POWER BOARD LOAN.

Hauraki Plains Gazette, Volume XXXV, Issue 4671, 7 March 1924, Page 2

POWER BOARD LOAN.

PROPOSAL BEFORE RATEPAYERS. MEETING AT PAEROA. A public meeting of ratepayers of Paeroa was held in the Soldiers’ Club on Wednesday evening, when Mr F. H. Claxton, chairman of the Thames Valley Electric Power Board, explained the object of the board’s proposal to take a poll to raise a loan of £150,000 for fmther reticulation work.

His Worship the Mayor, Mr W. Marshall, occupied the chair, and Messrs R. Sprague, secretary-manager to the board, and G. P. Gauvain, consulting engineer, and Mr F. E. Flatt, borougn representative, were also in attendance.

In introducing Mr Claxton the Mayo, said it was regrettable that the attendance was so-small. Continuing, he said that the district bad altered considerably since the inception of the beard. The ratepayers had followed the work of Mr Claxton with great interest, and had expressed admiration for his abilities on the board, as welt as on other important institutions. With regard tp the borough’s representative on the board, Mr F. E. Flatt, the Mayor said that the ratepayers had followed his efforts with a feeling of‘pride, especially in view of the fact that he had been elected acting chairman of the board during Mr Claxton’s absence in Australia. Tin’s v ent to prove, said the speaker, that Mr Flatt had followed the work of the board with intelligent interest and had ably done his duty to the ratepayers. The Mayor said he felt sure that the meeting would welcome the opportunity of gaining first-hand information of the board’s operations, and if the proposal for the loan of £150,000 was warranted, then it was the duty of the ratepayers to give the chairman of the board an attentive hearing and on the day of the poll to accord support. The Mayor asked the meeting to realise that the power board was purely a local body, and as .suck all its business was carried out in the interests of the ratepayers.

Mr F. H. Claxton, in opening his address, thanked the Mayor for his kind reference to his efforts while r»n the board. He stated that it would be thirty years this month since he commenced business in Paeroa, and ho wished to congratulate the townspeople on the progress made during that lime, and especially during the later years. Referring to Mr Flatt, the speaker said that in him the ratepayers had a man of sound sense and one who had used his best endeavours to fuifher hydro-electricity development in the district for the benefit of the ratepayers. It had not been a question of flattery by the board in appointing Mr Flatt acting-chairman ; he was justly entitled to the position, and it was hoped that at some future date he would become chairman for a longer term.

A Voice : We will get our light for the bowling green cheaper then. (Laughter.) Mr Claxton briefly traced the history of the board since its inception in 1920, mentioning the two loans that have been carried. The proposed loan of £150,000 wa,s required to meet the demand for reticulation in areas which four years ago did not warrant consideration, and which from time to time became closer settled and claimed the use of electricity in its varied applications; areas which would help by an increase of consumption to bring the overhead charges to a minimum, and thus eventually lower the cost of current to the individual consumer. The revenue could not be used for other purposes and would be applied to reducing charges. Witli a view to .supplying the wants of the consumers l depots had been established at Thames, Ngatea, Paeroa, Te Aroha, Morrinsvllle, and Miatamata, where stocks of all electrical goods in everyday use were kept and sold at lowest prices consistent with fair trading. Troublemen were stationed at intervals all over the area whose duty it was to remedy any defect al .short notice. A special high tension service was in operation, extending from Thames to Matamata, all connected with Te Aroha, which permitted the prompt issue and receipt of the consumers’ wishes and the board's instructions at a minimum of cost. A resident engineer had been appointed, and it was hoped that with the close supervision of the maintenance staff and the use of efficient facilities all details of a supply scattered over an area of 2000 square miles would be promptly and successfully coped with.

Recent figures showed that 500 miles of poles had been erected, carrying 260 miles of 11,000-volt, 140 miles of 3000-volt, 300 miles of low tension 150 miles of consumers’ lines, and 85 mile.s of telephone line, or over 900 miles in all. Over 4000 consumers were being supplied, including 1500 at Thames and Te Aroha, both of which boroughs were supplied in bulk by the board. Exclusive of Thames and Te Aroha just over 800 milking motors were being used, and 232 motors for other uses. The total connected load was 8200 h.p. The total revenue for the year ending March 31, 1923, amounted to £29,870, and there was every reason to believe that toe revenue for the year ending March, 1924, would reach £43,000. The surplus from the t-ading departments had materially assisted in obviating the necessity for striking a rate Without this assistance it would have beeii impossible tp carry on without a rate, as there were charges on a large capital expenditure for which a sufficient revenue could not be secured in the earlier years by the sale of current alone. To enable consumers to take full advantage of the service a system of repayment by instalments for installations had been evolved. Under this head nearly £30,000 was standing on the books. With comparatively few exceptions the repayments were made regularly, and from now on a steady reduction of that amount might be looked for. The stocks carried in this connection amounted to over £16,000, making a total of £46,000 used in that portion of the board’s work. Tn the matter of power charges, prior to the late charman first visiting

this district explaining the scheme the Public Works Department had suggested a price that current would . be supplied for, and the board’s statement was based on that price 'x After the first loan proposals were fl carrieu, and before the board was in a position to make a contract with the department, the Government charges were raised approximately 25 per , cent., and the price fixed for five years. In view of the decreased cost of benzine and the apparent disadvantage of the present minimum charge to the small herd-owner, the board had considered lowering the minin urn charge for a 2 h.p. motor - and reducing the 70001 b butter-fat limit. This would enable the owner of a small herd to start under a more favourable condition than at present, and would also give a reduction itH the larger consumer by charging the reduced rate of l-3d per lb from a lower starting point than at The finance committee had recom-™ mended that after April 1, 1924, the minimum charge for 2 h.p. motors and under should be £l5 per annum up to 50001 b of butter-fat, with a charge of l-3d per lb for all over that . quantity. The minimum charge for I smallci motors now installed was to remain as already arranged, but the limit of butter-fat would be made 50001 b, in common with 2 h.p. motors. There was every reason to believe that the committee’s recommendation would bo adopted by the board, and would operate from the beginning AL the financial year. From actual ing expenses to date that reduction was not warranted on the presen: number of consumers, and the board therefore proposed to take advantage of the latest amendment to the Power Board’s Act and collect what had been called a non-consumers’ rate. In cities and boroughs a portion of the water rate was charged on all sections within a certain distance of water mains, even though water was not laid on to the section. In a siml- I lar manner power boards were allowed to rate every property within 10 chains of an erected line a maximum of £3O and a minimum of £1 per annum. A further provision was made that the ratepayers should be entitled to electricity free to Ihe amount of his rate. The old Act made it compulsory to strike a rate, if needed, ■ equally over the board’s area. This was manifestly unfair to the ratepayer who, through no fault of his own, was unable to get the benefits of the service but was penalised to make up the deficiency of his more fortunate neighbour. Under the new provision it was believed that the increased consumption induced by a more favourable tariff and the pressure of a rate would assume such proportion that reWliue would equal expendituie without the assistance of a rate of any

sort. The one-positive fact that all must accept was that the service must pay its own way, as there was no hope of a subsidy or grant from a paternal Government, which was frequently the shelter in time of storm of manyjji< local governing bodies. Regarding the loan proposal, the immediate want was capital for the^ z trading department, which so far had been carried on witli monies now necessary for construction works. As the money available for that work „

was almost exhausted, it was sary to find other money to finance the trading section and reimburse tho loan account. This would lequire approximately £50,00'0, the full amount proposed to be raised by way of loan for the present. Installations would not be made io the same numbers as in the past two years, so gradual reduction under that heading was ex-. pec ted. The money would be borrowed in ;>.ich a way that as it was released from use for installation work it could be applied to further construction work as new opportunities offered. The board could nOt present a definite programme for the expenditure . of the further £IOO,OOO, except that it hoped to be in a position to carry on extensions that would become necessary with the opening up and development of the huge area over which it operated without having to appeal to the ratepayers for finance for each individual extension —a lengthy and costly proceeding. The progress of the board to this stage was an indication that the ratepayers\confidence had so far not been abuseu and should they further, authorise the board to pledge their good name, Mr Claxton said he felt sure that such confidence would be equally respected. The following roads needed the consideration of the board, and some of them would warrant reticulation in the immediate future : Puketurua, Ti >oh i a-Tah un a, Gordon- Waharo Hoe-o-Tainui, Kiwitahi-Waharoa, Nga-tea-Kaihere, Kereone settlement, Ti-rau-Te Papa-Waiomo, Putaruru-Wai-makariri, Starkey’s. Tirau-Cambridge, Waikino-Waitekauri-Maratoto, and Morrinsville-Patetonga-Waitakaruru. At present there was good load promising down to Tahuna and Patetonga. This line was desirable as a loop line for the Hauraki Platas, but* would not be constructed unless theiW*' was a reasonable chance of it proving remunerative. Again, a number of inquiries had been made for a line from IVaikino, through Waitekauri, tc Maratoto, with a large prospective industrial load. This line could be continned to connect with the Thames line a Hikutaia, and form another-*' loop, giving extra security to Paeroa and Thames. Negotiations were also proceeding with a view to supplying Waihi with current. These extensions, would entail a considerable outlay, and if undertaken must be put in hand when conditions of supply and transport and labour were favourable. They mighnot be in that particular district, but each additional consumer helped t° ca»ry the burden of overhead charges and bring nearer the prospect, c-f cheaper power to all. Mr Claxton concluded his remarks with a request for the co-operation of - those present for a successful poll ml March 12. Mr Flatt said that the lean money / was needed to give the people theife, light and power in the country * trlcts. It was needed for further development, and was not required to meet any deficiency in former . mates. ' ‘j

< . > Questions were then invited. \ In reply to Mr W. J. Ellis Mr Cla?;dm said that the £30,000 saved on j jrorinei estimates had been spent in work other than that orig/inally set out in the estimates. A eonsidt rable amount of work had been done on the Hauraki Plahis area in particular that had not been allowed for ii’. the original estimate. The board felt quite satisfied that it could pull through without striking any special rate. Mr Brenan asked if the board proposed to increase the charge for lighting Mr Claxton replied that the light- ' ing charges had already been increased. At the outset a 32-candlepower light cost 6s per annum, which had , been increased to 9s. per annum, The increase in lighting charges did not apply where power was also consumed. The board had taken into conj sideration that the person using lightv ins only was contributing about M per annum, whereas a person using power would contribute about six times that amount. Mr Ellis suggested that meters s .should be installed in evety home. Mr Claxton explained that in countin' districts the system would be too costly and too cumbersome, and the ' extra cost would have to be borne by the consumers. The meter system had been fully gone into, and the board had come to the conclusion that the prevailing scheme was the better •L one. The Mayor asked if the large consumer of light should not ;>e put on a footing similar to the small consumer of power. Mr Claxton said he did not know cl any system regarding variation in the charges, but he would be prepared to go into the matter. It was all a question of getting a certain amount of revenue for administration as fairly as possible. The suggestion was made by the Mayor that the board’s balance-sheet should be available to the public, and that a notice should appear in local papers notifying where it could be seen. Mr Claxton said that the board was onlj’ pne cog in the' whee’s of local body’ government, .and would be always willing to supply full informa- ■ tion to the ratepayers. Copies of th 3 T' balance-sheet were sent to all local bodies, and every representative o:i the board had copies. In answer to Mr Flatt Mr Claxton said he had accorded the fullest consideration to the question of reducing the charges for light supplied t» the Paeroa bowling green, and could only offer the charge at the same rate as was given the dairy factories after peak load hours. Regarding the non-consumers’ rate Mr Claxton said that as far as he knew at present the rate would be approximately £1 per section. The Mayor said that the rate would be a most unfair one. It v,'ould mean a serious percentage of increase, and, in his opinion, immediately open the question of town versus country. Mr Claxton stated that the Act at present did not permit of any other * administration. In answer to Mr Brenan Mr Claxton said that the present staff could bundle nearly double the number of jp consumers without any great increase ~ ii.i administration charges. He was of the opinion that a larger number of consumers would tend to reduce the charges for electricity provided the Government charges were no higher. Tim levenue obtained in the towns was generally higher than that of the country. Mr Hubbard asked if more people would avail themselves of power if . the price after peak hours was reduced. Mr Claxton said he did not think that the price made any appreciable difference after peak load hours. A hearty vote of thanks was accorded Mr Claxton and his staff for meeting the ratepayers and so clearly and readily answering the questions submitted. • hi acknowledging the thanks Mr Claxton asked the meeting to support the loan next week, and *o look on the matter as a business proposition. A hearty vote of thanks was also accorded His Worship for presiding.