Project Already Payable.

Shannon News, 27 April 1926, Page 2

Project Already Payable.

A SOUND CREDIT BALANCE. PULL ALLOTMENT OF CURRENT TAKEN UP IN TEN MONTHS. Siildomin the history of local government in the Dominion htis such a splendid achievement been recorded as that standing to the credit of the Horowhenua Electric Board. The results of the first year’s operations under a reasonable consumption of current were put before this week’s meeting at Le•vin in statements'by the treasurer (Mr. P. W. Goldsmith) and comments thereon by the chairman (Mr. G. A; Monk). These will be found reported at length into-day’s issue of the Chronicle’' and will be perused with interest and satisfaction by ouf readers. The salient points,revealed are: — (1) The 1 net profit for the year * is £10,383, which with the balance from last year of . £2398, brings the

total credit to £12,781. .''■■' It is to be remembered .however that by reason of the statutory powers given to the Board and the approval, of the Minister for Internal Affairs,,, twp years' interest' and sinking fund has been paid out of loan money, which next year must be paid out of revenue. Had it been necessary to pay the in terest. out of revenue this year, the profit, would have ' been reduced by '£9ooo. While careful management will be essential it will'be conceded as a remarkable financial success that in' it.first year of operation the Horowiiiiiua Board should be able to show anything to credit at all. ,'(2) Within ten months the Board took up the full allotment of •current that the Public Works Department estimated—when the Mangahao scheme was inaugurated —would be sufficient at the end cf the fifth year. On, April loth of this year, there were 2219 consumers connected up. Ir, was originally estimated that after five years' operations ,thc Board would have round about 2000 consumers. The .industrial, motors in use already total 153, the milking motors 235, heating and ironing points 2030, there are 154 ranges and 301 water heaters. (3) It can now be stated definitely that there will be no need to collect a rate to finance this power Scheme. The two largest Power Boards m the Dominion have both found it necessary to .strike heayy rates over their districts to supplement their revenue. The Southland Power Board last year,collected £66,000 by way of rate levied on the unimproved value of all .the land in its district, whether the power is available to it or not, the rate in the £T being* lid/. The Thames' Power Board has also struck a ' substantial rate throughout its large district, creating much, indignation, especially amongst non-users of power. (4) The • Board is to consider giving such concessions as the past year's profits and the coming year's prospects warrant. The suggestions are that .the dairy industry should receive the'first rebates, possible, while the meter rent, to which many consumers object, is also to be considered. It is considered that, by encouraging the greater use of the power by the dairying "industry, this load can be so built -up that the meter rent could very soon be dispensed with, it being primarily a revenue-producing levy. Where exactly the cut will be made is to be decided by the Board at its May meeting.. • . From this outline of the position it will be seen that ' the Horowhenua Power Board is in. an eminently, sound position and the'district can be pardonably proud of the efficient. organisation and prudent administration on the part of the engineering and secretarial staffs and the Board itself that has been responsible for so splendid a success.