DESPITE DIFFICULTIES, POWER BOARD HAS HAD SATISFACTORY YEAR

Wanganui Chronicle, 16 May 1950, Page 2

DESPITE DIFFICULTIES, POWER BOARD HAS HAD SATISFACTORY YEAR

"I feel sure that members will agree that despite the sense of frustration that we have had at times, there is still some reason for satisfaction at what has been achieved during the period,’’ stated the chairman (Mr. F. Purnell) in his annual report presented to the monthly meeting of the Wanganui - Rangitikei Electric - Power Board yesterday. Mr. Purnell said the year, which ended on March 31, 1950, marked another successful term in the board's service in the community. "The measure of this success," he said, "has been affected by the difficulties of the times, which are the shortage o£ material and its high costs, lack of adequate labour, and most serious of all, the insufficiency of electricity available for the ever-increasing demands of the people. Reporting on the revenue account Mr Purnell said when reviewing the accounts last year he commented that there was no reason to expect that the income of that year would be eclipsed while the power shortage remained. "The increase then this year of just about 8 per cent, over last year’s total is most gratifying and as welcome as it was unexpected because although there was an increase of £15,522 in income, expenses have been so much higher this year that the end of the year surplus is less than what it was a year ago.” Particulars of the 1949-50 income with the corresponding figures for 1948-49 in parentheses are as follow’— Revenue from consumers, £189,319 (£175,195); from bulk supply, £7703 (£6558); street lighting, £4029 (£3849); trams. £2870 (2801); other sources (trading profits, rents etc.), £6527 (£6478)); total, £210,448 (£194,926). Comparative figures for expenditure were (with 1948-49 figures in parentheses):—Bulk power, £91,450 (£84,986); expenses at power house, £1289 (£1279); distribution and maintenance, £27,424 (£25,397); capital charges, £34,298 (£34,216); depreciation and renewals, £16,517 (£7771); overhead and general, £18,895 (£16,796); surplus, £20,575 (£24,481). "The increase in tlie cost of bulk power,” said Mr. Purnell, “includes £3OOO arising out of the revised departmental tariff. Last year this affected the accounts for only six months, but the full increase of £6OOO has come into accounts for the year now under review. The increase in the amount paid for bulk power has taken 9s 2d of each extra £1 of electricity revenue. The greatest increase in expenditure is that under depreciation and renewals, which is more than double the amount in last year’s accounts. "The total expenditure on capital account was £25,572, compared with £31,337 spent the previous year. An increase in maintenance work must mean less time and therefore less expenditure on new work. The year’s expenditure has been met. by transfer of the whole of the revenue surplus and a further £7OOO out of reserves." “The cost of new work is very high. Hardwood poles have further increased in cost during the year and by way of illustration the cost of an ordinary service pole delivered into the board's store now is just three times what it was 10 years ago. Copper prices showed some tendency to ease early in the year, but devaluation of sterling resulted in a hardening of prices. Unfortunately there are not yet any signs of a lowering of the existing high costs, but one cannot accept them as the standard on which all future development is to proceed, and caution in capital expenditure is more than ever necessary.”