PUBLIC OPINION

Wanganui Chronicle, 26 May 1948, Page 4

PUBLIC OPINION

RETICULATION OF ELECTRIC POWER

Sir, —Your reporting of the annual report of the Wanganui-Rangitikei Electric Power Board makes interesting reading, but I feel is worthy of comment irom an area as yet unreticulated and only five miles from Wanganui.

Speaking of cost to the consumer, Mr. Purnell states that electricity is one of the few essentials that has not risen in price. I appreciate the word essential, but beg to point out the rest of the statement is a half truth. While appreciating the low cost per unit, Mr. Purnell appears to forget that his board has continually pointed out to settlers in this area that the cost of reticulation has increased beyond reason. Does he not recognise this guarantee' charge as the cost of an essential to the country consumer.

Again Mr. Purnell speaks of the board’s very generous reduction of the guarantee of 74 per cent. As I understand the situation, this reduction was brought about by power boards throughout the country falling in line to subscribe to a fund that can be drawn on to assist country reticulation. That the finances of the board are of such a high level as to exclude them from drawing on this fund would hardly have justified them in standing out from this policy. Hence, I cannot see where Mr. Purneli can feel so proud. Apparently, the high cost of work is causing the board some concern. When building up funds in reserve and investing them, as I believe they are, in such gilt-edged (?) securities as racing clubs where they have over the past few inflationary years depreciated in value, the board has never understood that if a policy of reticulation had at the time been carried out a valuable asset would have been built up showing if anything, an appreciation in value. The balance in the capital account of 154,983 is, I agree, impressive, but what would impress anyone unable to secure power under the present board’s policy, and in fact, any rightthinking person, is half this sum spent in reticulation instead of depreciating in loans to clubs.—l am, etc., G. A. VAVASOUR.

The chairman of the Power Board reported as follows: — The scheme to subsidise certain rural reticulation, conceded by the Power Boards’ Association, still anticipates a guarantee much in excess of what is now asked here; in some circumstances part of this may be provided by subsidy, but the amount of the subsidy varies, up to a maximum of 71 per cent.; the guarantee which the consumer may be required to find then may be anywhere from 74 to 15 per cent, on the capital cost. The Wanganui Board has quite voluntaily agreed that it will itself subsidise all its guarantors from the beginning of this year to the maximum amount of 74 per cent., so that no one of them will have to pay more than this minimum to obtain a service. Surely, even Mr. Vavasour will be generous enough to acknowledge that the board is due for some credit for this. While Mr. Vavasour continues to indulge his fancy by writing to the “Chronicle” to complain of the board's policy, others seemingly a little more practical, are endorsing it by definite applications—and guarantees —to obtain a service at the earliest opportunity.