The Waipukurau Press. PUBLISHED EVERY EVENING. SATURDAY, MAY 28, 1932. POWER BOARD FINANCE

Waipukurau Press, Volume XXVIII, Issue 131, 28 May 1932, Page 4

The Waipukurau Press. PUBLISHED EVERY EVENING. SATURDAY, MAY 28, 1932. POWER BOARD FINANCE

As was remarked by the chairman (Air. A. C. Russell) and several members of the Central Hawke’s Bay Power Board at the annual meeting held yesterday, the position of this seven-year-old body is one that can be regarded as highly satisfactory. It is by comparing figures dealing with revenue and expenditure with those of other boards similarly situated in regard to the population and area served that the honest critic is able to make a proper estimate of the work of any public trading body. On this score there is every reason to believe that the Central Hawke’s Bay Board ranks as a successful institution, conservatively yet not unprogressivly controlled, although there is a feeling in some quarters that the policy of lighting charges reduction could safely be widened as well as liberalised on the strength of recent staff and maintenance economies offsetting the fact that the easing off of loan expenditure has relatively increased the burden on the General Fund. Having established the principle that there should be differentiation to the extent of Id. as in the Dannevirke District between the domestic rate (which for the most part of its application is subject to a reduction to 3d per unit after' a consumption of approximately 30 to 40 units per quarter has been involved) and business lighting which is on a flat-rate basis (not subject to any reduction because of quantity consumption) it is to be regretted that this equalising scale is to be impaired somewhat. As against a penny difference (9d. domestic and Bd. business) there will only be a preferential benefit of a half-penny as the former is to be reduced to Bid., while the latter remains stationary. As compared with the Dannevirke basis of Bd. and 7d. respectively the Central Hawke’s Bay rates will be Bid and Bd. As far as the general body of other scales are concerned the local board can claim very favourable comparison with many kindred bodies —in some instances offering better terms. It is in the letter connection that the Board will need to be wary of granting concessions inasmuch as the maximum demand factor in the Government charges can enter into the matter and the development of lower priced service units tend to reduce the profits in a direction that ultimately means selling much of the current below cost. With substantial reserves such as the Depreciation Account of £11,628, including £lBl2 4s Id provided during the past year which by suspending payments within the limits allowed could be drawn against for special requirements, £1,105 Is 7d Reserve Fund, £6OO goodwill on the former Borough plant, and £1621 os. 7d credit balance as at March 31, it would appear that apart from only having in view a credit of £638 7s lOd (now reduced by way of |d. reduction to £277 2s sd) at the end of the year 1932-33, the Board would not have been overoptimistic or risked an injustice to ratepayers had a reduction of Id. per unit been made in domestic lighting, costing £512 0s lOd (estimated) for the Cou.ntry-Waipawa area and £2lO 12s for the Waipukurau Borough, a total of £722 12s lOd as against the. |d. agreed upon. To have included business lighting on a' Id.

basis would have cost £lO7 10s 2d for the Country-Waipawa Area and £lOl 12s lOd Waipukurau Borough, or had even a id. been granted £lO4 Ils 5d extra to the £361 6s 5d involved in the reduction decided upon over the whole area for domestic lighting. It is recognised by several members of the Board that range users, with two metres, should, when good times permit, be accorded similar rate reductions to those with single domestic metres, instead of a continuous flat lighting rate, at the higher mark. This would involve on present figures £456 and would be of special and equitable benefit to country dwellers, viz., £405 being the estimated country quota and £5l Waipukurau Borough. As mentioned in the debate yesterday the reductions granted last year represented a square deal .between town and country for domestic and business lighting, country minimum, and range rates, viz., £414 15s 9d Country; and Waipawa Borough, and £142 3s 5d Waipukurau Borough. Criticism apart, the chairman, deputy chairman (Mr. W. H. Rathbone), 1 finance committee, and members, secretarymanger (Mr. G. E. Fowler), and the engineer (Air. J. K. Lee), as well as the. loyal staff can be congratulated on the administrative phase of the Board’s activities, a profitable feature of which is the watchfulness displayed in the matter of the temporary investment of surplus monies. For the rest, the consumers are the backbone of the Boards’ stability and the times through which we are passing the aribter as to a return to prosperity. That the revenue decline (£4OO 19s 6d) was less than expected last year, is a hopeful omen. Against an anticipated loss of £434 5s 8d on , last year’s actual workings, on a revenue of £22,904 12s 6d, the board emerged with an adverse balance of only £153 JOs .3d, which favourably with our neighbouring board’s loss of £372.