THE WAIKATO TIMES THURSDAY, JUNE 13, 1935. ELECTRICITY CHARGES.

Waikato Times, Volume 117, Issue 19601, 13 June 1935, Page 6

THE WAIKATO TIMES THURSDAY, JUNE 13, 1935. ELECTRICITY CHARGES.

The Hamilton Borough Council at its meeting last evening reviewed the electrical charges, and decided to reduce them to e extent of £3OOO, which is equivalent to a 10 per cent, concession to consumers. It was elicited during the discussion that the charges m Hamilton ate on a much higher rate than other centres, being per unit as against lid in Te Awamutu, and |d in Auckland. v\i the reduction now made Hamilton will still retain its reputation or high charge, and consumers have a‘right to expect that as t e rc suit of the committee’s investigation further redress vill e ma e to bring the borough more in line with other places.

Municipal enterprise should not be conducted with an eye o financing permanent works. To do so is a wrong princip e. e purpose of a community trading activity is to supply the commo i y concerned to consumers at the minimum figure after allowing for overhead expenses and reasonable contingencies.. To charge t& es resulting in inordinate profits on the outlay entailed, and to iver those profits to other channels, even if those channels are municipal, is to penalise .one seotion of the community for the bene o another.

The principle of financing permanent and maintenance work from the profits of a trading enterprise is not equitable. The cost ot such works should bo met either by rates or loan, as thereby those who benefit pay in a just ratio.

A point was made last evening that the borough had received good value for the funds which have been diverted. That may e so, but value does not enter into the controversy. The same good value would probably have been obtained, no matter whence the source ot the money expended. The point is that electricity consumers ave been called upon to pay more than their fair proportion o e cost of the borough’s permanent works, which should be a charge upon the whole body of ratepayers and not upon a section.

The object of tho State in providing electrical power throughout the Dominion was to assist and foster industries. That o jec wi be largely defeated if the boards entrusted with the duty of distribution fix their charges so high as to make the general use o power too expensive. It would be a reflection upon the business aptitude of such bodies if their action resulted in Government intervention, but it is stated on reliable authority that such intervention in some instances is more than a possibility.