HUTT POWER BOARD

Hutt News, Volume 2, Issue 4, 20 June 1929, Page 6

HUTT POWER BOARD

CHAIRMAN REVIEW FINANCES

The chairman of the Hutt Valley Power Board (Mr C. W. Press) in moving the adoption of the accounts at Thursday's meeting said that while agreeing that the net profits as shown by the balance sheet did seem to indicate a small result on the capital outlay, it must not be overlooked that the operations and accounts were not shown as

chose of an ordinary commercial undertaking would be; therefore it was as well to bear in mind that before arriving at the net profit as disclosed by the balance sheet £6013 17s 10d., provision had

ueun made lor interest on capital

*j18,451 Us Id and depreciation ;uj.u,ioi4 ; wiiiie capital repayments amounted to jtSbiteTs lid, in reality niaiving a total net profit of £38,181 vs lOd. Tms in nib opinion was the true position to put.be-. xore tne board'a constituents, many 01 whom he felt, were under the impression that the suggested net profit of a>oOl3-l/s j.Ud was nardiy adequate on a capital outlay of £384,000. A commercial undertaking would no doubt treat the position in tills-manner-: liy distributing interest paid £ie>/±&± as a dividend of t>£ per cent placing capital repayments of £iJO34 t>s lid to reserve and depreciation of £10,----162 to depreciation account, while the net profit- of £6013 17s lOd would be carried forward as a balance^.-Jie believed that nobody could cavil at his showing and it also demonstrated forcibly to consumers that the rates charged were not exorbitant, although he did not deny that there might be a few anomalies which as discovered, could probably be adjusted.