HOROWHENUA POWER BOARD

Manawatu Herald, Volume XLIX, Issue 3876, 27 November 1928, Page 3

HOROWHENUA POWER BOARD

NOVEMBER MEETING. . The monthly meeting of the Horowhenua- Power Board was held in Levin last Tuesday, there being present:—Messrs G. A. Monk (chairman), W. E. Barber, T. G. Vincent, R. Bryant, E. S. Morse, C. Blenkliorn, A. J. Petheriek and A. Seifert, Mr. P. Wj Goldsimith (secretary and treasurer), and Mr. J. A. Smith (engineer). TREASURER’S- REPORT. The treasurer reported as follows : Accounts. —There has been paid away since last meeting the sum of £694 13s 7d, wages, salaries, benzine and railway freight on poles forming the largest items. These accounts are now submitted for confirmation. On the pay roll for the day there are some 35 vouchers! totalling £2026 18s sd. Of this sum the chief payment (which includes interest and a portion of principal repayment) amounts to £1356 16s sd. The balance of £670 2s is made up by payments for poles and timber £192, meters, insulators, cable, etc. £2ll, spares and tyres £35, ranges, waterheaters, elements, etc., £62, and many sundries. Receipts. —the receipts for the month amounted to £4906/7/1, towards which amount receipts from electricity sales accounted for £3782 Is sd. Naturally the loss of about £IOOO of revenue from the flaxmills reduces very considerably the takings to date. The following table shows receipts for the month and also for the present financial year so far as it has gone (shillings and pence omitted) : April-

Loan Expenditure. —With the accounts for payment for poles, cable, insulators, meters, etc., together with provision for payment within a few days of five tons of bare copper cable, the loan moneys already raised will be exhausted. Until the Board determines what further extensions are to be made, so that the amount of loan money required can be ascertained, the power fund or revenue account can advance what is necessai'y to carry on in the meantime. When further loan money is raised these advances can be paid back. FINANCIAL ADJUSTMENTS.

The chairman referred to the Board’s having exhausted the loan money raised, amounting to £190,000. He stated that the secretary and himself had been investigating as to whether certain reserves which the Board held, and which they thought the Board should still retain, could be invested in the Board’s business and still be available, if bad times came, to meet payment of accounts, but which would be interest-earning to a greater extent than they were to-day, through being on short deposit in the bank. They were, informed, however, that while the Board might temporarily use its reserves, to be subsequently paid back out of loan, the loan did not allow of investment in the Board’s own business. They were informed thatthey could take up debentures with other local bodies, if necessary. He did not know that that was just exactly what they wanted. What the Board would have to consider was the question of whether they should take sopie steps to invest this money and secure a higher rate of interest than at present while still having the money available if they struck rather difficult times. In the meantime it would be well to use some of that money in reticulation that was going on, and when they saw thp probable amount that would be expended, in twelve months, they could raise a loan to pay it back. They did not know whether they would want £SOOO or £IO,OOO at this moment, but in twelve months the Board would probably know, having expended some of the money, and they could then raise £IO,OOO to repay the amount.

The secretary said there was a rather obscure clause in the Finance Act of 1927 which gave authority to local bodies to use their funds and have them refunded when they raised a loan, provided, of course, that the loan was authorised, as the Board’s loan was. The chairman remarked that the Board still had £70,000 of authorisation, having raised £190,000 out of £260,000 authorised. The report was adopted.

Oct. Oct. £ £ Electricity 3782 23,045 Penalties 28 185 Installation and service lines 923 4080 Interest on installations 51 259 Consumers’ deposits 7 82 Cottage rents, and sundries 114 457 £4906 £28,112