HOROWHENUA ELECTRIC POWER BOARD.

Manawatu Herald, Volume XLIV, Issue 2448, 1 July 1922, Page 4

HOROWHENUA ELECTRIC POWER BOARD.

ENGINEER’S ESTIMATE. . ; LOAN OF £260,000 TO.BERAISED. At the last meeting of the Horo•when.ua Electric Power Board the engineer','Mr T. R. Overton, M.I.L.h. submitted his 'first report, which v/as as follows: “In company with the chairman and members of the Board, I have j examined the more important lout- J es of transmission and distribution lines in • the : county and boroughs comprising the Board’s district, and generally speaking, I am of opinion that the area is well situated for the distribution of electrical on account of being, as it is, richly endowed with town and country population. . “The load on the electrical system will be built up between centres-, chiefly from dairy and flaxmilling industries, whilst various industrial concerns and dwellings requiring power and lighting installations will be connected' in the towns. “In order to bring an ever-in - I creasing demand for electric power and light within reach of these mills, farms, factories and dwellings, very heavy responsibilities in matters of finance, organisation of staff I and engineering is entrusted with

the Board, but I have no doubt thai each member will I'eeognise, to the full measure, these responsibilities, and for my part, I realise from experience that the ultimate success of such a large undertaking will rest on the amount of economy and efficiency exercised therein, from commencement to completion. THE LOAN PROPOSAL.

“As instructed by the Board at its las.t meeting I have made an estimate of the amount of loan money required, the same being set forth in the accompanying schedule. “From these figures you will observe that the total sum is approximately £260,000, which could be uplifted, say, at the rate of not more than £75,000 per annum, for a period of three years. “Whilst I am confidenf'of having made adequate provision covering the cost of the job and probable extensions thereto, it is difficult to say how much should be uplifted dur-

ing- the third year of operation, as requirements will depend upon the amount absorbed of the allocations for service lines, and loans to assist consumers in the cost of their installations, which is rather a doubtful quantity. “After careful consideration I would recommend that authority be sought from the ratepayers to raise a loan of £260,000, and in asking for this consent at the poll, it can be made clear that only actual requirements will be uplifted to complete the scheme. i -SCHEDULE of estimated LOAN REQUIRED. £ Extra high,-high and low tension lines 140,000 Transformers and substation equipment 15,000 Street light, fittings, etc., 5,000 Instruments and tools 1,000 Transport and pole-car-ting equipment 3,500 Alteration to existing telegraph lines 3,750 Land, buildings and employees 5 residences 7,000 Allocation for consumers’ service lines 10,000 Allocation for financial assistance to consumers 20,000 Preliminary expenses and office equipment 1,750 Contingencies 10,000 £217,000 Interest at 6 per cent, and sinking fund of 1 per cent during first year of each portion of loan £15,000, interest and sinking fund on same £1,050 16,050 Interest on, say, £150,000 during second year £lO.500, interest and sinking fund on same £735 11,235 Cost of raising loan outside N.Z. at 5 per cent 12,125 £256,410 GENERAL. “Question of policy, staff organisation and details of engineering will be dealt with at a later date. “Before concluding, I would like to express my thanks for the very able assistance rendered by the chairman and njembers of the Board, the County Engineer, Mr Anderson and Mr Goldsmith, while going through the district in order to obtain the information accessary for this report. - The Engineer added the following ! note: — <• “This estimate of £260,000 has been literally made up, as it is prudent to obtain ample authority from the ratepayers in order to avoid repeating loan polls, which have been the expensive experience of many Electric Boards in New Zealand.” The report was considered in committee, and after a brief discussion the following motion was passed on the motion of the chairman, seconded by Mr Matheson : “That the Engineer’s report be adopted, and. that the necessary steps be taken to take a poll of the ratepayers for authority to raise £260,000 by way of loan.” It'-was decided, on the motion of Messrs Seifert and Matheson, “That the term of the loan be not more than 33 years, nor less than 20 years, with a sinking fund of one per cent.” It was decided that the Chairman’s remuneration be £2OO per annum. ■ The chairman said that the poll

would be ready for decision in about six weeks. He would address meetings in all the centres, of which there were about thirteen. The Board thought it was very necessary that the Engineer should accompany the chairman on his tour, so that any technical questions asked could be fully answered.