POWER BOARD'S METHODS.

Putaruru Press, Volume VII, Issue 313, 7 November 1929, Page 5

POWER BOARD'S METHODS.

TRADING AND SERVICE. Mr. J. M. Allen’s Criticism. Special Committee’s Report. At the October meeting of the Thames Valley Power Board, Mr. J. M. Allen, one of the Morrinsville members, made a series of charges regarding the business efficiency of the board. After a lengthy discussion a special committee was set up to investigate the charges and to report to the next meeting %f the board. The report was before the board on Tuesday. A letter was also received from the Morrinsville branch of the New Zealand Farmers’ Union conveying to the board its sincere endorsement of Mr. Allen’s remarks. “You will appreciate our members are vitally interested in the success of your operations, and this should serve to help you in effecting any improvements you should consider necessary,” wrote the secretary. The text of the report was as follows : “ There were two occasions when the clerk-m-charge at Morrinsville was unable to give the information required, viz.: Supply to a quarry, and special off peak loading. In the first case the clerk notified Te Aroha of this enquiry for supply, and ’ Mr. Lindsay personally waited upon the owners of the plant and gave them all information with regard to hours and rates. They were to advise the board as to their intention but have not yet done so. With regard to the off-peak loading, the consumer called at the depot and asked for the prices of industrial supply, and upon the standard rates being given he considered them too high for the purposes required and informed the depot clerk that! he would personally get in touch with Te Aroha. The manager and assistant engineer have since supplied the information, which could not have been done other than by executive officers. “ In an institution of this board’d/ magnitude and operations, it is most , essential that the control should be centralised, and instances of this are forthcoming daily. Each depot is provided with a high tension telephone and communication with head office is a matter of seconds only. The necessity for using this on any any and every occasion has been impressed upon the depot officials since its installation. The matter of special supply cannot ge granted by a depot official, but they are directed to obtain all the requirements from head office, and a personal visit is made in every case by an executive officer and a special agreement and contract signed up. This is being carried out.

“It is most necessary that head office should directly control the supply and installations, the main reason being to ensure that the financial standing is sound, and further that the conditions of the Power Boards Act with regard to the installations are in order. When it is realised that not more than two years ago the amount outstanding in the financing of consumers’ accounts totalled nearly £50.000, and at present only £20,000 (the board’s sales being in the vicinity of £20,000 per annum) the tightening up of this method alone has resulted in a nett saving of over £IOOO per annum in charges. The trading department has been most helpful in placing the board’s financial position on such a sound footing. The policy of the board is not to compete with electrical traders to the extent of driving them out of business, but to assist the consumers in the financing of their installations and also to protect them in the charges for installations, and, further, that ratepayers and consumers residing at a great distance from centres obtain the same price and treatment as those in or near the main centres. Each official of the board is provided with a schedule of installation charges, which are amended periodically, and can supply all information with the exception of special installation and supply contracts.

“ The matter of encouraging the use of electricity and advertising has also been considered by the board from time to time. Various schemes have been outlined by the executive, but have not been carried into effect owing to the time not yet being opportune. The main reasons are the possibility of a limited supply from the Public Works Department owing to generating conditions; the unrestricted and continuous use of the heating and lighting flat rate points, the use of appliances on the heating point, on the present charges being most unprofitable to the board, especially with regards to the 1200 watt supply; the present changing

over from fiat rate to meters; the Power Boards’ Association have had under consideration for some years a large publicity programme, but owing to the supply ‘from the department being limited, it has been considered that the time is not yet opportune. When an unlimited supply from the department is assured, and the installing of meters complete, the board can then, with advantage, encourage the uses of electricity as far as their finances will allow.

“ In the case of every special supply (which in every instance being a large consumer or controlled by time switches) visits are made by the board’s officials every fourteen days, in order to check the functioning of the time switches and special appliances of the board.

“ Regarding the letter the manager communicated with Mr. Allan asking for the date of the letter and contents for which he stated no reply was received. The date of the letter was July or August, 1927. No record, whatever, can be traced of a letter being received, but all his correspondence can be accounted for, with the exception of this letter, from 1925 to date. There is correspondence in September, 1927, and also information of personal visits by the staff, but in no instances was any mention of a non-reply made by Mr. Allan. Even where distribution engineers are stationed, viz., Matamata and Paeroa, occasion often arises where information has to be obtained from head office, whereas at Morrinsville only a clerk is in charge and any \information of a technical or other than routine nature is supplied by officials at head office by request.

“ The present position of the board is wholly due to careful administration. The one matter of changing over to meters was fully discussed and considered for two years before finality was reached. “ With regard to free servicing of consumers, the present servicing operated by troublemen now costs the board in the vicinity of £7OOO per annum, which service is unequalled in New Zealand. It it was decided to give free servicing to all consumers this would greatly add to the overhead costs. The board has given, and continues to give, service to all consumers at their request, and the same has been considered from time to time.

“ The position summarised is as follows: The present method of control by head office is most necessary both in the interests of the board and consumers. The time is not yet opportune for launching a vigorous policy encouraging the use of electricity, owing to the possibility of a limitation in the bulk supply, the loss to the board on electrical appliances used by fiat rate users, and the changing over from flat rate to meters, which in itself is a big policy measure, and results will have to be awaited. The "board’s policy with regard to trading methods would require amending in order to enter into more active competition to the detriment of private traders. It must be recollected that the profits from the board’s trading department have been the means of balancing the general account annually and also creating necessary reserves. Further, the returns as in the past would not be maintained.

“ The board’s policy in the past has been to keep the administration and maintenance costs down to a minimum, which has been done, and a perusal of the balance-sheet shows that any undue increase at present in these costs would be to the board’s detriment.”

The chairman said the report covered all the points raised by Mr. Allen. The board was indebted to Mr. Allen for his comments, as it had enabled it to bring before the members and the public its policy and its inner working. The board in no way wished to stifle criticism, but before such criticism could be discussed to some purpose it was necessary to have facts to go on. Those facts were contained in the report. Mr. Allen thanked the committee for the exhaustive report brought down. Unfortunately it had been handed to him only prior to the commencement of the meeting, and he had not had an opportunity of studying it in detail. It was not in any hypercritical spirit that he had brought these matters before the board, but he considered his attitude had served a purpose if his comments had been considered of any value. If as a result the consumers were going to get better service from officials, in the various branches they would not have been wasted. Regarding the letter, he should not have said that no reply had been received. He had not done this with the object of criticising the office staff, but to bring out the fact that the branch offices should attend to the business in letters addressed to them and, if necessary, ring head

office themselves, not ask the inquirer to do so. Mr. Strange: The matter was well worthy of consideration. It is the duty of members to bring before the board matters of interest to consumers. Mr. Corbett suggested that a copy of the report be furnished to each member and that discussion be deferred until next meeting. Mr. Flatt said Mr. Allen had made a series of charges against the board. Apparently he had the support of a number of farmers in Morrinsville who had upheld his attitude. A report had been made on the charges and Mr. Allen had not yet had a chance to go into it. He should study the report carefully and say whether his charges were correct or whether he had made a mistake. If Mr. Allen wanted time, and the people of Morrinsville and Matamata wanted time to consider the report it should be allowed, and he for one would be willing to defer consideration for a month. Mr. Pohlen moved that discussion be held over for a month. Mr. Flatt: You might add “In order to give Mr. Allen an opportunity of substantiating his charges.” The chairman: I think that is a bit drastic. Mr. Flatt: Then “In order to verify the statements made by him.” The motion with this addition was passed, and it was decided to advise the Morrinsville branch of the Farmers’ Union that the matter was under consideration. A suggestion that a copy of the report be sent to the branch was not favourably received, it being considered that the matter should be fully discussed before a report was issued.