NON-CONSUMERS’ RATE.

Hauraki Plains Gazette, Volume XXXVI, Issue 4819, 6 March 1925, Page 3

NON-CONSUMERS’ RATE.

DISCUSSION BY PAEROA RATEPAYERS. MEETING CONDEMNS LEVY. Efforts for Redress.

-4 very largo meeting of latepayers attended ;at. the Gaiety Theatre, Paerda; last evening, to discuss the noncmfoumers' rate as levied by the Thames Valley Electric Power Board. His Worship the Mayor (Mr W. Marshall) presided, and in opening the meeting* apologised for '.he unavoidable absence of the president of the Chamber-of Commerce (Mr B. W. Porritl). who Was prevented from attend-

ing owing to illness. <she Mayor said that the meeting had been called at the request of the Pa-Toa Chamber of Commerce. He explained that he had no axe to grind, and the rate did not affect him personally so far as IBs property was concerned. All the same, he pic-

pared to lay all his strength into combat; ing the unjust and iniquitous nonconsumers' rate. He speaker stated that he admired the good work done by the board as* a whole, and there was no gainsaying that it had accomplished great work in the district. He explained at length the purport of his statement that led. to his saying that a loss of £IOO a week was being made by the board. He then outlined tne statemehta made by him when a deuutsition waited on the Minister for Lands and commented on the letters that had passed between the Minister and the board in connection with the matter. He said that the reply given by the board to the. Minister regarding his remarks in reference to the -closing down of the gasworks was unfair and misleading, and it was a pity that the board was not more reliable in its statements. The speaker said that as far as he had been able to ascertain the levying of £1 on each of a number of sections comprising one holding was

illegal, and lie believed persons would be justified in not paying the r.ate. lie read a portion of the Power Boards Act dealing with the levying of rates ant' explained the portion under which the board was working.

Paeroa was being supplied on a

commercial .basis, continued the speaker, and it was safe to assume that the reticulation of the borough had not proved an unprofitable ven- : ture to the board. He contended that the cost of electricity ‘and the levying of the rate in Paerba made an eco- . nomically unsound proposition. The - responsibility. for the injustice of levying the rate on Paeroa'lay with the board. If the income from sales of electricity did not meet interest and sinking fund on loan moneys of £750.000 authorised, then the board would be justified in levying a rate o-.-.ir the whole of the reticulated area, ini': the imposition of the non-con-sumers’. rate did not operate in the boroughs of Thames and Te Aroha. Representatives of those two boroughs had the same voting power on the board as the.representatives of those places in which the non-consumers’ rate operated, which was a gross injustice, as those men should not be eligible to vote on such questions. . The Mayor then proceeded to quote a number of cases showing how un--I<ii”ly the rate operated in the borough. He contended that even if the minimum of £1 a section was reduced lb 5s the unfairness and anomalies would still exist. A letter from a Morrinsville rate; payer was read complaining of the -jij justice of the rate in his district. . The case of a settler in AVaikino was also quoted in which it was shown that ■ the non-consumers’ rate of £1 had been levied on a residence on which a rental of 5s a year was paid, in a number of instances ratepayers. -on receiving the rate demand, had - found it necessary to consult a solicitor to ascertain the legality of the demand, all of which was unsound, .and a cumbersome and unfair imposition. . Referring to a sub-leader which had appeared recently in an Auckland . papu, the Mayor pointed out that the Borough’Council had moved in the matter as far back as April last. Dealing with the- auditing of the -balance-sheet and the delay in receiving a copy, the speaker said that he saw no reason why the Audit Department could not carry out its audit earlier after the close of the financial year.

Concerning the protest made by the Bj-ough Council, a reply received by Mr Poland from the Minister indicated that the department’s reply was practically word for word the same as the report submitted by.the board to the Minister, which showed that the department’s view was really only the view of the board, and the speaker thought that the member for the district (should be asked to voice his protest in no uncertain manner. Mr E. Edwards then moved : “That this meeting of Paeroa ratepayers endorses the action and protests against the non-consumers’ rate made by the

Seconded by Mr W. J. Ellis and carried by acclamation. In thanking the meeting for the resolution the Mayor said that such expressions from a large and representative : meeting of ratepayers strengthened his hands considerably, and gave proof that his interest in the matter was not only justified, but was appreciated. Summing up the position, the Mayor -contended that the rate was unjust to >ce r tain constituent districts, and unjust and oppressive to persons in straitened circumstances and to small holders, in addition to being economically unsound. He said that the rate was difficult to levy, hard to collect. and an experiment which had proved faulty. The action had tended to divert power boards from strict •commercial principles. Mr F. E. Flatt, the Borough Council s representative on the board, was then called on. to address the meet-

ing. He fully, outlined the machinery that had brought about the rate, and stated that although the Power Boards’ League had asked Cabinet for a lion-consumers' rate, a Bill was brought down and rushed through the House without any one offithe thirty power boards operating in New Zealano knowing the contents of the Bill.

Mr Flatt explained his views on the matter when it became law, and stated that the board’s chairman'(Mr F. H. Claxton) had made a trip r .o Wellington in an endeavour to have amending legislation brought down during 1924. reducing the minimum from £1 to 5s a section, but the Minister refused to sanction the proposal. He assured Mr Claxton, however, that amending legislation would be provided during 1925.

The speaker maintained that Pacroa should be in a position to purchase its power in bulk, even if it meant retailing the power at a slightly higher rate. He stated that, in his opinion,- the country members on tne board did not show the town members the consideration to which they were entitled, especially in view of th<> way the townspeople had supported the country.

Commenting on the rate itself, Mr Flatt said that the board had nd need to collect the rate, as its present financial position did not warrant it. Any benefits received by electricity were now more or less nullified by the levying of the rate. Showing the advantage the farming community was receiving Mr Flatt said that, on his own figures, electricity costing £7 10s on tlie flat rate basis equalled somewhere about £33 6s 8d by the meter seytem. In other words, approximately one-third of the revenue received by the board accrued from the meter rate consumers.

In 'lie matter of rating single or separate sections', .the (speaker said that legal opinion was being sought, and the result would be made public as sod as possible. In his opinion, continued Mr Flatt, if the board had felt so inclined the calling up of the rate coukl have been very well deferred until such time as Cabinet could further consider the matter. The board’s ba'ance-sheet disclosed the fact that the money was not required, and It would not have been penalising the board in any way to have held off until later on in the year. QUESTIONS. In answer to Mr F. C. Bly th the chairman said that the rate had been struck not because the board needed the .revenue, but because it wished to force people to take electricity. Mr Flatt said that a number of anomalies existed, but he championed the good work done by the board in other directions. But he saw no reason why the board should inflict hardships by means of a noii-consum?rs’ rate.

In reply to Mr P. E, Brenan Mr Fatt said that the people in the country paid ’£7 10s for power equal in airount to £33 6s 8d worth received by townspeople for lighting. “These figures are according to my own deductions, and arc not official,” added Mr Flatt. The chairman said tiiai the fundamentals of the rate should Le dealt with and no distinction made between town and country.

Mr Flatt said that although the bulk of the protests had come from Paeroa, other places would be similarly penalised, especially Waikino ahd Karangahake. He did r.-.< know why other places had not inw”este,l them' selves more in the matter.

Mr C. N. O’Neill said it was evident that if any redress was to be had Paeroa would have to make a move in the matter, as apparently theie would be no redress forthcoming from the board, and he suggested that Parliament should be approached direct by moans of a petition. He .then moved : “Tnat this meeting earnestly petitions the Government to consider taking over in its entirely the generation, transmission, and supply of electrical energy throughout the Dominion; and that the member for the district be requested to present this resolution to the Prime Minister and the Minister for Public Works.”

Seconded by Mr R, B. Penlington and carried.

Mr Brenan said tliat lie did noi think the Government was in a position to carry out the administration of the board in a better manner than the board.

Mr O’Neill further moved: “That a sub-committee prepare a petition to be circulated and presented to Parliament setting out the injustice of the application of the non-cbnisumers’ rate, and praying for an appropriate remedy.” Seconded by Mr G. R. Davidson and carried. In answer to Mr Cassrels Mr Flatt said that the representatives of the Mo’-rinsvllle Borough and Matamata were not with him in his objections to the rate. The Mayor suggested that the question of si petition to the House should stand down for the present, and this was agreed to. RESOLUTIONS. The following resolutions were then moved, and in each instance they were unanimously carried: — Moved by Mr L. E. Cassrels, and seconded by Mr R. I. Roberts: “That in the opinion of this meeting the lev? of a separate rate against nonconsumers, which means compelling them to pay for electricity irrespective of whether they need it or can afford to pay for its installation and consumption, is entirely unjust; that it creates Intense prejudice against the use of hydro-electricity, besides tending to turn power boards from those strictly commercial principles

which make for good management.’ Moved by Mr J. W. Silcock, and seconded by Mr G. P. de Castro: “Tnat this meeting earnestly requests the Government to repeal absolutely the power which boards now have under the 1923 Act to levy separate ratep against non-consumers of electricity, and that in its place the power board be given power to levy a general and uniform rate on all property in the district or within ten chains of the board’s mains or the mains of any licensee receiving electrical energy froiii the board, as in the opinion Of this meeting this would be a much more equit,able manner in which to raise funds if the revenue from sale of electrical energy is not sufficient io meet expenses.”

Moved by Mr E. Edwards, and iseeon led by Mr R. Waddingham : ‘ That if the power to levy the non-consum-ers' rate is to continue, then the Act should be so amended as to prevent representatives of constituent districts not affected from voting on the proposal to levy the rate, and that the levy should at all times be made early in (he year so as to give ratepayers an opportunity to use electricity to the amount of the levy; and that the minimum should be reduced to is, in accordance with the provision of.the Rating Act.” Moved by Mr 8. J. Hedge, and seconded by Mr G. E. Aden: "That in the opinion of this meeting the audit of local body accounts should be kept up-to-date, so that an audited balancesheet should be available shortly after the end of each financial year; and that the balance-sheets of the board should be open for inspection by any ratepayer during office hours at all the offices of the board.” Air O’Neill suggested that.a full report of the proceedings of that meeting should be forjvjarded to the chambers of commerce and other local bodies affected by the rate within the board’s reticulated area.

In reply to Mr F. G. (Otter the Mayor said that licenses granted to power boards were authorised by Parliament by proclamation, and he did not think that the ratepayers could compel the issue of a license to the boroutht In answer to Mr de Castro Mr Flat: said that the' cost of lighting at Tnames was lOd a unit, but the power rate was considerably cheaper. „

Replying to Mr Cassrels the Mayor said that as he interpreted, the Act, the board was given discretionary power to strike a rate over any particular area.

Mr Flatt said that the present number if consumers could be nearly doubled without adding greatly to the expense to the board, and with ap increase in the number of consumers the cost of electricity would be reduced.

In reply to Mr J. Hubbard Mr Flatt said that Thames and Te Aroh.a pail on the maximum demand used. The meeting terminated with hearty votes of thanks to the Mayor, Mr Flatt, and the president of the Chamber of Commerce being enthusiastically carried.