The Sun 42 Wyndham Street, Auckland, N.Z. TUESDAY, MAY 31, 1927. ARAPUNI SPOILS A GREAT RECORD

Sun (Auckland), Volume 1, Issue 58, 31 May 1927, Page 8

The Sun 42 Wyndham Street, Auckland, N.Z. TUESDAY, MAY 31, 1927. ARAPUNI SPOILS A GREAT RECORD

IT is a pleasure to turn from the lamentable financial position * of the City Council to the satisfactory condition of the Auckland Electric Power Board’s finances. The board has disclosed a record that is only a little short of excellent, and such qualification as is necessary must be attributed to causes beyond the control of the efficient administration. It pays to have good men in charge of public business. It is also right and proper to reward them with praise at least and even pay them well where and when payment is permissible. F or that reason alone the decision of the Power Board to increase the chairman’s honorarium to £4OO a year will be given appreciative support by the community. It may be taken confidently as one of the few occasions on which an honorarium will not prove to be an extravagance. The board’s operations last financial year were exceptionally successful. Revenue increased, the cost of generating power was reduced, reticulation covered a wide extension, and the turnover of money provided a surplus of nearly £65,000. Though a great deal of loan money was spent, most of the expenditure was confined to reproductive work. Moreover, there was no raiding of reserve funds as in the manner of the inefficient municipal administration. These, which have earned close on £7,500 in interest, are earmarked for particular works and purposes. There is only one flaw in an otherwise excellent balance sheet. This is its lack of power in a financial sense to yield a substantial reduction in the prices charged to consumers of •electricity. In normal circumstances, a surplus of £64,000 odd v ithout any concession to those who provided a considerable part, of it would have been indefensible. Unfortunately, the board is caught in a bog of abnormal circumstances not of its own making. The serious delay at the Arapuni dam construction works, where the luckless contracting engineers have experienced extraordinary difficulties which were unforeseen has spoilt the board’s admirable record. The board has been forced to surrender its policy and intention to make a reduction in consumers’ charges. The position is a serious one for everyone concerned. It was stated at the annual meeting of the board yesterday that the regrettable delay at Arapuni will necessitate heavy expenditure on the installation of additional plant for the generation of power to meet a brisk demand. As Mr. Holdsworth, the chairman, has emphasised, it would be a serious thing, indeed, to arrest that demand and throw back the industrial development of Auckland. It has to 'be regretted, of course, that the State’s contract to supply ample power from Arapuni within a specified lime, cannot now be fulfilled, thus forcing the board to incur extraordinary expenditure on plant* which subsequently will not be required. Is it reasonable that the board should bear the brunt of an obvious breakdown in the Government’s scheme for the supply’ of hydro-electric power? In view of the seriousness of the position and also the disquieting predictions about Arapuni the Government should waste no time on arranging a conference for the purpose of seeking a practical solution to a grave problem. PATRIOTS AND PROFITEERS » TO the mere observer, it is humorous to reflect that among 1 those who howled most over the alleged dire effects of the Dairy Produce Board’s control policy in London were the very wolves that had their teeth bared to rend the carcase as soon as control was removed. The fact is obvious, but it has no aspect of humour to the producer, who is now feeling the fangs of the speculator. Politicians and other “friends of the farmer” peered into the fog of big business in London and came away filled with the information that vested interests were kind enough to supply for their guidance. On the strength of what they had been told,"they brought about the collapse of price-fixing. Then butter soared, and the interests that had worked their will on the pliant minds of the politicians smiled large, fat smiles—and pocketed the proceeds. It has taken a Goodfellow to see through the fog that blinded the politicians and point out the true position to the farmers. And the farmers may well be wrathful at having been fooled as well as “pooled.” Mr. Goodfellow’s wonderful organising ability built up the greatest co-operative dairying company in the world for New Zealand. But his experience and advice were ignored when the politicians and the non-producing butter interests got together for the good of the farmer. And perhaps Mr. W. Grounds, chairman of the Dairy Produce Board, will be listened to now, when he talks about the speculator in our midst, who, eagerly taking advantage of the alarming statements concerning the Dairy Produce Board’s policy circulated by’ their business allies, rushed in to buy butter locall.v at many pence per pound less than the current pool was 1 o realise. The same speculation went on in cheese, and Southern factories were persuaded to sell at 7d lb. at a time when the board was obtaining B|d lb. at Vancouver. The patriotism of these speculators who were so busy howling down the Dairy Produce Board in the interests of the country should now be understood even by the perplexed farmer. It seems to indicate that there is at least some truth in the" satirical adage coined in war days—“ Scratch a patriot and you’ll find a profiteer.” Mr. Goodfellow and Mr. Grounds are at variance in their opinions on marketing. But whether Mr. Goodfellow is rioht in thinking that the hasty surrender of price-fixing at the first attack of vested interests has for ever rendered pooling and price-fixing of no avail, or whether Mr. Grounds is justified in his optimistic belief that they may still be successful, the fact remains that the speculator lies ever in ambush, on either side of the road, to lleeee the farmer.

Motorist Injured.—The car of the Ministers Discuss Unemployment. iistrict health inspector, Mr. M. C. The Auckland Ministers’ Association McLeod, while motoring- on the Thames last night discussed unemployment. Road recently, skidded into a drain. The seriousness of the position was Mr. McLeod was rendered unconscious, emphasised, and the clergyman decided tut on recovery made his way to to refer the question to their respective Paeroa. where he collapsed and was congregations, with the strong recomround to be suffering from concussion mendation that assistance should be ind bruises. given wherever possible.