HOROWHENUA POWER BOARD

Shannon News, 27 November 1928, Page 3

HOROWHENUA POWER BOARD

NOVEMBER MEETING. The monthly meeting of the Horowhenua Electric Power Board was held in the Municipal Chambers, Levin, on Tuesday, there being proseuL-idessrs G. A. Monk (chairman), W. K Larger T. G. Vincent, R. Bvvant, L.fe. Morse,’ C. Blenkhorn, A. J. Fetherick and ‘A. Seifert, Mr P. W. Goldsmith (secretary and treasurer), and Air JAj Smith (engineer). WHITANUI FLAXMILL. A letter was received from WJntamu, Ltd., intimating their intenticn ty shift the scutcher shed from its position near Foxton to the mill site, ihej expected to be ready for scutching in the new shed in- about four weeks and would like the Board to arrange 01 them to couple up with the power at the mill on or before December Ist. They understood that the Board wou . be able to make whatever alterations weie necessary . without disturbing stripping operations. ■ The secretary reported that he had replied stating that the necessary alterations would be attended to withou. delay and that stripping operations would not be disturbed more than was necessary. . , , , The matter was left in tne hands or the Engineer, who stated that arrangements for the change-over of the sup- / ply had been made. The shed had not yet been shifted. LIGHT AND HEAT FOR CHURCHES An inquiry was received from the Opunake Power Board as to whether this Board made any concessions in respect of lighting and heating of churches in rural areas. The Secretary reported that he had replied that the charge was £2 per annum, this being the seaside week-end rate, which included churches and schools; also that this Board had not dealt with any special rate for church heating. The action of the secretary was endorsed. INSURANCE. The South British " Insurance _ Com- , pany forwarded particulars relating to public risk policies, the rates for which had. been revised and the scope of cover enlarged. Previously a flat rate of £5 per cent was charged irrespective of the Power Board concerned, so that in the past the smaller Boards had had to pay the same premium as the larger Boards, provided the amount of policy had been the same. The rates were now based bn the number of consumers and on the amount of wages expended for work done elsewhere than on the premises of the Power Board (excluding clerical labour), thus tending to .lower the cost to the smaller Boards. Assuming that the consumers numbered 3000 and wages £3500, ,the premium for a policy with a limit ot indemnity for any one accident of £SOO, and £2OOO indemnity for the term of the policy, would be: 3000 at 2s 6d per 100 consumers, £3 15s; £3500 at 5s per cent, £8 15s—£12 10s; plus 100 per. cent, £l2 10s—£25. Previously only one-fifth of the amount of the cover could be applied to claims in respect to accidental damage to property, but- now the. indemnity was in respect of both bodily injury and damage to property. '.The Chairman stated that the Board had not yet gone very fully into the question of public risk insurance. He moved that the matter be referred to the Finance Committee, to report upon at some subsequent date. The motion was carried.

SILVER PINE POLES. Mr R. .-Newman,-Pokaka forwarder! a letter containing quotations for sii ver pine poles, sapped and finished, for use in electric line construction. He stated that these were equal to hardwood and had lasting qualities superior to any imported timber. They had been extensively used in Taranaki, with good results. 'The Engineer stated that the poles in question would cost more, after freight had been, paid, than the hardwood poles used by the Board. Silver pine poles would last as long as hardwood, but they would break a little more 'easily and in some cases they were not as straight as the hardwood poles.. Mr Barber stated that a number of them were used by the Manawatu Power, Board.

The Chairman: They had an interest in the bush. , “•

Mr Vincent: The silver pine poles have great lasting qualities. It was decided to refer the comminution to the Engineer, for investigation if he thinks fit.

REMISSION OF LINE CHARGES. Mr H. E. Strawbridge, .Paraparaumu, writing with reference to the power line for which Mr Leach and himscl r. were charged, and which came from the end of the road to where the branches were taken into their houses ; —a distance of about seven chains—stated that they had carried the road on another 10 chains and the power line was now. on the road which the Hntt County Council was going to takeover, so they would like that: amount deducted from their accounts.

The Secretary stated that the charges involved were £6 8s 10s in one case and £6 9sJ.od in the other. Mr Petnerick stated that he had made some inquiries concerning the road, which had been formed and which the Hntt Council was going to metal. The Chairman said that the point af - fecting the Board was whether a road wa3 in existence when the lines were gut. up—that was to say, a strip of land dedicated. Mr Petherick: It was dedicated. The Chairman: Then we have no right to charge. Mr Petherick: It was dedicated right through to Waikanae. The Chairman: When the line was built, it was on the understanding that .this particular portion of the line was to be paid for by them as a service line, but a portion of our main. If we knew that eight or ten wub

going to be a charge on the Board and not on the settler, we might have hau to ask for a higher guarantee. Otherwise I think they ' are justified in asking for this to be remitted. On the motion of the Chairman, seconded by Mr Petheriek, it was resolved that the charges in question, be remitted, provided that satisfactory evidence is forthcoming that the road is dedicated. SUPERANNUATION PROPOSAL. . A copy was received from the National Provident Fund Department of the circular issued to local bodies calling attention to the facilities provided by that Department for superannuation for their employees. It was mentioned in the circular that the scheme had been adopted by the Auckland, Wanganui and Rangitikei Power Boards.

The chairman stated that the question of superannuation would come before the Finance Committee. Accordingly he- moved that the information be referred to that committee. The motion was carried. ! TREASURER’S REPORT.

The Treasurer reported as follows: —

Accounts. —There has been paid away since last meeting the sum of £694 13s 7d, wages, salaries, benzine' and railway freight on poles forming the largest items. These accounts are now submitted for confirmation. On the pay roll for the day there are some 35 vouchers totalling £2020 18s sd. Ot this sum the chief payment (which includes interest and k portion of principal repayment) amounts to £1356 16s sd. The balance of £670 2s is made up by payments for poles and timber £192, meters, insulators, eable, etc., £2ll, spares and tyres £35, ranges, waterheaters. elements, etc., £62, and many sundries. . ' Receipts. —The receipts for ■ the month of October amounted to £4906 7s '3d, towards which amount receipts from electricity sales accounted for £3782 Is sd. Naturally the loss of about £IOOO of revenue from the flaxmills reduces very considerably v the takings to date. The following table shows receipts for the month and also for the present financial year so far as it- has gone (shillings and pence omitted): — ' April-

Colleotion of Accounts. —A good deal of time is put into this phase of the Board’s work. For the past two years many of our consumers have experienced difficulties in meeting their obligations to the Board, and in many .cases it was necessary to extend the time for payment of the instalments on the electrical 'installations. Of late, however, there are indications of a gradual improvement and money is coming in more freely, although' there are yet some cases where the financial Strain is still acute.

Loan Expenditure!—With the accounts for payment for, poles, cable, insulators, meters, etc., together with provision for ‘payment within a few days of five tons of bare copper cable, the loan moneys already raised will be exhausted. Until the Board determines what further extensions are to be made, so that the amount of loan money required can be ascertained, the power fund or revenue account, can advance whart is necessary to carry on in the meantime. When further loan money-is-raised these advances can be paid back. Investment, of Reserves. —At the present stage of the Board’s operations, it is not advisable or safe to invest its reserves in its own business; it cannot take up its own debentures. With the consent of the Minister it may,-how-ever, invest reserves in the debentures of other Power Boards if it so desires. Up to the present the available reserves have been placed on fixed deposit for short periods at the Bank of New- Zealand. The time has, perhaps, arrived when the Board should consider or approve investments for a longer term at a higher rate of interest.

FINANCIAL ADJUSTMENTS

The chairman referred to the Board’s having exhausted the loan money raised, amounting to £190,000. lie stated that the Secretary and himself had been investigating as to whether certain reserves which the Board held, and which thefy thought the 3oa,rd should still retain., could be invested in the Board’s business and still be available, if bad times came, to meet payment of accounts, but which would be interest-earning to a greater extent than they were to-day, through being on short deposit in the, bank. They were informed, ho we veil, that while the Board might temporarily use its reserves, ..-to be subsequently paid back out of loan, the loan did not allow of investment in the Board’s own business. They were informed that they could take up debentures with other local bodies, if necessary. He did not know that that was just exactly what they wanted. What the Board would have to consider was the question of whether they should take some steps to invest this money and secure a. higher rate of interest than at present while still having the money available if they struck rather difficul; times. In the meantime, it would be well to use sqme of that money in reticulation that was going on, and when they saw the probable amount that would be expended, in twelve months, they could raise a loan to pay it back. They did not know whether they would want £SOOO or £IO,OOO at this moment, but in twelve months the Board would probably know, having expended some of the money, and they could then raise £IO,OOO to repay the amount. The secretary said there was a rather obscure clause in the Finance Act of 1927 which ga-vp authority fco local

bodies to use their funds and have them i efunded when they raised a loan, provided, of course, that the loan was authorised, as the Board’s loan was. The chairman lemarked that the Board still had £70,000 of authorisation, having raised £190,000 out of £200,000 authorised.

The report, was adopted. MAIvERUA-RANGITANE PROJECT. Mr Seifert, referring to the iccc-nt extension of the power line, informed the Board that the settlers would hardly like to face the expense at present iii addition to the guarantee, but there was a possibility of more land being cut up along that line very shortly, and that would mean more farmers and milking plants, which would overcome the question of the guarantee. The Chairman: I think that will be the best stand for the present.

Oct. Oct. - £ £ Electricity 3782 23,045 Penalties .. 28 185 Installations and service lines .. 923 4080 Interest on installations 51 259 .Consumers ’ deposits .. 7 82 Cottage rents and sundries 114 457 £4906 £28,112