Manawatu Herald THURSDAY. JANUARY 11, 1924. GAS AND ELECTRICITY.

Manawatu Herald, Volume XLVI, Issue 2689, 31 January 1924, Page 2

Manawatu Herald THURSDAY. JANUARY 11, 1924. GAS AND ELECTRICITY.

THE ratepayers of Fn.xton are in rather a peculiar position in re gat'd to the TTorowhenua Power Board’s supply of light and power within the borough for the reason that should the Board's income not l)e sufficient to meet expenditure, Foxton, together with other centres, throughout the Board’s area, will ho rated to make good the deficiency. It is hoped, however, that the Board will not be called upon to.strike and call up a rate. Then, again, local ratepayers must make up any deficiency from the 'rates that may occur in connection with the Municipal gas works. The dual position, will require careful handling by the Council, until things,arc finally adjusted. The Southland Power Board has just issued the following circular to the ratepayers within its area, which was read at the last meeting of the Horowhenua Power Board. —“The annual expenditure can be met in two ways. By the sale of a comparatively small quantity of current at a high price per unit, plus the certainty of a very high rate; or by the sale of a large quantity of current at a small price per unit; with the possibility of a low rate. The Board therefore, would impress upon the ratepayers the fact which must be plain to everyone, that in his own interests, apart altogether from the patriotic aspect of the success of the scheme, it is better for a ratepayer to purchase and make use of a large quantity of power at a cheap price than to purchase a small quantity at a high price, and to pay a heavy rate upon his property for which he gets nothing at all. Legislation was enacted during last session of Parliament- whereby, for the purpose of increasing its income, a Power Board is authorised to levy a rate upon all rateable properties within its district and to collect such rate from the properties to which the electricity has been made available. Tf such rate is struck the minimum amount that can be col looted in respect of the. smallest holding is £l, while in respect of the largest property, tin* maximum is £3O, and every ratepayer upon whom such a levy is made under such new legislation will be entitled to receive without additional payment a supply of electricity at current prices equal to the amount of the levy. The Board has decided to exercise its powers under the above legislation and to strike a rate of a penny in the £1 on the unimproved value of the rateable properties to which power will be made available within the district already denoted. This rate will give the Board a revenue of approximately £50,01)1), and should all the ratepayers exercise their rights, the Board will he called upon to supply to them free of charge electricity to the value of £50,000. These figures apply to the Country Districts only. The towns and industries are estimated to give the Board further revenue for eleetrjeity to the extent oT £85,1)00, or approximately half of (he revenue re quired to meet (lie annual expenditure. The other half must be made up by the sale of electricity to consumers in excess of the amount of the rate levied, and until such “excess” sales are sufficient to make the revenue meet the expenditure the deficiency must he made up by a further rate. Th rate of one penny in the £1 on (lie unimproved value for income purposes, end which (lie Board, as slated, has decided to levy, has the merit that every property to which power is made available will contribute a share of the needful revenue whether or not the owner makes use of the power.