BULK SUPPLY CHARGES

Waipa Post, Volume 48, Issue 3482, 21 June 1934, Page 5

BULK SUPPLY CHARGES

POWER BOARDS WANT ALTERATIONS.

TAKEN UP BY MR BROADFOOT

"I realise that the foundation is wrong," said Mr W. J. Broadfoot, M.P., when he attended the meeting of the Waitomo Power Board on Monday, alter they had laid before him a protest against the present system of charging adopted by the Public Works Department for bulk electricity, and especially the differentiation between town and country beards. M;v Cato had pointed out that in such a scattered district as this the cost of reticulation was heavy. In Wiaitomo here were 1199 ccmumeis, and loan moneys amounted to £IOO,210, an amount of £93 per installation. On the same basis the cost per installation in Hamilton Borough was £lB, of Christchuich £29, and Waitemata £44. Mr Lee stated that ever since the commencement of the Board's operations it was felt that the objects were to supply electvicity on as cheap a bards as possible. Unfortunately, in the first stages of the Board's operations the administration was not of the best, but of late years considerable progress had been made by the Board. There had been considerable surpluses of revenue over expenditure, and these surpluses had been dealt with in the right way—by reducing the charge to the consumers. The present and previous Ministers had indicated that they were favourably disposed towards a reduction in the supply charges—but unfortunately as soon as they got back to the Electrical Department, the Board would receive a letter stat, ng that the time war, not opportune fcr the Public Wo,rks DepaiiUment to reduce the charges. At the same time the Board found that the Chief Electrical Engineer was making new and lowpriced contracts with the larger Boards. The electrical undeitakings were part of a national scheme, for the people of New Zealand were all equally responsible for the indebtedness ncurred. The Board therefore felt that the same charge for bulk supply should be made from the North cape to the Bluff. The heads perhaps held that it was more expensive to supply some areas than others, but he did not believe this should be taken into consideration, for the intention of the Government was to reticulate the whole of the Islands. He could not see why the cities should have a cheap rate just because they were thickly populated —it was far more log cal that a heavier charge should be paid for bulk supply owing to lesser reticulation costs.

One feature of the position was that scdue of the city authorities, had been enabled to divert large sums from electrical profits to other direction::. The relief of ratepayers was very desirable, but it was altogether wrong when the relief came at the expense cf other power authorities. There we.e the alternatives of br.piging the price down in the out-dis-tncts, which the Government maintained it was not in a position to do —anu of evening up the charges so that ciiy and countiy would be on the uame basis. 'the contracts made by the c ty boards were falling due liom time to rime, and the Government was renewing these. Only by continuous pressure would the Board hope to get Jesuits. Mr Simms pointed out that the new dairy factory being built at Otorohanga was designeu to use than electrical power. The Board had obtained about £6OO a year revenue hxmi it in the past—now they were gong to Ice that. This trend was net only found in the Waitotmo Boards area, but in Te Awamutu and many othev districts, and it was a fact which should be brought home to the Chief Electrical Engineer, for he was the man who was running viie Department. There were not more than three Boards in the Auckland Province, he stressed, that were on the same bulk supply price level—even the price to adjacent Boards varied.

Refeuing to the power to be used by the new Otorohanga factory, Mr Bi'oadfoot said that ether people were thinking on similar lines. He had just been in conversation with a lime company manager, and it was in his herd to change to Diesel. He held that .here should be one charge all ever New Zealand, with an arrangement incorporated in regard to the standby plants. Some bodies were diverting their electrical profits tluvt was the result of a monopoly, which was just as dangerous sometimes with a lecal body as with the private individual. One local body not fai from here had put £2OOO from electr'city profits in the general account. It would be better to take the Electrical Department out of political hands altogether, following Britain's lead. It was nothing move or less than a gigantic business undertaking. The request;- of the Board were perfectly logical. There \vac» a ve:y live danger from Diesel, and possibly from steam. The great object've of the "electrical game" was to offer supply at a price where people could not but afford to use it. The differences between the 8 guineas and the 5 guineas for the same supply, he stated, looking at a schedule submitted to him, were altogether disproportionate.

Mr Boddie: You have hea'"d no question in Wellington of faking electr'city out of political control?

M-," Brcadfoot: I have never heard it discussed from that standpoint. Mr Simons. I suppose you know that resolutions have been passed at every Power Board's Conference asking it to be freed from political control. They do not get past the Minister, then? Mr Broadfoot: I have never heard it discussed from the floor of the House.

He premised to take up the matter in Wellington.—Chron'cle.