)