TO TRADE, OR NOT TO TRADE.

Shannon News, 27 March 1923, Page 3

TO TRADE, OR NOT TO TRADE.

POWER BOARD POLICY. AND OFFICE ACCOMMODATION. Inquiries by Mr W. H. Gunning at last meeting of i the Horowhenua Power Board led to a long discussion upon the policy of the Board in regard to doing repairs for consumers and trading m fittings. Incidentally more was heard of the site of the Board's, offices. A plan was before the meeting, as ordered by the Board, giving some idea of the accommodation that would be requir ed, the estimate for the building being £1650. Mr Gunning asked whether the Board would be prepared to advance money to consumers to instal machinery and not charge anything "in the way of interest until power was available. This might be preferable to wailing until the power was turned on, because the Board would then commence to receive revenue as soon as power was available, and there would not be the same rush as if everyone wanted installa- j tions at once later on, with a possible shortage of men. Another point raised by Mr Gunning was whether the Board would stock and supply motors. Otherwise there might U such a run on them that the supply would not be equal to the demand.

The Chairman said the Boards thai were advancing money as suggested had had to take up more loan money than they could use, and they were utilising it by putting in installations for consumers. This Board was only taking up the money it required. They had already discussed the pros and cons of assisting consumers and decided how far they would go, though, of course, it might be advisable, later to go further in that direction. The question of trading in supplies had not been discussed by the Board, but. from the experience of some of the Boards, tihey needed to be very careful. The Board's main function was the reticulation of the district, and the purchase and sale of power, and they made if quite clear when going through the district that they did not propose to trade in supplies.. The Board would arrange for the linking up of blocks of consumers, but in all parts of'the district various electrical firms would have local branches or agents for the supply of requirements. He had no fear of a shortage of motors. The Board should feel its way very carefully on the' question of going in fir supplies.

Mr Gunning: Motors are an absolute necessity. The Chairman: One Board boughl some hundreds of. motors ■■ and has them in stock to-day. Motors can now be bought at half the cost they paid. Mr Matheson moved that a sub-com-mittee be set no to take into consideration, the whole policy of whether the hoard was going to become a.retailer of supplies or not. The matter was largely one of finance. The Chairman expressed the opinion that before anything was done with reference'to trading or in regard to offices, a committee be appointed to investigate the policy of Boards in the Auckland district, and whether they favoured offices in a certain position. The matter was not urgent, and a recommendation could he made to the incoming Board. One of the main arguments that had been used wa« that if a consumer had anything wrong with his gear he wanted to be able to get to the Engineer and his workshop as soon as possible. That rased, the question whether the Board was going to run a. repair workshop and become a purveyor of supplier Mr Gunning said he did not want anyone to think he was advocating trading by Ihe Board. He believed that I was better left to private competiItion.

Mr McKay could not see why the matter of trading should be coupled with that of offices. His idea wasthat the Board should build its own offices on its own land. He was more satisfied since he saw the plan before the meeting. The Board would get its offices for £IOO a year, and no other offer could compare with that. Further, at, the end of 36 years the Board would have an asset Which it would not have if it rented offices. He built its own offices in Wellington and was now drawing rents from them as well as living rent free itself. The Chairman said that was quite a correct policy where they could sub-let.

( Mr McKay considered it a far-sight-ed move to build their own offices on • their own land, and moved accordingly. The Chairman explained to Mr Ros.-. a new member of the Board, that there was another prdposal to lease a suite of offices from the Levin Borough Council in the town. He the building of offices was not an immediate necessity, and they did not want to have a building for which ihoy had no use. if they were gone' into a Mildfng- scheme for them selves, let 'them get, into the centre of the-t'nvn. where they could build shops and let

Mr McKay contended that the people who came to do business with ihe Board would come by train.

The Chairman: I don't see the necessity of coming here to do much business at all. The consumers will pay tneir monthly bills by cheque. Mr McKay: We will nave our troubles. The Chairman: You won't come to the Board with them.

Mr McKay: Where will we take them?

The Chairman explained that it was not the policy of the Board to go :nto the repair and retail business. Mr McKay said the policy would have, to be changed, then. He considered tihe Board would need to do everything possible to attract consumers, and it was going to be disillusion- • 4 if it thought there was going to be a rush to put power in when it was available. The Board should build its own offices on its own property, or buy a section near the railway. In the event of a breakdown of any kind that was the place people would go for advice or to get goods with the hallmark of quality on them.

The Chairman: You would have to employ a staff of assistants. Mr McKay considered that if the Board built shops at Weraroa they might get, private firms to take them, and consumers would then be able to get their electrical requirements close to expert advice, and would not be likely to have cheap fittings foisted on them.

The Chairman urged carefulness, ue pointed out that immediately the Board went into new offices its administrative expenses would increase greatly. Why should they rush into building new offices.that might not be needed for twelve months? Before committing themselves they should ascertain the experience of otlher Boards. The new Board should also be given an opportunity of considering the matter.

Mr Ross suggested that if they were going to send a committee to other districts it should go immediately, it would be three months before anything could be done. Mr Barber said that, after listening to the discussion, it seemed to him that what they had to do was to put tlheir policy on the table first and settle it. Probably they would find they were spending too much on buildings. Mr Matheson said Mr Barber had exactly stated the position. It was absolutely essential that the Board should declare its policy in the matter of trading. He pointed out that the Board's district extended practically from Paekakariki to Rongotea. Who were going to be their customers from the point of view of retailing? They could only 'look to the people from this borough and the adjacent district. Was it going to pay ihe Board to put in a staff and cater for that, with the chance of keen competition coming in. In any case, people would look for showrooms in the business area, not away in a paddock somewhere. He knew perfectly well that the estimate before the Board could be "knocked into a cocked hat," and could show where the Board could be saved 6J per cent on £BOO for twenty years. He urged thorough investigation of t'he whole position.

The Chairman said the public were not misled in the matter. They were distinctly told that the Board would not he a trader, but" only a purveyor of power. Mr Seifert considered they would have to allow 10 per cent on the esti-. mate per annum to cover interest, sinking fund, maintenance and other charges. In answer to Mr Brown, the Engineer said he did not know of any supply authority which went into the repair business. They could not keep the necessary plant for all classes of repairs, and the probability was that private firms would be able to do the work much cheaper. The Board's staff would always be ready with advice and assistance—no doubt they would be first on the spot when any trouble arose. The 1 regulations be had drawn up provided for the quality of all supplies and workmanship, and the Board could withdraw the license of anyone who failed to follow tfhe regulations. Mr Kilsby considered the Engineer's explanation settled, whether they should trade or not.

In deference to the feeling of the Board, Mr McKay withdrew his amendment.

Mr Matheson's motion, seconded by Mr Gunning, was then put and carried as follows: "That a committee of investigation, consisting of the Chairman, Messrs. McKay, Seifert, Barber and Matheson be set up to go fully into the whole position of the Board's policy in regard to trading, erection of offices, board-room and site, also to receive the Levin Borough Council's proposals in regard to leasing a suite of offices to the Board, and to report to next Board meeting."

Mr Matheson said he was not.there as a. representative! of the Levin Borough Council or to push their scheme. If a better proposition could be put. up in the Power Board's interests he would at once support it.