HOROWHENUA ELECTRIC POWER BOARD.

Manawatu Herald, Volume XLV, Issue 2560, 27 March 1923, Page 4

HOROWHENUA ELECTRIC POWER BOARD.

At the last meeting of the above Board, a long discussion took place npon the policy of the Board in regard to -doing" repairs for consumers and'trading in fittings. Mr Gunning asked "whether the Board would be prepared to advance money to consumers to instal machinery and not charge anything in the way of interest until power was available. This might be preferable to waiting until the power was turned on, because the Board would then commence to receive revenue as soon as power was available, and farther, there would not be the same rush as if everyone wanted installations at once later on, with a possible shortage of men. Another point raised by Mr Gunning was whether the Board would *stock and supply motors. Otherwise there might be such a run on them that the supply would not be equal to the demand.

The chairman said the Boards that were advancing money as suggested had to take up more loan money than they could use, and they were utilising it by putting in installations for consumers. This Board was only taking up the money it required. They had already discussed the pros and cons of assisting consumers and decided how far they would go, though, of course, it might be advisable later to go further in that direction. The question of trading in supplies had not been discussed by the Board, but from the experience of some of the Boards, they needed to be very careful. The Board’s main function was the reticulation and sale of power, and they made it quite clear when going through the district that they did not propose to trade in supplies. The Board would arrange for the linking up of blocks of consumers but in all parts of the district various electrical firms would have local electrical agents for the suppy of requirements. He had no fear of a shortage of motors. The Board should feel its way very carefully on the question of going in for supplies. Mr Gunning: Motors are an absolute necessity. The chairman: One Board bought some hundreds of motors and has them in stock to-day. Motors can now be bought at half the cost they paid.

Mr Matlieson moved that a sub committee be set up to take into consideration the whole policy of wlie tber the Board was going to become a retailer of supplies or not The matter was largely one of fin ance.

The chairman expressed the opinion that before anything was done with reference to trading or in regard to offices, a committee he appointed to investigate the policy of Boards in the Auckland district and whether they favoured offices in a certain position. The matter was not urgent and a recommendation could be made to the incoming Board. One of the main arguments that had been used was that if a consumer had anything wrong with his gear he wanted to be able to get to the engineer and his workshop as soon as possible. That raised the question whether the

Board was going to run a repair workshop and become a purveyor of supplies. Mr Gunning said he did not want anyone to think lie was advocating trading by the Board. He believed that was better left to private competition. Mr McKay could not see why the matter of trading should be coupled with that of offices. The chairman explained that it was not the policy of the Board to go into the repair and retail business. The chairman urged carefulness. He pointed out that immediately the Board went into new offices its administrative expenses would increase greatly. The new Board should also be given an opportunity of considering the matter. Mr Ross suggested that if they were going to send a committee to other districts it should go immediately or it would be three months before anything could be done. Mr Barber said that after listening to the discussion, it seemed to him that what they had to do was to put their policy on the table first and settle it. Probably they would find they were spending too much on buildings.

Mr Matheson said Mr Barber had exactly stated the position. It was absolutely essential that the Board should declare its policy in the matter of trading. He pointed out that the Board’s district extended practically from Paekakariki to Itongotea. Who were going to their customers from the point of view of retailing? They could only look to the people from this borough and the adjacent district. Was it going to pay the Board to put in a staff and cater for that, with the chance of keen competition coming in. In any case, people would look for showrooms, in the business area, not away in a paddock somewhere. He knew perfectly well that the es-

timate before the Board could be “knocked into a cocked hat” and could show where the Board could be saved 6£ per cent, on £BOO for twenty years. He urged thorough investigation of the 1 ' whole position. The chairman said , the public were not misled in the matter. They were distinctly told that the Board would not be a trader, but only a purveyor of power. Mr Seifert considered they would have to allow 10 per cent, on the

estimate per annum to-cover the interest, sinking fund, maintenance and other charges. In answer to Mr Brown, the engineer said he did not know of any supply authority which went into tho repair business. They could not keep the necessary plant for all classes of repairs, and the probability was that private firms would be able to do the work much cheaper. The Board’s staff would always be ready with advice and assistance—no doubt they would be first on the spot when any trouble arose. The regulations he had drawn up provided for the quality of all supplies and workmanship, and the Board could withdraw the license of anyone who faded to follow the regulations. Mr Ivilsby considered the engineer’s explanation settedi whether they should trade or not. Mr Matheson’s motion, seconded by Mr Gunning, was then put and carried as follows: “That a committee of investigation, consisting of the chairman, Messrs Seifert, Barber and Matlieson be set up to go fully into the whole position of the Board’s policy ini regard to trading, erection of offices, hoardroom and site, also to receive the Levin Borough Council’s proposals in regard to leasing a suite of offices to the Board and to report to next meeting.”