POWER CHARGES.

Hauraki Plains Gazette, Volume XXXX, Issue 5459, 9 August 1929, Page 2

POWER CHARGES.

POSITION OF BOARDS. REDUCTION WANTED. “That's the answer we’ve been getting for eight years,” said Mr F. E. Flatt at Tuesday’s meeting of the Thames Valley Power Board, when informed by the chairman, Mr F. M. Strange, that the Government did not deem it advisable just at present to press for a reduction in the cost of electricity to supply authorities, "owing to the losses sustained by the Government in the operating of some of its power stations.”

Mr Flatt asked if the Government had yet defined its policy in respect to Dominion, island, or merely local schemes. Could the North Island, for instance, recoup developmental losses from the profitable South Island schemes.

Mr Strange said that the Power Boards’ executive committee did not deem this an opportune time to press for a reduction of charges. Last year the Government had lost heavily ou certain works, but this position might easily be reversed next year, in which case power boards could more reasonably request a reduction of charges. Mi' Flatt : “According to the official report the Government last year made a profit of half a million on its hydroelectricity schemes. My point is that the Government in profitable Government station areas should reduce its charges to the supply authorities, who in turn would give the people cheaper electricity. Is it the policy of the Government to make each island, each province, or each territorial scheme self supporting ?” Mr H. M. Corbett mentioned that when the Hon. E. A. Ransom, Minister of Public Works, last visited Paeroa he had declared that when the proposed three units were ir. operation at Arapuni a net return of 8 per cent, on the capital cost of the full eight units would be made. The manager, Mr R. Sprague, explained that in the event of the Government taking over the Southland Power Board’s schemes, the South Island profits would be greatly reduced. Mr Flatt asked if the Government had laid down a definite policy on r.hese points. Mr Sprague : “No. There is no definite intimation of how the Government proposes to distribute its hydroelectricity profits and losses.” Mr Flatt: “They have been saying that now for eight years.” Mr Sprague said it might not be long before the North Island would return higher profits than the South Island. The chairman assured the meeting that the executive committee of the Power Boards’ Association had the matter of reduced costs of power to boards well in hand.