FIXED DISCOUNT DAY.

Putaruru Press, Volume VIII, Issue 364, 13 November 1930, Page 5

FIXED DISCOUNT DAY.

NOT PRACTICABLE. Thames Valley Board’s View. The Thames Valley Power Board decided at Tuesday’s meeting that it was impracticable to alter the discount day to the 24th of each month in place of 14 days from the reading of the meter as at present. At the October meeting several members suggested that a reversion to a fixed discount day would be a convenience to businessmen, who were accustomed to pay accounts on the 20th of the month, and to farmers, who received dairy company cheques on the 20th of each month. The finance committee was asked to go into the matter with the manager to see if a fixed discount date could be adopted without detriment to the work of the board’s clerical staff. The committee’s recommendation that a reversion to a fixed discount date was not advisable was adopted by the board.

In a report the manager explained that to alter the discount date to the 24th would mean further reorganisation of office staff and meter readers, between the 19th and the 24th of each month there would be a continuous queue of persons waiting at the counters ,of the offices to pay their accounts. The cashiers would have to work into the night to cope with payments received by mail. To give a set discount day would mean a dividing line in the date of meter readings, so that accounts for meters read up to a certain date, say the 19th instant, would be payable on the 24th of the same month, while accounts for meters read after the 19th would be payable on the 24th of the next month, giving an unfair advantage to the person whose meter was read after the 19th. This would ultimately cause greater discontent than the present system, because the man whose meter was read on the 19th of the month would have only five days’ grace, whereas the man whose meter was read on the 20th would have 35 days for payment. Everybody would be clamouring for readings after the 19th. The slow payer under this system could get longer credit at times, whereas the, 14 days for payment gives the office staff better facilities for following up doubtful consumers. Summarised, the main objections to a fixed discount day were : (1) Uneconomical functioning of staff, and additional staff required ; (2) consumers’ accounts are at present under better control ; (3) that as the system now in operation has not had a fair trial a change is too premature ; (4) that any additional administrative charges during the present year are not advisable, owing to the reduction in revenue from consumers now on meters ; (5) that the daily returns would be most irregular.