POWER PROSPECTS

Bay of Plenty Beacon, Volume 8, Issue 83, 22 June 1945, Page 3

POWER PROSPECTS

BAY OF PLENTY BOARD CHAIRMAN'S ANNUAL REPORT Tlic chairman, Mr W. T. Burrett reported as follows at tlie annual meeting of the Bay of Plenty Electric Power Board, held at Opoti'ki:— Today marks tlie board's sixth annual meeting during a period in which our country has been at war and naturally conditions have of necessity been far from normal. In spite of such retarding influences as pertain to a war economy I am pleased to be in a position, to report in this short review of the year's operations a very successful year's activities. The year just ended is the first complete year whereby reductions in charges by way of discounts have operated. The nett revenue indicates a small increase, and the recovery in offsetting the total discount for the year, amounting to £5523 is gratifying. At the same time the board must keep, in mind the necessity of creating reserve funds for future extensions and extra maintenance. The nett surplus from all departments amounts to £4790 compared with £4893 for the previous year. The working or operating expenses were £37,104 of which £23,498 lor the purchase of power was the largest item and represents 14.1 per cent, of the board's electricity revenue. Capital charges total £14,279 per annum practically another 25 per cent, of reA r enuc. Even in these difficult times the trading department has been noticeably active showing an increased turnover, and is one of the factors justifying the foresight of building up stocks as far back as 1940 when supplies of material and equipment were available. Again I wish to emphasise that the polic3' of the board's has been and is, to maintain a safe and sound financial position in order to serve and assist in the development of the resources of tlie community within the.scope of our supply area. With this objective in view the position to date can be summarised as follows: — Original loan liability £208,700, capital outlay to date £220,G10 j loan repayments £38,000, sinking fund reserve £9310, depreciation reserve £15118 bad debts reserve £3308, invest- ' 1 p--' ments in Government stock £/000. It is worthy of note that the generally unsatisfactory conditions brought about by the power shortage situation, have been referred to in past reports and correspondence submitted to the board with something approaching monotony; but it is hoped that following the cessation of hostilities in Europe we may look to the near future, for some degree of relief. It is a generallj' accepted fact that the standard of living increased in exact ratio to the production of electricitj' and it is esential that an adequate supply of power is available otherwise the Government's rehabilitation schemes and post war development will be seriously handicapped. The success of which will be the, chief contributing factor in the future progress j of this board. I

During the year the board adopted a superannuation scheme for the employees and it is hoped it will receive lull support from the present staff. No doubt this year lor the management has been as lull ot dill'iculties as tlie previous years but in spite of curtailment of power, shortage of materials and labour, the board has made progress, and we are indebted to tlu> engineer-manager unci staff for the success of their efforts in this, direction, and on behalf of the board, 1 would take the opportunity of expressing appreciation of their good work. For another year the board has ' received good service from our consulting engineers in Wellington, Messrs Vickerman and Lancaster. In closing 1 would like to record my personal appreciation of the interest and co-operation of board members throughout the past year.