ELECTRIC POWER.

Hauraki Plains Gazette, Volume XXXVII, Issue 4967, 28 April 1926, Page 4

ELECTRIC POWER.

THAMES VALLEY BOARD. SPECIAL MEETING. A special, meeting of the Thames Valley Electric Power Board was held at Te Aroha on Friday, the chairman (Mr F. H. Cla,xton) presiding over the following: Messrs F. E. Flatt, W. E. G. Willy, J. Price, G. Howie, J. B. Thomas, F. M. Strange, J. Poli leu, J. W. Anderson, a,nd the secretary-man-ager (Mr R. Spraguei) and the chief engineer (Mr N. G. McLeod). The chairman explained that the principal business of the meeting was to review the balance-sheet. The figures for the past year’s working wdre eminently satisfactory. The meeting ha.d been somewhat hurriedly arranged in view of the forthcoming loan poll. The proportion of sjala;ry charges was in excess' of last yejai'. being due to the fact that the manager’s, engineer’s, and other salaries had been made retrospective. The trading department showed that the sales amounted to £42,977, as against £33,232 for the 12 months ended Ma.rcn 31, 1925. It was fairly safe to say that the trading account figures would not be as targe ,ais: in previous years because of the fact that it was reasonable to assume there would be a. falling off in ins!a.lations on existing lines. The executive had been of the opinion that there should be no reduction on the minimum charges, but rather it appeared preferable ..to apply the reduction on a butter-fat basis for the coming, year, which would be difficult to arrive at at the present time. The executive had suggested that if a reduction could be made it should be ma,de on the 192627 butter-fat. The totaj (surplus amounted to about £l7OO. The Question was, should a reduction be made? Mr Howie thought, .that the should be placed to a reserve fund towards the payment of renewals. The chairman explained that £15,000 had already been placed in a, reserve fund on elastic conditions; In ajiswer to Mr Flatt the chairman read a resolution affecting the. Te Aroha and- Thames boroughs, which were purchasing a bulk supply. The’ resolution was tot .the. effect that if the operations did not wiarra.nt a reduction to ordinary consumers, then the price of power to the two boroughs concerned should be increased. Mr Flatt said that if'hhe price was to be increased to Thames and Te Aroha boroughs the board could not give the-reduction as 1 suggested. If the reduction was given the board would tnbt' be .able to increase the charges to the boroughs when the. new contract with the Government was fixed, soi long as the present resolution remained on the minute book. The chairman ruled that the reduction undoubtedly prevented the board increasing the, price ,to extraordinary consumers, such a,s the bulk supply consumers. Mr Strange, pointed! out that the price to Thames and Te Aroha could not be. increased id a reduction was made, aiccdrding to the wording of the ‘resolution. Mr Blatt thought, that Mr Strange was reading something into the resolution that djd not exist. Mr Price contended that on the face of things. ,an increase could not be made on extraordinary consumers if .the board made a reduction to a section of the ordinary consumers. \ The ■ chairman.', said that mention had been made that if a reduction was made to ordinary consumers it was tantamount to basing a ; n increase’ on the extraordinary consumers. Whatever redu ctio.n w;ais agreed upon would be made from the coming yeair’s figures. The reduction would not.'actually lae made from the trading account.

Mr Fl,a,tt contended that it did not matter which . account the reduction cajne from so long as it was cigar that the board was not tying itself up with the Thames and Te Aroha borough councils in regard to future Messrs Strajnge and Thomas considered that the hands of the board would be tied if a reduction was made.

Mr Flatt thought the charges should remain ajs they were. If it was possible, to allow a 'reduction the farming community should have it. There would be an increase of ten per cent, at least in tire number of motors. The board should remember that the Thames and Te Aroha. boroughs should ze paying £7oo’ ,a yea;r more than at present to cover the 20 per cent, leakage, in powey which the boa.rd’s own consumers had to carry at present It was a problem to ascertain definitely what the coming figures would reveal. He thought the farmens should receive) power at a lower rate, but to do so.it wa-s appaiently necessary to increase the cost: to the Thames and Te : Aroha boroughs. To close the matter Mr Anderson moved that there be no reduction in the charges. The chairman pointed out that £l7OO had been gained without the assistance of the nomebnsumers rate, amounting to £4OOO. If. the'Question of borough charges wajs: to be. considered it would be fair to hold the matter over until Mr C. A. Arthur (Te Aroha,) could bei Mr G. Howie seconded .the resolution.

Mr Price though .that no reduction should be made on milking motors because .the increase on motors might show ; a smaller percentage of profit during the coming yea,r. Furtheir,• the trading account might show a loss on last year’s figures.

Mr Flatt pointed out that the board was not getting any profit from Thames- and Te Aroha, .and it wan, in his opinion, not in a position to allow a reduction..

Mr Strange pointed out that in the event of the forthcoming poll to borrow £150,000 being turned down the board's reticulation operations would be. restricted, and it would all tend towards a reduction in revenue.

- The chairman admitted on the actual figures a reduction was not -warranted. The point for consideration was whether a reduction, if any, should be on a sliding scale or on a bat ra,te basis'. On the. resolution being put it was declared Mr Anderson then moved that the question of chargets to the Thames and Te Aroha boroughs be deferred until a definite reply from the Government as to 'charges was received. Seconded by Mr J. Pohlen.

Mr Fla,tt moved as an amendmelnt that the question of the charges to the. boroughs' concerned be left in tlie hands of the incoming board member's.

The chairman .th, ought the amendment was in direct contradiction to the resolution.

Mr Strange' considered that the hands of the new board should not be tied in any way. That position would arise, if) the board did not consider the matter until the Government advfeed its changes. This,,would probably not be' until Arapuni was completed, which would be too long as far as the board’s opinion of the.

charges to the boroughs was concerned. He seconded the amendment, which was carried.