POWER BOARD’S YEAR.

Manawatu Herald, Volume XLVIII, Issue 3028, 27 April 1926, Page 3

POWER BOARD’S YEAR.

PROJECT ALREADY PAYABLE.

A SOUND CREDIT BALANCE

Seldom in the history of local government in the Dominion has such a splendid achievement been recorded as that standing to the credit of the Horowhenua Electric Power Board ('says the Levin Chronicle). The results of the first year’s operations under a reasonable consumption of current were put before last week’s meeting at Levin in statements by the treasurer (Mr. P. W. Goldsmith) and comments thereon by the chairman (Mi’. G. A. Monk). These will be found reported at length in a series of articles this week, and will be perused with interest and satisfaction by our readers. The salient points revealed are: — (1) The net profit for the year is £10,383, which with the balance from last year of £2,398, brings the total credit to £12,781.

It is to be remembered however that by reason of the statutory powers given to the Board and the approval of the Minister for Internal Affairs, two years’ interest and sinking fund has been paid out of loan money, which next year must be paid out of revenue. Had it been necessary to pay the interest out of revenue this year, the profit would have been reduced by £9OOO. While careful management will be conceded as a remarkable financial sucess that in its first year of operation the Horowhenua Board should be able to show anything to credit at all. (2) Within ten months the Board took up the full allotment of current that the Public Works Department estimated —when the Mangahao scheme was inaugurated —would be sufficient at the end of the fifth year. On April 15th of this year, there were 2219 consumers connected up. It was' originally 'estimato(d that after five years’ operations the Board would have round about 2000 consumers. The industrial motors in use already total 153, the milking motors 235, the heating and ironing points 2030, there are 154 ranges and 301 water heaters. (3) It can now be stated definitely that there will be no need to collect a rate to finance this power scheme. The two largest Power Boards in the Dominion have both found it necessary to strike heavy rates over their districts to supplement their revenue. The Southland Power Board last year collected £60,000 by way of rate levied on the unimproved value of all the land in its district, whether the power is available to it or not, the rate in the power is available to it or not, the rate in the £1 being I.RI. The Thames Power Board has also struck a substantial rate throughout its large district, creating much indignation, especially amongst non-users of power. (4) The Board is to consider giving such concessions as the past year’s prospects warrant. The uggestions are that the dairy industry should receive the first rebates possible, while the meter rent, to which many consumers object, is also to be considered that, by encouraging the greater use of the power by the dairying industry, this load can be so built up that the meter rent could very soon be dispensed with, it being primarily a revenue-producing levy. Where exactly the cut will be made is to be decided by the Board at its May meeting. From this outline of the position it will be seen that the Horowhenua Power Board is in an eminently sound position and the district can be pardonably proud of the efficient organisation and prudent administration on the part of the engineering and secretarial staffs and the Board itself that, has been responsible for so splendid a success.