POWER BOARD

Waipa Post, Volume 31, Issue 1764, 29 May 1926, Page 5

POWER BOARD

ADJOURNED MONTHLY MEETING. SANCTION FOR £25,000 LOAN DESIRED. The adjourned, ordinary meeting of the Te Awamutu Mectric Power Board was held yesterday, when there were present: Messrs J. T. Johnson (chairman), G. 'Spinley, J. B. Teasdale, C. iG. Downes, A. L. 'Storey, J. <J. Sutherland, N. M. Lethbridge, F. S. Parlane and S. C. IMacky. Before the ordinary business Avas dealt with, the chairman reported that the executive had met the lowest tenderers for building the Board's new offices. Messrs Mclnnes and, Ross had, in view of certain alterations in the specifications, agreed to amend their tender by £2lO ss, making their figure £2914 15s. The Board went into committee to discuss the whole /financial position, and on resuming Mr Sutherland moved that the building scheme be proceeded with. The position warranted going ahead. Mr Downes seconded. To Mr Parlane, the chairman said 'it was proposed to deal in electrical appliances, including stoves, bulbs, etc.

To Mr Macky. the manager (Mr D. McArthur) said he had gone very fully into the financial position at the present time. What the year would bring forth was, of course, problematical. Last year the revenue had exceeded the estimates by £36, tut the expenditure was appreciably higher than anticipated. He was convinced the building scheme could be gone on with, without jeopardising the financial position. The consumers' finance loan could 'he, and had been, utilised for further stock extensions to connect new consumers, but not for high tension lines. To Mr Lethbridge, the chairman said there is no limit to which the Board could rate to. If the proposed loan is rejected hy the ratepayers the .Board could obtain sufficient money for requirements hy way of rate. The chairman said the executive recommended that the ratepayers be asked, to sanction a loan of £25.000 for the provision of safety devices,

and static condensers, and for future reticulation. Mr Johnson said that in the interests of humanity safety devices must be provided. They could not be purchased out of general loan. Re static condensers, these would give an increased power factor, and thus effect a saving of £BOO per annum. The condensers would, cost about £ISOO to £2OOO, thus the outlay would be recouped in little more than two years. Regarding extensions, the cost each year had been about £4OOO, and estimates for the future were upwards of that amount, in view of the continued development and increasing use _of electric power. Stores required Avithin tha, next few years would cost about £4OOO. The sum of £25,000 would provide for all these. He moved the poll be taken.

Mr Sutherland, «aid it would probably not be necessary to raise the whole sum at once. But authority to raise the loan was necessary. (He heartily seconded the proposal to take a poll, and was confident the ratepayers would realise it was a wise and economical move.

The manager, supplementing the foregoing remarks, said the condensers would prevent, or, rather, greatly reduce the wastage of power purchased from the Government. A lot of power now purchased by the Board was not sold to consumers, because of the leakage. The cdndensers would, greatly reduce the wastage. The chairman added that of the £25,000 loan for consumers' finance £15.000 had been used in the past five years. Of course a proportion of the advances to consumers had been repaid. The loan was being repaid to the lenders by way of sinking fund. 'He hart, a week asro. thought that an over-all loan of £15,000 would be sufficient, but that was because he thought the £IO,OOO yet in the consumers' finance loan would, be utilised for smaller extensions. He had ■since come to the conclusion that it would be preferable to ask for permission to raise £25.000 and leave the consumers' finance loan for its original

purpose. Mr Sutherland said the Board had reached the position where it could stand atone. Though ratepayers would have to guarantee the loan by pledging themselves to pay a rate if called upon, it was' extremely improbable that such a rate would have to be collected,.

■Mr Johnson said if a loan of £15,000 were decided upon, it would almost certainly be necessarv in four, five or six years' time to ask the ratepayers for another loan.

The manager said though the Board bad struck rates for loan repayment it had never collected the security rate. Had the full amount been collected, the Board's finances would now be in a better position than they are. The ratepavers had had. the advantage. The resolution in favour of a loan was carried unanimously. It was decided to circularise the ratepayers explaining the reasons for the loan proposal. The necessary formalities were left in the hands of the executive.