ELECTRIC SUPPLY.

Franklin Times, Volume 9, Issue 686, 22 November 1921, Page 5

ELECTRIC SUPPLY.

(To the Editor);

Sir, —I am afraid that this letter will be lengthy, but as the subjects are urgent, I ask your favour. Your leaders in issues of Tuesday and Friday last and some correspondence, etc., furnishes the texts : Electricity, Water Rating. I will take the last first, and state that the Borough Council is entirely in the hands of the Valuation Department as to a re-valuation. We have a definite promise that a re-valuation will be made sufficiently early to allow next year's rating to be; made on a new and more uniform basis. As to the current year, the Council had to postpone striking the rates for months owing to the Department being behind hand with adjustments. The query re refund to the ratepayers now paying on high valuation is totally outside the question, unless it be done out of the Mayoris and Councillors’ pockets. As to the public services, electricity and water, the Mayor, Councillors and Engineer have been only too well aware of the position, and of the imminent danger} of total collapse, to say nothing of temporary inconvenience, and the public are to be congratulated that the position to-day is not worse than it is. It lis not long ago that the Mayor and Council of the day had proposals to borrow for the purpose of strengthening Bo.ough finance turned down, and bad wiser councils not prevailed dfciring Mr Lawrie’s recent term there would be no authorisation to borrow for these urgent purposes unless it could have been obtained recently. The plain facts are that the demand for electricity and water has out-grown the capacity of the plants m and that considerably as to electricity and provision to meet the increased .demand was no', made sufficiently soon. The consequence is that the power plant has been run continuously, until various units had to be repaired, ana to make matters worse the crank shaft of the most powerful en • gine parted. This engine was bought second hand, and I have heard advrese comments as to this, but the failure of the shaft and second hand purchase are sundered as far as the poles; Possibly the plant may become further disabled before new installation can be made. I am not troubling in the least about the good work or the failures of my predecessors, or of past Councils. My care and that of the present Council* is the conditions we found when we came into office. What were these conditions ? Macadem roads much broken up. Power plant weak. Heavy interest payments to meet. Current expenses, wages, salaries and sundry accounts to pay. Heavy commitments to face re electric cable and other plant, iso loan

money in sight. Corporations such as .the Farmers’ Union Trading offerin much higher rates of interest than local bodies had authority to pay. No philanthropists amongst our critics prepared to advnace money to the Borough • at lower, interest than could be obtained elsewhere. Bank overdraft £3040. Excess of expenditure over income for the first six months of the current year of £5608, leaving the Boifough overdrawn about the end ox October sorne hundreds of pounds in excess of the limit provided for by Statute. No income from rates until about the end of the present month worth mentioning. For additional power plant the only resource was to go cap ijn hand to importing firms to ask them to accept the Borough’s paper as temporary payment. Arrangements were being made with a certain firm when it imposed the extraordinary condition that the consulting engineer be dismissed, or it would not suoply the plant. Needless to say_ the Council elected to protect its servant, and fortunately another way out offered at once.

In reference to the present. What is the financial position ? £6OOO has been received on account of water loan, and of this sum £3OOO is already absorbed in wiping out a bank advance of £3OOO in respect of the hypothecated debentures. A further sum of £6OO is in hand, or will be, shortly in respect of water works extension loan bqth of these sums being 434 per cent. loans. Part of these loans must be used to refund general account from which considerable advances have been made for 1 loan works. Further hypothecation of bonds is anticipated say to raise £3OOO again. No further loans, probable fox(, say ten months, and the general account will be taxed to its limit, apart from loan works, so bv ransferring drainage loan and proceeds of hypothecated bonds-to electricity and water we shall have, say, £BOOO for expenditure on power plant, ariel lines, electric meters; and extension of water supply system. Againstthis we shall be committed to an expenditune of say £14,000 p> capitalise fully the new power plant on order and to place water supply on a satisfactory footing. Thus we are obliged in trading with the firm supplying power plant, to make payment of 75 per cent, b the account in Borough bonds oh such basis as will return this firm 7 per cent, on the landed cos,t of the goods. Can we, in view of what is stated', afford to play putting in temporary plant? Our effort must be to use the .present crippled plant to the best advantage, and to make ready.,for tne permanent installation as Rapidly as possible, and if we should at times be without light or water during the interm, which will be longer than pill the end o next February, then we expect consumerte to show their grit by making the best of an untoward position. f This letter is already too long tor your columns, or I would discuss other aspects of the question, but before closing I must say Mr Wyapt’s hands are full, , and I i-rust that he >vill not be subjected to unnecessary worry by useless complaints. Mr Wyatt will be able to do his best work only when he feels thao he has the confidence of |the council ancl of the public at his back. I p m, etc -’ JOHN ROUThY. November 21, 1921.