HOROWHENUA ELECTRIC POWER BOARD.

Manawatu Herald, Volume XLV, Issue 2636, 22 September 1923, Page 3

HOROWHENUA ELECTRIC POWER BOARD.

FINANCING CONSUMERS.

At Tuesday’s meeting of the Horowhenua Power Board, the question of the charge of interest on moneys advanced by the'Board to consumers for the purpose of installing electric power, was dealt with at length, as the result of a recommendation embodied in the engineer’s report, as follows: “In connection with the grouping system, I would advise a resolution of the Board to the effect that interest on moneys advanced to consumers for installations be not collected until the date of switching on of, electricity takes place.” —Some members argued that such concession would not be fair to those who had made their installations independent of the Board and to whom the Board should pay interest at 6 per cent, on the capital outlay until the current was connected.

The chairman said in such eases the best thing to do would be, not to put in installations themselves, but to take advantage of the Board’s scheme of financial assistance. They could get 7 per cent, of the cost of the installation, and as it was not proposed to collect interest on this until current was available, they could have the use of the money until that time, and then repay the amount before the charge was made. They would have to pay 25 per cent, of the cost under this scheme, and the Board would then carry out the work.

1 Mr A. Ross said the position was that if a consumer put in an installation he would have this amount lying unproductive until current was available.

The chairman said in some parts of the district electricity would not be available for some time, and under a system of.‘ granting rebates those who were getting current would have to pay for this. He considered that the Board’s financial proposals would cover the difficulty. The Board had gone into these matters when the district was being formed and had decided to borrow extra money to finance consumers. At that time there was no question of allowing interest to stand over, and it was on this principle that the loan had been carried. He considered the Board’s proposals very generous and the people who did not think so, did not want electricity.

Mr Gunning said that the position was that those who accepted the Board’s financial assistance got the use of the money for several mouths free of interest, whilst the man who paid out of his own pocket got nothing.

The chairman: Let him take our offer.

Mr Gunning: Then the people who have put their names down as putting in their’ own installations will change over.

The chairman: That will be all right; we are prepared for that. Mr Gunning contended that it was right-to assist one section of the community and not the other. Either they should assist the cash man or neither.

The chairman pointed out that the Board had borrowed money for this purpose, aud as the loan had to be lifted, at so much per month, they would gain nothing by doing as was suggested. He did not think however, that there would be any difficulty on this head. The group system was so much cheaper than private installation, that most people would prefer to get their wiring done under this scheme. He pointed out that the present idea was that interest was chargeable from the time of installation, but it was hardly likely that everybody in the district would join up—probably not mox-e than 50 per cent, would at first —but he did not think that they would lose many through not giving the concession asked for.

The Engineer’s report was adopted.