POWER BOARD FINANCES.

Manawatu Herald, Volume XLVI, Issue 2827, 23 December 1924, Page 3

POWER BOARD FINANCES.

METERS TO Bfi READ AFTER HOLIDAYS. At last week’s meeting of the Horowhenua Power Board, the treasurer, Mr P. W. Goldsmith, reported as follows: — It will be remembered that at the last meeting of the Board, the Commissioner made a definite offer of the new loan of £40,000 upon the same terms as the previous one, viz. the loan to be repayable by 73 halfyearly payments of £1,256 16/5 v each. In the first payment of this amount the sum of £1,200 represents interest at 6 per cent., the balance of £156 16/5 representing the half-yearly repayment of principal. It was further stated that the Board would have to pay a holding fee of about £IOO, and that the first instalment of £5,000 would be paid in March. It will also be remembered that at the last meeting the Board authorised a bank oyerdraft. Owing to large financial demands for carrying out the various wiring groups contracts, and to the fact that repayments were as yet not great, also having to meet in December, interest due in Sydney, this was deemed necessary so that any demands in excess of loan money available could be temporarily met. Arrangements were accordingly made with our bankers for an overdraft up to £3,000 if the money was needed. Owing to the proposed holding fee of £IOO being a new charge to the Board and one which required some explanation,*T wrote to the Commissioner in reference to the matter and suggested that if this fee was imposed because the Board did not take up the money early enough arrangements could be made whereby a portion of it could be taken up say two months earlier. The reply of ' the Commissioner was that it would suit the Department if the Board could take up half of the loan, £20,000 in December and the balance by instalments whenever desired. After going into the whole position very carefully and after consulting with the chairman, I wrote to the Commissioner that the Board would accept £IO,OOO of the loan in December, and the balance as previously arranged. This arrangbment- means, of course, that we have to pay interest on the amount earlier than’ was originally intended, but against that the Board saves the hoi fling fee of £IOO, which will not

now be charged, and the Board will also save the interest on any overdraft we might have had to pay do the Bank, through our loan monies not coming to hand fast enough to meet our engagements, for, of course, with the loan money available, under this arrangement, no overdraft will be necessary. I now place before the Board a statement prepareddn order to show tinaneial engagements and requirements as from the 24th November, 1924, to the 31st March, 1925. Contracts entered into amount to £19,000 and although a good deal of this will eventually be refunded to the Board, yet it will in the meantime have to be provided for. Since last meeting we have received £lOlO 0/11 for installations —makng a total to date for deposits- and installations of £5,612 8/8. Since June, accounts for installations have been sent out totalling £5,156 4/2. Meter reading will be done immediately after the holidays. I propose to arrange for Otaki and Foxton consumers who do not pay the meter reader, to have an opportunity to pay their accounts for current iD their respective towns, and if possible, to. get the Borough Councils of Foxton and Otaki to undertake this duty for the Board.