THE POWER BOARD LOAN.

Waipa Post, Volume XXI, Issue 1242, 13 May 1922, Page 5

THE POWER BOARD LOAN.

THE SCHEME OUTLINED. MEETING AT TE AWAMUTU. The Mayor (Mr L. G. Armstrong) presided, at a sparsely attended meeting of ratepayers held in the town hall, Te Awamutu, last night, when the Power Board loan proposals were fully explained by Mr Johnson (chairman of that body). Complimentary References. The Mayor, in introducing Mr Johnson, said it was the first occasion pn which the ratepayers of Te Awamutu had been called together to meet representatives of the Power Board. They were the first Board to operate under the Act, and he need hardly say what that meant to the town, which had, as a result, been brought into line with some of the most progressive .towns in New Zealand. What that did for the prestige of the town can be well imagined, as it became known from the North Cape to the Bluff that Te Awamutu and district had installed an efficient electric lighting and power plant. He briefly sketched the inauguration of the scheme and went on to refer in complimentary terms to the officers of the authority. In this connection he remarked that the Board was fortunate in having available as its chairman such a valuable man as Mr Johnson, who had made the necessary sacrifices in order to devote himself to the work ot the Board, which he did assiduously and creditably. (Hear, hear). The Board too, had been favoured in securing, from a large number of applicants, as manager, Mr McArthur, whose selection had been fully ustified, and who had devoted himself as manager-secretary with conspicuous ability. The same could be said of the engineers who had created such a favourable impression by their work here that their reputation had preceded them, and they had now been appointed to similar positions in Wanganui and Dannevirke. In Mr Bickerstaff, they had an able and capable engineer. As far the the borough representatives on the Board were concerned, he could say that they endeavoured to act in the interests of the community as a whole, and not merely as borough delegates. Necessity to Help Consumer. Mr Johnson, in his address, traversed most of the gVound previously reported. He detailed the difficult times through which the farmers were passing, the price of all their products having receded so much so that to-day these people did not feel they could afford the capital outlay necessary to put in electric installations, now that the power was available, or would be shortly, as the works were drawing to a conclusion. While the works were in course of construction, the Act allowed the Board to pay interest and sinking fund out of loan, but once the job was finished all these charges had to he borne by revenue. By one of two ways this revenue could be made of sufficient dimensions 1 to cover the charges, viz., by aiding farmers to install plants, and thus permitting the Board to earn legitimate revenue, or, alternatively, to collect the rates. The Board decided that the best plan was to make available to the farmer and any others desiring assistance, the capital necessary to put in the installations, and thus bring the Board that revenue which it urgently needed to obviate the necessity for calling up special rates. Besides which, the Board’s proposal would save the farmer buying benzine and sending the money out of the country. Instead, they would give him electricity, and keep the money in the district, by giving the Board the revenue which would obviate the necessity of collecting the special rates. Method of Assistance.

Mr Johnson then outlined the method by which the Board proposed/to afford financial assistance. It was suggested that Board would ask 20 per cent of the installation cost to he paid by the settlers as an evidence of good faith, the balance of 80 per cent beadvanced out of the loan. The advances would be repayable by 24 instalments over three years in eight payments per year, thus leaving the off season (May-August) without payments. As an example, if a service line cost £BO, the applicant would find £l6, and would have £64 loaned to him. Mr Johnson cited examples of installation and running costs of electricity on the farms, the examples going to prove the benefits, advantages, and economies of this form of power. The Board did not propose to raise the full £25,000 in one sum. It would raise only such amounts as were actually needed from time to time, and -arrangements would be made for reduction of the loan as circumstances permitted. This would avoid interest charges on money not actually in use. Answers to Questions. Mr Downes asked would the additional consumers mean much extra expense to the Board, or a great deal of revenue with very little expense. Mr Johnson said it was not thought that the public should pay for the benefit derived by the individual, who would be required to pay bis proportionate cost of administration, say about 1 per cent on their outlay. This would be charged up when the man went round to read the meter. The amount they paid the Government was based upon the peaks, i.e., when milking was taking place morning and evening, and the load was at its maximum, so that the consumption which went on in the “valleys” between wa9 profit to the Board. The higher the valley went up, the peak would not come down, but the charges would as the Board’s revenue would have been increased by filling up the valleys. Mr Philp asked, in supplying power to consumers, under the loan proposed, who would do the installations? Mr Johnson said the policy of the Board was to allow private concerns to undertake the individual installations. Owing to competition between the various firms operating in this district, the private firms could make the installations as cheap as the Board, which proposed to adhere to its policy of supplying the power line alone. The Board would see that a consumer was not victimised by any kind of material being put in, and it would see that they were safeguarded in all other respects. The Board did not propose to go in for making installations itself.

Mr Philp thought the installations should be monopolised, as spare parts would be required? and by standardising them they would get them cheaper. ' • '

Mr Bickerstaff (the engineer) replied that under their license the Government precluded them from creating anything like a monopoly such as would follow in the event of the adaption of Mr Philp’s idea, which the Board had already discussed, and could not agreed to- for that reason. Mr G Spinley (a member of the Board) said that the consumer was protected by the engineer having to installations put in. In reply to Mr Downes, Mr Johnson said that already quite a number had intimated their desire to obtain financial assistance. At Pukeatua alone some thirty settlers would require assistance. The first £SOOO of the loan would therefore be speedily used up. Thanks and Approval Mr Downes said that with a chairman, manager, and engineer like Messrs Johnson, McArthur, and Bickerstaffe, who were practical, capable and shrewd business men, and in whom they could trust their business with every confidence, they should have no hesitation in sanctioning the loan. He moved a hearty,vote of thanks be tendered Mr Johnson, and that the meeing heartily approves of the loan proposal, which it commends to the support of the ratepayers.

Mr P. W. Peate seconded the motion, which was supported, in a few appropriate remarks by Mr G. Spinley, and Mr' S. Clark, both of whom made complimentary reference to the manager and engineer, who were ever obliging and courteous to consumers. The motion was carried unanimously. Mr McArthur returned thanks for the complimentary reference to the engineer and himself. An yinformation or asistance he gave he regarded only as his duty. He was pleased to know that his efforts had been appreciated. Am Appeal for Support.

The Mayor, in concluding proceedings, said it was as> much in the ‘interests of those already linked up to vote for the loan as those who were not, as it would be an assurance against the collection of a rate. As chairman of the finance committee of the Power Board he could promise that none of the loan would be left unproductive. * It would be used so as to be interest earning of itself. The loan would be lifted as required, and paid back when not needed by giving six months’ notice. The money was primarily for connecting up milking plants, but it would be available for manufacturing concerns as well. This might mean a great thing for the town, as they could go to a prospective factory owner and say: “We can not only give you cheap power, but assist you in your initial capital expenditure as well.” That might mean getting industries started in Te Awamutu instead of their going to the South Is>land. The borough council at present paid £3OO to the Power Board for street lighting. That represented a capital outlay of about £7,000, and Te Awamutu could not get such a scheme for itself under £30,000. They had, therefore, a cheap service, which also helped to fill up the “valley,” and so help the consumer of electricity for milking purposes. .

A hearty vote of thanks to the Mayor, in whom Mr Johnson said the borough had a capable and far-seeing representative on the Power Board, was passed, and the meeting terminated. »