A LOAN OF £260,000.

Shannon News, 20 June 1922, Page 3

A LOAN OF £260,000.

HOROWHENUA POWER BOARD’S GREAT ENTERPRISE.

POLL TO BE TAKEN IMMEDIATELY

ENGINEER'S ESTIMATE OF BOARD’S REQUIREMENTS.

At its meeting at Levin this morning, the Horowneuiua Electric Power Board made important decisions in regard to .the carrying out of its tunctions. Details of the business transacted are as follows: —

The Engineer,- Mr T. R. Overton, M.1.E.E., submitted his first report, which was as ioliows:— A LARGE UNDERTAKING.

“In ‘company with the chairman and members of the Board, I have examined the morei important routes of transmission and distribution lines in the county and boroughs comprising the Board’s district, and generally speaking, I am of opinion that the area is well situated lor the distribution of * electrical energy on account ol being, as it Is, richly endowed .with town and country population.

“The -load on the electrical system will be built up between centres, chiefly from dairy and flaxmilling industries, whilst various industrial concerns and dwellings requiring power and lighting installations will be connected in the towns.

“In order to bring the ever-increas-ing demand for electric power and light within the reach of these mills, farms, factor.es and dwellings, very heavy responsibilities in matters ,ol finance, organisation of staff and engineering is entrusted with the Board, but I have no doubt that each member will recognise, to the full measure, these responsibilities, and for my part, I realise Jrom experience that the ultimate success of such a large undertaking will rest on the amount of economy and efficiency exercised therein, from commencement to. completion. THE LOAN PROPOSAL.

“As instructed by the Board at its last meeting I have made an estimate of the amount of loan money required, the same being set forth in the accompanying schedule. “From these figures you will 'Observe that the total sum is approximately £269,000, which could be uplifted, say, at the rate of not more than £75,000 peir annum, for a period of three years. “Whilst I am confident of having made adequate provision covering the cost of the job anti probable extensions thereto, it is difficult to say how much should bet uplifted during the third year of operation, as requirements will depend upon the amount absorbed of the allocations for service lines, and loans to assist consumers in thei cost of their installations, which is rather a doubtful quantity. “After careful consideration I would recommend that authority be sought, from the ratepayers to raise a loan of £260 ; 000, and in asking for this, consent at the poll, it can be made! clear that pnly actual requirements will be uplifted to complete the scheme.

SCHEDULE OF ESTIMATED LOAN

REQUIRED

Extra high, high and low tentension lines 140,009 Transformers and sub-station equipment 15,000 Street light, fittings, etc '. ’ 5,000 Instruments and tools 1,000 Transport and pole-carting equipment 3,500 Alteration to existing telegraph lines 3,750 Land, buildings arid employees’ residences ....- 7,000 Allocation for consumers’ service lines .'.... 10,000 Allocation for financial assistance to consumers ... 20,000 Preliminary expenses and office equipment 1,750 Contingencies 10,000 , £217,000 Interest at 6 per cent and sinking fund of 1 per cent during first year of each portion of loan £15,000, interest and sinking fund on same £IOSO 10,050' Interest on, say, £150,000-dur-ing second year *£10,500, interest and sinking fund on same £735 11,235 Cost of raising loan outside N.Z. at 5 per cent 12,125 £256,410 GENERAL. “Questions of policy, staff organisation and details of engineering will be dealt with at a later date. “Before concluding, I would like to express my thanks for the very able assistance rendered by the chairman •and members of the Board, the County Engineer, Mr Anderson, and Mr Goldsmith, while going through the district in order to obtain the infor-

mation necessary for this report. The Engineer added the following note:—

“This estimate of £260,000 has been liberally made up, as it is prudent to obtain ample authority from the; ratepayers in order to avoid repeating loan polls, which has been the expensive experience of many Electric Power Boards in New Zealand.” The report was considered in committee, and after a brief discussion the following motion was passed on the motion of the chairman, seconded by Mr Matheson: “That the Engineer’s report be adopted, and that the necessary steps be taken to take a poll of the ratepayers for authority to raise £260,000 by way of loan.”

it was decided, on the motion of Messrs. Seifert and Matheson, “That the term of the loan be not more than 33 year, nor less than 20 years, with a sinking fund of one per cent.”

BOARD AGAINST A JOINT LOAN. The Manawatu-Oroua Board wrote stating that, from the. reported remarks at the last meeting of the Horowhenua Board, the letter of the formed Board had been misinterpreted, as it. made no suggestion that it should control and arrange the proposed joint loan, but it was anxious to know definitely whether the various Boards still desired to unite in raising the consolidated Joan. A further letter stated the Mana-watu-Oroua Board was now prepared to raise its loan. If the Horowhenua Board still intended to combine in a joint loan, it should forward its estimate within fourteen days, otherwise the Manawatu Board would be reluctantly compelled to raise its loan independently.

The letters were considered in committee, and bn 'the motion of Messrs. Seifert and Whibley, the following motion was passed: “That this Board is not in favour, on the information now available/ of a joint loan, but will agree to attend a .further conference if one is called.”

CHAIRMAN’S REMUNERATION. The Public Works Department wrote with regard to the proposed remuneration of £250 for the chairman. It was stated the usual practice was to allow £2OO except in cases where the undertaking of the Board is very large and the duties of the chairman more onerous than usuall If the latter sum was fixed the Minister would approve of it. > The chairman said the Board could only agree to the ITiinister’s view. If that was the Department’s opinion he did npt think they should push the matter. It would make no difference to his efforts, and if he found the payment was insufficient he would a\ once inform the Board.

Mr Seifert said he would like to see the chairman get the larger amount, but if that was the Department’s view they had no option but to agree at present. Mr Matheson said it was considered the chairman would have a great deal of travelling in the early stages of the work.

Mr Brown suggested that the chairman’s residence should be connected with the telephone, which was over two miles distant at present. It would be of very great ■ assistance to the Clerk and Board.

The Board agreed to the Department’s proposal in the meantime.

PUTTING THE LOAN BEFORE THE DISTRICT. Mr .Whibley asked when the poll would be taken, and as to the explanation of it to the public. The chairman said the poll would be ready for decision in about six weeks. He would address meetings in all the centres, of which there were about thirteen. .He knew he would have the assistance of the members when he came to their districts.

The Board thought it .Was very neebssary that the Engineer should accompany the chairman on his tour, so that any technical questions asked could •be fully answered. GENERAL. 'ldle action of a .sub-committee in completing an arrangement tor the use of the new offices adjoining the County Chambers at a rental of 25/ per week was confirmed.

Mr Mathesori referred to the remarks made by Mr Brown in regard to the telephone to the chairman's residence. He moved that the matter he referred, to the Finance Com onittee. It would be of great assistance to the Board to have the chairman within reach.'

Mr Gunning seconded the motion, and said it was a most reasonatOeproposal. The matter was referred to tne Finance Committee. ;

The chairman (Mr G. A. Monk) presided at the meeting, and there were also present "Messrs. Brown (Waikanae), Mathesou (Levin), Whibley (Foxton), Gunning (Shannon), Seifert (Horowhenuia), Kilsby (Otaki), Mackay (Paraparaumu) and Barber (Horowhenua).