ELECTRICITY CHARGES

Rotorua Morning Post, Volume 1, Issue 34, 2 October 1931, Page 2

ELECTRICITY CHARGES

Efforts have been repeatedly made during the past few inonths to obtain a reduction of the charges made for electricity in Rotorua. In these the member of Parliament for the district, Mr C. H. Clinkard, has co-operated, but so far the only reply obtainable from the Tourist Department, which operates the service, has been to the effect that the matter was "receiving attention." At its meeting on Wednesday the Borough Council had before it a letter received by Mr Clinkard from the Minister in charge of the Department to this effect. As far back as July 14 last Mr Clinkard received a letter from the then Minister, the Hon. P. A. de la Porrelle, stating, inter alia, "The matter of some reduction of the charges for electric energy is at present receiving close consideration." Mr. Clinkard at that time advised us that he had for some time been pressing for a reduction of the charges made by the Department. It is now reasonable to infer that Mr. Clinkard has not ceasecl his efforts on behalf of consumers of electricity in Rotorua, despite their lack of effect; also, that as no definite pronouncement has

yet been made by the Department, some hitherto undisclosed aspect of the probiem is preventing a decision. After some discussion at the council meeting the other night the Mayor said that he knew the Department itself was sympathetic toward reductions, but that he understood it was having clifficulty in convincing the Treasury. Apparently the Department takes up the attitude that financial conditions are not favourable to suggestions which involve a reduction of Government revenue. With this attitude, provided it can be justified, no one can at present reasonably quarrel. In the present case, however, the question is, can it be justified. The business man has long ago learnecl that if he prices his goods above the economic level his saies fall off and his profits shrink, whereas a reduction in prices, especially - when production costs are known to have fallen, leads to increased saies and better profits. This truth, however, seems beyond tlie comprehension of the official mind and it is only when the power to decide is placed in the hands of commercial men, as has been done with the railways, that it is acted upon. That there are no special factors connected with the supply of electricity which make the general truth inapplicable is shown by the aetion of several power boards, which have made reductions in charges in recent months, particularly since the wages "cut" enforced. It may therefore be suggested to the Tourist Minister, himself a business man, that a reduction of the charges levied in Rotorua would increase and not decrease the revenue from the undertaking and that this aspect of the question be given "close consideration."