ELECTRICITY AND THE DAIRYING INDUSTRY.

Manawatu Herald, Volume XLVIII, Issue 3039, 22 May 1926, Page 3

ELECTRICITY AND THE DAIRYING INDUSTRY.

REDUCED- CHARGES' ASKED FOR. A deputation representing the dairy factories and dairy farmers in the Horowhenua Power Board’s district waited upon the Board at its last meeting with a request for a reduction in power cliages. Unfortunately the deputation were not able to give definite reasons for what they were asking. One speaker in reply to the chairman said “they did not want to enter into a battle of figures.” Another member of the deputation said “the farmers did not know one iota about K.V.Ai charges and other technicalities, but they understood the Board was selling power cheaper to one client than another.” This led the chairman to ask that it might clear the air “if you tell us exactly what you mean.” The deanswered “that the flaxmillers were getting their current at lower rates than the dairy factories.” Another member of the deputation said the Board had been running for 12 months and should now be in a position to know what reduction they could make. Mr. G. A. Monk, Board chairman, said that the Board was pleased to be able to discuss the position with repeseutatives of the various factories. In the first place, he did not wish them to go away with the idea that the Board easily found, a solution for all these difficulties, but it was a satisfied clientele that they were after. In addition to satisfied customers, the Board had to see that the two ends met so far as the finance was concerned. Referring to the rates of dairy factories and those of the dairymen, the speaker considered these should be taken separately. What the Board would have liked was knowing on what the deputation based its ideas on. The Board had figures on which they based their ideas. When the report of the proposed charges came down, he thought the deputation would find that the Board had dealt fairly with the dairy industry consistent with the safety of the Board’s affairs. THE FACTORY CHARGES. In dealing with the question of factory charges the Board had to consider that last year the revenue from them was only £ISOO. Then there was the factor of the peak load, which seemed to worry them. They knew that the factories created a peak in April, which they could not maintain in June, but the Board had to pay on the April peak for the power. Possibly, there was something in the argument that a re-arrangement in the Board’s internal working would enable it to give the dairy industry a reduction, but if that were so, why so them any more than any other consumer? FLAXMILLS. Mention had been made of ilaxmills, but practically every one of these had a special contract, under special conditions. The very large mills had a better rate than the oneslripper .mill, but he would point out that a llaxmill started at 7 o’clock in the morning and left off, perhaps at 5 o’clock at night, running on the same peak and running all the time. The dairy factories, however, created their peak intermittently, and they did not take an average load for all these hours. NO REASON WHY. Mr. Matheson, a member of the Board, said he was surprised that anyone should come to them for a reduction, but without producing some evidence why the reduction should be carried out. As a member of the committee which handled the matter, however, the speaker said they had given it a good deal of thought, and were prepared to make certain recommendations that such reduction should take place. The reductions to be placed before the Board were going to cost it a sum of money which, at this particular stage of its career, it seemed very doubtful whether the Board could stand. Mr. Matheson stated, in regard to the comparison between oil engines, and electric motors, the Board had never yet been able to obtain from a single farmer the cost of running his oil engine, , and they had never yet found a farmer who had kept a record of such cost.

The chairman said he hoped the deputation hadn’t got it into their heads that the Board had made a profit. That was not so. The reductions being made were quite problematical ones, as the Board expected to derive an increased revenue during the coming year, otherwise the reduction would not have been forthcoming. To say that the Board had made a profit on the purchase and sale of electricity was wrong, and he did not think any other Power Board had been able to do any more than the ITorowhenua Power Board was doing. There was just one other thing he would like to mention, and that was in connection with the people who canvassed the district when the Board first started. The chairman said he had stumped the country, and he would defy anybody to say. that he encouraged people to think that the power would be cheaper. Mr: Overton had said how much better it was going to be, but not how cheaper. On the whole the very small man and the very big man were going to have the most benefit, especially the man with from one to thirty cows, but the man with from 30 to GO cows was not going to be much better off, under the new arrangement.

LOWJER CHARGES FOR MILKING MOTORS. The Finance Committee reported as follows: — 1. —The revision of the rates to dairy factories of the District occupied a considerable time. It was was found that there was a considerable difference in the cost of power to factories of practically the same size and capacity.

2. —Milking-plant Rates. After going into this question with careful consideration and analysis, it was decided that the Board should be asked to abandon the present method of charging a horse-power rate plus units, for a method of charging for units used only. In the Hush of the season the rates hereunder submitted for adoption would produce practically the same amount as our present rates. Taken however over the whole year there would be a reduction in the favour of the consumers of at least 10 per cent.

The Committee therefore recommends that the charges for milking plant motors be as follows: —

Per unit net. First 100 units per month 4Ad Second 100 units per month 3d All over 200 units per month 2d Minimum charges to be: Up to 1 h.p., 5s per month; up to 1 % h.p., 7s (id per month; up to 2 h.p., 10s per month. Maximum size for milking motors (except by special arrangement). —2 h.p. (50 degrees rating). Maximum size for separating motors. —1 h.p. (50 degrees rating)-

The chairman moved the adoption of the report, which had been thrashed out in committee very fully and had been further thrashed out that day. It meant a reduction for the 1 h.p. man who had been complaining very bitterly. POWER COMPARED WITH OIL. Mr. Vincent said there was a general reluctance on the part of farmers to put in motors. The speaker had asked Mr. Overton how much it was going to cost and he said about 10s per cow. The cost was nearer 15s per cow.

The chairman said the hot water service and every thing else was being included then. The cost for running the plant was more like 10s per cow. They were getting a revenue of £SOOO a year from the dairy people and to give them £IOOO back was more than the finances of flie Board could stand. There was another aspect to be considered. They had had strong arguments for the abolition of the meter rent, in which the dairy farmers would share| AVhat could they say to the meter-users if they turned round and gave the dairy people a 20 per cent concession. It did seem extraordinary that with a line going past his door, the farmer Mr. Vincent referred to, put in an engine. Perhaps lie had the engine given to him. Mr. Vincent: Can you not come into line with Manawatu-Oroua. The chairman said their’s was essentially a dairying loan and they were differently situated. The Manawatu Board was in trouble itself because their neighbours, Rangilikei, which had a large town load for tramways, etc., could give a lower rate still. Dairying did not affect their peak load.

The Treasurer said the Manawatu rates were: 100 units 5Ad, 100 units 4d, and the balance l:‘d with Id a unit discount. The Horowhenua minimum charge, however, was lower.

Mr. C. Kilsby (Otaki) said he sympathised with the dairy farmers, but before they could see their way to reduce the charges, they must see where they were going to pick up revenue. As soon as they made a reduction other consumers would want reductions and the Board might. find itself in difficulties. They should remember that it would be impossible to get the rates up again when once they were reduced. He considered that the 10 per cent, reduction being given would be a loss to the Board. Why not make it 5 per cent, now and the rest later on.

Mr. W. IT. Gunning (Shannon) said the meter rent should have some consideration when the Board was making concessions. The concessions proposed were ample for the present, and he did not think they would add a single farmer t<? the mains.

Mr. D. W. Matheson said so far as the Board was concerned there had only been one pledge as to reductions and that was to the dairy industry. As a member of the Finance Committee he did not feel quite certain that the Board’s finances could stand the reduction proposed. The Treasurer said lie took it that the change in method of charging by the abolition ot the horse-power charge would remove a great deal of dissatisfaction as the dairy farmers would only have a. unit charge and would he aide to reckon up their own charges. Mr. Ross thought the Board ought to risk the reduction because they anticipated further revenue, hut they could not possibly consider any further reductions. The only other way they could make them was h.v reducing expenditure. If they could do that they could pass it (in to the consumer.

Mr. Vincent said the estimates showed that they expected to pay the Government an extra £4OOO for power, but only expected to get £2OOO more for it in revenue. The estimates must be elastic, if that was so. The Chairman: Estimates are always elastic. Tt is alright so long as they are elastic on the right side. Mr. W. E. Barber thought the small people would be satisfied with

what was proposed. The bigger milkers were very well satisfied not only with the power, but with the convenience and the water heaters. This ended the discussion and the milking motor rates as recommended were then adopted. The dairy factory charges were referred, on the chairman’s motion, to a sub-committee consisting of Messrs Monk, Matheson and Vincent, with the Treasurer and Engineer to consider. Mr. Ross said he hoped the Committee would go into what it cost the dairy companies before they installed power. He was quite prepared to bring figures to show that the llaxmillers were not receiving cheaper power since they installed electricity. The chairman said he had that in mind when lie asked the deputation for figures. He could make the statement that the llaxmillers who scrapped suction gas plants for the power had not got cheaper power. They certainly had the convenience. They expected to pay for making the change in five years. Mr. Ross: They will not do it in ten years.

The Chairman: You are right in asking that the dairy, companies produce figures to show that it is costing them more. Wthat is worrying me is the difference in the internal' working of the factories.

Mr. Vincent said the committee could go into these figures.