The Waipukurau Press. Published: MONDAY, WEDNESDAY, FRIDAY WEDNESDAY, AUGUST 27, 1930. PRICE OF ELECTRICITY.

Waipukurau Press, Volume XXIV, Issue 100, 27 August 1930, Page 4

The Waipukurau Press. Published: MONDAY, WEDNESDAY, FRIDAY WEDNESDAY, AUGUST 27, 1930. PRICE OF ELECTRICITY.

On several occasions of late there has been mentioned the matter of an increase in the rates charged to consumers and some of the members have evinced a tendency of flirt with this question, though others have discountenanced it, states the Eketahuna .‘Express.” The question has not yet reached the length of being discussed under a resolution, but the possibilities of the indications cannot be altogether ignored. A statement is on record from the Chairman that he does not believe any increase will be necessary and it is also on record by the secre-tary-manager that he does not believe such a course would be conducive to business At the last meeting, however, there was a clause in the secretary-manager’s report, which ivill tend to give a handle to the Argument of increased rates, and the fact that the report was adopted, probably without the board, in its present state of mind, noticing the matter, does not improve the position or make it any safer. The clause in question reads: “I want to remind you of concessions and limitations, which have affected our revenue since the fixing of our present Schedule of charges in 1926: (1) Daylight saving; (2) Removal of fixed charge on dairy motors; (3) Change over from k.v.a. method of charging current to dairy companies; (4) Increase of bank rate of interest on overdraft to 7 per cent for two lengthy periods; (5) Petrol tax; (6) Tyre tax; (7) 1 per cent primage on imported goods‘'for maintenance work; (8) Increase in wages to: Linesmen (1) 3d per hour, as-

■ sistant linesmen (2) 2d per hour. In the aggregate these matters involve a considerable sum and have no relative compensations. These facts should not be overlooked.” Taken by itself the above'might be regarded inerely as an item of information. Taken in conjunction with remarks previously passed by some of the members there is a distinct suspicion engendered that some propaganda work is afoot in getting consumers used to the idea of a possible increase- in rates. It is said that ithere are no compensations for these increased. expenses. But is that correct? As we see the matter it is not. "Every monthly report, without exception has contained a list of new connected loads, and all these connections must mean increased revenue, out of proportion to the cost entailed in making them. Surely then they can be fairly regarded as compensations, for the revenue is increased comparatively. Some time ago an Eketahuna member raised the question of costs; the board even appointed a committee to go into the matter, and that committee had no recommendation to make; al-

i though at the following meeting, or i just about then the secretary-man-I ager’s report contained recommenda- ' tions in certain directions which it J was claimed would increase efficiency i and reduce costs. There appear to be ■ very good grounds for believing that finality has not been reached in this matter of costs, and that there is a good deal in the Eketahuna member’s contention. For instance this year the estimates show that the purchase of current from the Government is expected to be £5,800, and the estimated sales of that current, with a few small extras is expected to reach £22,490, leaving a gross return of £16,690. This is a margin that might be expected to produce comfortable working, and where, surely, all possibilities of economy have not been canvassed and ex-;,, hausted, particularly as all the board’s reticulation has been carried out on the basis of 18 per cent return. This disposes, by the way of one argument advanced that the reticulation was to a degree responsible for the financial position. It cannot have been on the percentage it is paying as a minimum, and undoubtedly in districts the maximum would show a considerable appreciation on this percentage. There is no desire to accuse members of being apathetic in their business, but in a concern such as this it often appears that collective administration falls a good deal short of what would be achieved by individual management. If the impression exists that it is quite the> right thing to increase the price of “juice” to meet the situation then that collective management will not be improved.