HOROWHENUA ELECTRIC POWER BOARD.

Manawatu Herald, Volume XLVIII, Issue 3514, 22 July 1926, Page 2

HOROWHENUA ELECTRIC POWER BOARD.

INCREASE OF SALARIES DEFERRED. MR. ROSS PUTS ON THE BRAKE. At Monday’s meeting of the Horowhenua Electric Power Board, the Finance Committee recommended increases in the salaries of the executive officers of the engineering and clerical staffs. The chairman (Mr. Monk) said the Committee had carefully gone into the matter and had before it the figures of other Boards. The Hutt Board, which was very similar to Horowhenua, was paying considerably more than this Board. Mr. A. Ross (Foxton) tabled a motion to the effect that owing- to the estimated small increase of revenue within the next 12 months, and in view of the necessity for economy as disclosed by the balancesheet, the Board regretted it could not see its way to increase salaries, but will review the position at the end of six months Mr. Gunning seconded the motion. In speaking to the motion, Mr. Ross said the Board would have to be very careful during the next 12 months, and the position, as disclosed by the estimated revenue, did not warrant increases. The business likely to accrue was not going to increase the duties of the staff. Construction was practically complete, the Board was largely a supply board and the duties must, therefore, have eased off considei’ably. According to the estimates the expected revenue was £27,000, out of which £13,000 would he paid for electricity and £10,040 for salaries and general expenses, leaving a balance of only £4500, which was only 24 per cent, on the capital for this year. Of course the Board had made provision out of loan for interest ond sinking fund, but that was not working on proper business lines. They must save every penny they could and he would like the staff to be impressed with the need for every economv for the next 12 months. If:

they got over that without striking a rate they would do well. The estimated increase in revenue was only £OOO, but they proposed to increase salaries by £lO9, which was 18 per cent, of the revenue.

Mr. T. G. Vincent said it was necessary to go back further and find out whether the salaries, apart from the mechnicians, were not. too high,-and whether the general office staff was drawing salaries far in excess of those drawn by men-in Wellington, employed by large commercial houses. He knew an accountant in Wellington whose firm was turning over five times as much business as the Horowhenua Power Board and vet the salary was not as high as that paid by the Board. The Chairman: That doesn’t mean to -sav he is getting paid, though. Mr. 0. Ivilsby said he was quite in agreement with Mr. Ross, as tire Board must look before it leapt. They could go on for another twelve months as they were. Mr Gunning also thought the suggested increases were premature. The salaries were fairly adequate as compared with the Hutt and commercial houses.

Mr. Ross said he was not going on those lines at all, but because the Board could not afford it. By in-creasing-the salaries the Board would not be increasing the revenue. If the Board could see positive results the speaker would be in favour of the increases, but he did not

feel that this would be so, and he hoped that the officers, too, would realise the position. He would be one of the first to move an increase when the revenue warranted'it.

The chairman said that, in making the recommendation, the Finance Committee was carrying out the instruction of the Board to review the salaries. The question of revenue was a most important one, lint estimates could not be taken as an absolutely infallible criterion of the revenue of the Board. It was - pointed out previously that they were framed on very safe lines, and, possibly, if nothing untoward happened this year —no slumps, etc. —the receipts would approach nearer the mark than was estimated in the provisional figures. Taking.revenue wholely and solely, the matter was not being tested on an equitable basis. Cost of work had to be considered and not increases of revenue. In his opinion the Board did a foolish thing at its inception in appointing an officer of another local body to do t'he work. It was realised that the work would be in arrears as a result of that, but not to the extent, to which it actually went. The accountant had to start from the beginning and his work had boon (he subject of congratulation by' the audit officer. It was, particularly in recognition of that good work done, as well as that of the secretary and engineer, that the Finance committee made the recommendations. It was small, but i! was in recognition of good work done. The question as to whether. they could or could not stand it, had been fully eon-" sidered and the committee thought it practicable. Of course, the committee must bow to the will of the Board, but the former felt that as it had a good staff perhaps some re-, cognition was due. Mr. Ross’s motion to defer the matter for six months was then earr’ed. ,