TE KUITI ELECTRIC LIGHT.

King Country Chronicle, Volume IX, Issue 746, 17 February 1915, Page 5

TE KUITI ELECTRIC LIGHT.

THE LOAN PROPOSALS. , MEETING OF RATEPAYERS. THE POSITION EXPLAINED. The meeting called by the Mayor for the purpose of having the position of the electrical installation explained, and the details of the loan proposals placed before the public, did not draw a large attendance. Most of the councillors were present, an apology for absence being sent by Cr Mostyn Jones on account of illness. The Mayor, in opening his address, said that the Council after having seriously considered and battled with the electic light question for two years, hal submitted the only possible proposals which were in the interests of the ratepayers. Briefly, the position was that the i istallation waß not paying and was incomplete and both the experts and the Council had arrived at the the conclusion that only the expenditure of further capital could place the installation on a paying basis. The Mayor gave the history of the installation, stating the original estimate was £6OOO, which was eventually increased to £7035. to various causes this estimate had been jxceeded considerably, the amount expended having now reached £9312, or about a fifty per cent, increase. He would not attempt to deal with the causes which led to this result, but no doubt one cause was the enormous increase in the demand for the light. He was not on the Council when the scheme was started, but shortly after he came back to office it was apparent that increased expenditure was necessary. The extra ten per cent, on the original loan was then raised, and subsequently further liabilities amounting to £1557 had been incurred. The original producer has not given satisfaction, and it was decided to install a new producer, costing £3OO, in order to give the opportunty to the manufacturers to put the original producer in order. Both producers would be required in the extension Which was necensary. In cunsidering the situation the Council was impressed with the absolute necessity of getting to bedrock, and decided to get a report from the best available electrical engineer. The report of Mr Black, of Wellington, was excellent and thorough, and the proposals adopted by the Council were based on that report. There was an unsatisfied demand for power and light, and it Was impossbli to supply the demand without duplicating the plant. Mr Black's scheme of expenditure provided for £7986, which, together with the liability already existing of £1557, made close on £IO,OOO. The Council had not adopted the report in its entirety, and had reduced the proposed expenditure from £7986 to £4973. The reduced amount would give them the essentials to work satisfactorily with for about five years, and in view of the war conditions it was deemed advisable to keep the amount as low as possible. If the loan was not carried the liability of £1557 would still have to be met, and the department would have no proßpect of being placed on a paying basis. Mr Black's report dealt with the financial aspect, and his estimates had been taken on very moderate lineß- Personally, he was satisfied the estimates would be exceeded. A principle which had been determined upon was the adoption of a two-rate system of charging for current. The peak load on the plant, which taxed it to its full capacity, was two or three hours at night, and the crux of the matter was to get a day load. By reducing the price from 8d to 2d per unit, it was anticipated the demand for heating, cooking, and power would be greatly increased and add very largely to the revenue without materially increasing the working expenses Mr Black's estimates on the modest basis adopted provided a revenue of £3280 and the working expenses were fixed at £1747. leaving a gross profit of £1483. Allowing for interest and Binking fund on the loan a sum of £B6O there was left a net pre fit of'£s73. This he considered, a very moderate estimate of what could be done, and if accomplished it would be one of the most satisfactory accomplishments this or any other Council had undertaken. The Mayor pointed out that a special had to be struck to meet the deficiency on the working of the installation. This was one of the most inquitious things that could happen, and the only way to remedy it was to bring the plant up-to-date and make it a payable proposition. The effect of the proposals, if carried, should be to do away with the necessity of a rate and make the department mora than selfsupporting within two years. The alternative suggested by Mr Black, if the scheme' was not carried, waß to sell the plant to a private company. This, to his mind, was unthinkable. In conclusion the speaker urged the ratepayers to have confidence in the town and in the outcome of the present struggle between the Powers. Crs Somerville, Graham, and Martin also spoke urging the necessity for carrying the scheme in the interests of the whole of the ratepayers.