POWER BOARD RATES

Otago Witness, Issue 4032, 23 June 1931, Page 68

POWER BOARD RATES

A LENGTHY DISCUSSION £9OOO REQUIRED. There was a lengthy discussion at the meeting of the Otago Electric Power Board on Tuesday, when the question of striking the rates for the current year was brought up for consideration. Mr A. E. Russell moved—“ That > the following rates be advertised and struck at a meeting of the board, to be held on July 2:— A general rate over all properties in Otago, Lawrence, Maniototo, and Owaka of ,05d in £1 on the capital value, plus separate rates in the northern area of .6d. in the southern area of anc * in the. Lawrence area of .7d.” Mr Russell said he thought it should be stated that the board had endeavoured .? iFJ Ve - consi deration to the necessity for lightening the burden of rating as much as possible during the current year, which would undoubtedly be a difficult one financially for the rural ratepayer. At the same time it was desirable to point out tn at every avenue of economy in expenditure, consistent with efficiency, having been explored the board had but two means left—electricity sales and rates—to secure the revenue necessary to meet its liabilities. The increase' in electofioty sa es provided for this year wa‘s £Bb3 as against £2385 last year, and, based on this estimate, necessarily conservative in view of the times, an amount of about £9OOO would be required from ~e s - a 1? L . 8 con nection it might be added that the arrangement to postpone the reduction of overdraft until riext year was a benefit to the ratepayers at a time when relief of any sort was much to be desired. If the board were to leave the rates as they were last year as well it might have done, it was felt that it would have been inflicting an undue hardship upon a large number of its ratepayers and penalising some for the shortcomings of others. Admitterly it was taking the risk of an inordinate increase in the amount of unpaid rates and. of a drop in electricity sales below the estimate, but it annealed to its ratepayers to show their appreciation by paying their rates by the due date and so reducing the overdraft.. The separate rate in the northern and southern areas had been reduced by l-sd, which was equivalent to an average reduction on rating of over 20 per cent. It ought to be pointed out, however, that should electricity revenue fall below the conservative figure estimated, the board would have no recourse but to raise the rates again next year. It was, therefore, essential that ratepayers in order to lighten the burden of rating upon should co-operate with the board in increasing the use of electricity. Owing to the fact that the valuation of the Lawrence borough had diminished considerably as a result of the recent valuation, no reduction could be made in respect to the Lawrence area, as even with the same rate as last year, £l6O less than last year would be returned. The diminished valuation of Lawrence borough bad cast a greater burden on the county ratepayers, but the board understood that both the Tuapeka county and the Lawrence borough were now up to date in their valuations. The Owaka area would again bear l-20d general rate, with a rebate of 50 per cent, to those ratepayers who were more than 10 chains from the board’s reticulation lines. Although the Owaka area had shown a loss during the past year, it was thought that the sale of surplus stock, and a gradual increase in the sale of electricity there, that this position would be improved. The general rate would also apply to the Maniototo-Strath Taieri area, the proceeds being appropriated against the initial expense incurred in connection with that scheme. The board’s financial position at the close of the current year would'depend to a large extent on the degree ~in which individual consumers maintained and increased their use of electricity. The motion was seconded by Mr W. Taine. Mr W. B. Galloway opposed the motion and moved as an amendment: “That the special rate for the nothern area be .45d.” He quoted from the report of the experts on the affairs of the board as follows:— “ We suggest that for this and the ensuing year the total amount required be appor" tioned over the rateable districts on the basis of the balances appearing on their accumulated loss accounts at March 31, 1930. On this basis each district is regarded as making a pro rata contribution towards the ultimate extinction of its share of the accumulated losses.” The board had agreed to support the experts’ suggestions, said Mr Galloway. He did not consider that so large a rate as -65 d was fair to the northern area ratepayers. There was no seconder for the amendment. :

Mr Russell said that the Executive Committee had considered the matter,, fully and was of the opinion that the year was an abnormal one and the board was not justified in taking unnecessary risks. Mr H. M. Driver said that the past year had been one of the worst ever experienced bj’ the ratepayers, and he thought that the rates should be kept as low as possible. More money would certainly be required by the board in two years’ time, but the economic position might easily be .much better by then and the ratepayers in a better position to stand an increased rate. Many ratepayers had been unable to pay last year’s rates, and it seemed to be of little use making the position worse for them.

Mr D. Boyd made reference to the position in his own district.—lnch Clutha. He said that the ratepayers there were being hard hit, but he did not see how the board could help them. Valuations had been increased to the extent of £26.000 in this district—an area of about 7000 acres. He advised the ratepayers to make representations to the Land Valuation Department with the object of having the valuation reconsidered, as this was the only apparent means for them to improve their position. Previous valuers had taken into consideration the nature and situation of the country. This would show that not only the northern area was in need of relief, for the '•outhern area was, if anything, in a worse position. The motion, was carried.