D—4

in revenue from the consumers would reduce the amount payable by subsidy and so release funds for other necessitous cases. Recently it has been submitted that some Power Boards cannot afford to operate rural line extensions on a return limited to 15 per cent., and that the Council should allow a higher subsidy wherever necessary. In order to be fair to all, the Council is confronted with the difficult task of determining which Power Boards require the extra assistance, and how much it should be in each case selected for preferential treatment. Discussions are now proceeding with the executive of the Supply Authorities' Association in an endeavour to arrive at a solution acceptable to all the Supply Authorities. Naturally, before coming to a decision all Supply Authorities will want to know the amount of the extra levy which would be involved ; and this will depend upon the extent to which it is considered the subsidy scheme should be expanded. APPLICATIONS FOR SUBSIDIES Eighty-eight applications were received from twenty-three Power Boards, including applications for reconsideration of the provisional subsidies granted last year. Subsidies were approved covering the building of 499-6 miles of line giving supply to 925 new consumers at an estimated capital cost of line construction of £303,396. The subsidies provisionally granted averaged 5-45 per cent, of the estimated capital cost, which is within the per cent, maximum allowed by the Act. The density of consumers in the districts to be reticulated is about two to every one mile of line. Details of these applications are given in Table I, and the consolidated position for the first four years of the subsidy scheme is given in Table 11.

Table I. —Summary of Applications Approved in the Year Ended 31st March, 1950

*ln 1949-50 the following applications were amended : Banks Peninsula, one 1948-49 ; Central Hawke's Bay three 1946-47 ; Franklin, five 1946-47, one 1947-48, two 1948-49 ; North Auckland, two 1948-49 ; North Canterbury, two 1946-47 ; Tauranga, three 1947-48 ; Waimea, one 1946-47 Wairarapa, one 1948-49 ; Waitaki, one 1948-49 Waitomo, one 1947-48.

38

Supply Authority. .Number of Applications. Route-miles of Lines. Number of Consumers. Estimated Capital Cost. Provisional Subsidy, Per Annum. * Banks Peninsula Electric-power Board 2 16-7 14 £ 7,756 £ 573 Bay of Islands Electric-power Board .. 1 5-1 6 2,309 156 *Central Hawke's Bay Electric-power 3 48-8 60 59,258 1,874 Board Dannevirke Electric-power Board 2 2-9 4 1,415 50 * Franklin Electric-power Board 8 30-1 37 16,333 800 Golden Bay Electric-power Board 1 11-2 33 7,153 358 Grey Electric-power Board 1 5-1 6 2,079 109 Horowhenua Electric-power Board 1 2-0 7 1,712 47 King Country Electric-power Board 2 71-8 98 29 35,376 2,048 Manawatu-Oroua Electric-power Board 3 17-5 12,045 611 * North. Auckland Electric-power Board . . 15 52-2 121 24,049 1,729 * North Canterbury Electric-power Board 6 16-3 20 7,178 498 Otago Electric-power Board 1 16-3 14 6,519 277 Rotorua Electric-power Supply 1 2-8 4 1,800 112 Southland Electric-power Supply 9 15-4 22 8,812 587 Tararua Electric-power Board 7 26-0 37 15,016 824 172 *Tauranga Electric-power Board Teviot Electric-power Board . . 6 7-7 17 3,918 1 1-0 1 280 21 *Waimea Electric-power Board 2 87-6 312 76,500 3,044 *Wairarapa Electric-power Board 5 33-3 40 28,577 1,854 Wanganui-Rangitikei Electric-power 1 11-8 13 6,200 186 Board 2,425 127 *Waitaki Electric-power Board 5 5-3 6 *Waitomo Electric-power Board 5 12-7 24 6,686 380