"A PENNY A UNIT"

Dominion, Volume 12, Issue 175, 19 April 1919, Page 8

"A PENNY A UNIT"

A PROPOSAL QUASHED I ELECTRIC LIGHT CHARGES DISCUSSED , "That the charge for electricity for private lighting be reduced by ono penny per unit." The above innocent, little clause included in tho Power Houses and Iraniway Committee's report to the City Council gave rise to one of the longest and most interesting discussions held in the Councii Chamber for some time past. Tho Mayor, as chairman of the coni- , mittee, said that he thought the committee should give tho council a lead in such a matter when it camo to reducing the. cost of an essential commoditity to the home. The Cit.v Council's electric light department was in a really good condition, and the concession he proposed to the couniiil would make would not entrench upon the revenue. It was impossible at present to add to the plant; and in anv case, there was set aside toi that purpose a sum of £ 111 tion to which there would bo the annual surpluses. This was not r.n clectioneeiing dodge. > ("Ha, ha!" and laughter.) Thev were now in the first month of a new year, and the best judges as to whether such a reduction should be given were surely those who had beeri concerned in carrying on the undcrta^. ng fo- a numbr if years past. The reduction of Id. per unit on the "lrrnte lighting would mean a sum of a vear. AVhen they considered that after providing for interest, sinking fund, and all special expenditure, there i.ad been •i surplus of .filfl.OOO, he thought that the council, in making the reduction, would be doing something that the peoplei had a rMit to. It might be said that so many of the accounts were so sma 1 that it was hardly necessary to make the reduction, but he held that if the council could make the reduction it should do so. Ho hoped that the council woukl pass the clause, as it was the howulen duty of the council to relieve the comniiuiiiv all it possibly cotiri. At that noint tho 'Mayor diverged to am. that ho was particularly pleased to remark about the tramway revenue that riirhfc through the war ucnod thev had never raised the fares-that the had been sufficiently strong _ to make that flourso unnecessary. He wlicd to lew the general feeling that had ) got roum( that the tramway finances were not very show. and he pointed out that, with the amount paid in interest, special appropriations, and the .-£2 800 surplus, there would be ample funds to pay a dividend if the enterpriso were being run by a private company. The. money they pant in interest represented tho money that would be divided amongst, shareholders in a private concern. He challenged anyone to say that the tramways were in a tender position were thev m tlio hands of a private company. 1 he earnin" power of our tramways was within '■ per cent, of the Auckland trams and it was well known that the Auckland ears could carry more passengers than the AVellington cars, which fully accounted for Hie difference. Then the.v had had .to .meet increased wages, and heavily increased prices for materials, and coal. Taking everything into consideration, he considered our tramway/; were ill n ■ It-»iKr financial position, and there was no need to feel alarmed or distressed. He hoped .m< incoiuiug council would i ol; disturb the finance or alter the charges. AUtlj tlio penny section through the city, and ; (lie liberal concession t : c.kets now issued, tho public practically had the throt-h fare so many people were asking for. Councillor ,1. Castle smd he was glad that at last the council realised that, the venture could stand on its own basis. He was glad-that at last it was recognised that it was due to the public that tho price of electricity should be reduced. ]l'e hoped it would only be a prelude to other reductions as the department developed. , , , . ... Councillor C. B. Norwood sakl that it was patent that one ot two tilings had haupened—either that tho council generally had neglected its duty for .its term of office or it had failed to realise it. He did not know whether the council s clnet officers had reported on tho matter- he was not in the room when the Mayor began to speak-and if they had done so, to what extent were they to be aftected by the proposed reduction? A voice: .£13,000. i, Councillor Norwood said that they all know the stress they had beon working under, and that with the higher rates for coal thev had to work as economically as possible," and do repairs out of revenue, Tho department, had to be run on business lines, and it did not seem to be so when in the dying hours of the council a proposal to reduce the cost of electiicil} was made. As to the Mayor's references to the tramways finance being strong-and sound, be was unable to agree with him. It must bo remembered that they had not been able to do anything much out nf revenue as they would have to do in normal times. He did not ajpee with tho Mayor on the point, and did not think the undertaking -would pay a dividend. He did not know if the chief officer had reported on tho reduction of the price of electricity j if so, ho would like the ieport read. Councillor AV. If. Bennett made the point that, if tlio department was doing so well, the council should do its utmost to extend its operations, and give the hundreds of applicants who had been re- , fused connections the benefit of it. . . Councillor L. Al'lCenzie, whilst giving credit to the chairman cf the committeo for iiis honest intention, said that they should not exercise jurisdiction m,tmch n matter in the dying hours of the council. but should rather lpave it to the next councii. There was no officer's report on the matter, and they should, he held, be guided by their experts in these matters. He said'that itie averugo house account for ciectricity was ss. 2d. per mouth, so that tho small housohohlerr the average householder, would benefit by the reduction by the magnificent sum of 1 flu., whilst large consumers (he had selected three) would benefit to tho extent of .£3O, .£24, and X2o—so it was going to be a great thing for the big consumer. At the Hat rate of fid. per unit the lighting in Wellington was tho cheapest in New Zealand, cheaper even than the Government's hydro-electric supply in Christchurch. The Mayor: If you can convince me oi that. I'll withdraw lho'c?i\use. Councillor M'lCenzie said ho had not a nhristclmrcii account with him, but he 'jyas suro our flat rate worked out cheaper than Christc'hurch. If the Finance Committee" coiild spare the money, wdiy not invest it in some other utilities—tepid baths—(laughter)—or workers' homes, j,te. The .Mayor: It can't be used for such purposes under tho Act. . Councillor Fitzgerald: You transferred •X',">o,ooo to the district account! Th'e Mayor: No, we borrowed it. Councillor Jl'Kenzio said he would like the clause referred back to the committee for fuller investigation and report, and also to see if these surplus moneys could not be used for any other purpose. Tho Mayor said ho had no objection to the clause being referred back. Councillor 11. A. AV right said that the fact that tho'big consumers wore to be favoured put a different complexion on the matter altogether. Already there was a good deal of irritation on the part ot householders because one of lucteis iiad been taken away, when in big houses tho two remained. J he small man believed he lost by tho transaction by having to pay increased cost. 'Councillor Frost,, after referring to tlio Chrislchurcb rates,.spoke in favour of I (he clause. They were elected by tho people and had » right to administer tho affairs of the city. Councillor Luekie: Pooh! Councillor Frost: "Pooh, yourself! The council, he said, had every right lo -reduce the charges, if it were only to compensate people for the exploitation bv oilier companies in Wellington. Tho reduction was recommended in the dying hour" of the council, because durine tho mir thev dared not take the risk. Councillor Frost said that councillors. had no right to take up a stand at the roriuest of some officers of tho council, -ml use information thfit was not nt the di*nosal 'if the rest of the council, Councillor M'lCenzie snid lie had every right lo get, information from officers of I he council, and he resented the inference flint lie was beini; made, a tool of | bv some officers of the council. Councillor AV. Hildretb said the proposal to give n slight concession to householders and ono running up to .£3O. to big consumers on tli* ere of an elee-

lion, was not one he was prepared to support. Tho arguments tiiat applied to the electric light department twelve months ago applied equally to-day. If money could be borrowed for the district fund, why not for workers' homes or tepid baths. 'J'hu Mayor: I'm advised you cannot— you must have it liquid. Councillor Luckio said the war had been over live months, and yet this proposal was kept till the dying hours of the council, and brought on without the support of any report from an officer of the council. If 10d. were to be the amount of tho reduction to ono house a big consumer, who was saving ,£3O, would receive concessions equivalent to 750 houses. It struck him as a deliberate attempt lo catch votes. Councillor J. 13. Fitzgerald becamo indignant at the clause being brought down without the knowledge and slipport of the officers concerned, and without a knowledge of how our rates compared with those of other places. Whilst the debate was in progress he had 6een ono of the officers, and obtained all tho necessary information about rates in other places, and there they were (and the councillor slapped them on tho table). After going into the figures at soma length, Councillor Fitzgerald said that Wellington seemed to lie a little better off than any other place. Hero we had l>een able to lend the district fund ,£50,000 to place £70,000 on deposit, and liiyl a sinking fund of ,£40,000. He would like to know what the position of the city of Wellington would bo without the electric light. He was distinctly of opinion that the purchase of the works hail been fully justified. Councillor Shorland favoured the reduction and said ho "would certainly vote for it on the incorjing council" (shouts of laughter). The report was referred hack to tho committee, which means that,the next time it comes up for adoption, in ils present or altered form, it will have to be considered by tho new council.