DEPRECIATION AND RESERVE FUNDS

Sun (Auckland), Volume 1, Issue 106, 26 July 1927, Page 16

DEPRECIATION AND RESERVE FUNDS

POWER BOARD’S AFFAIRS PROPOSED LEGISLATION Legislation at present “on the slips” will compel each power board to set up a depreciation fund and place it in the hands of commissioners. When this was explained to Mr. W. J. Holdsworth, chairman of the Auckland Electric-Power Board at the Conference in Wellington last week, he had an anxious moment until having explained the peculiar position of his board. He was assured that the board’s programme would not be disturbed. The board would not be able to invest its depreciation fund under the legislation proposed, , but it had already tied its money up until 1933. That money was derived from a 24 per cent, depreciation fund, which was a very liberal amount, and it had been put in one of the very best of investments. Reporting to the board yesterday, Mr. Holdsworth said that the minis - ter had undertaken that the board would not be affected. The provision was directed against some small boards which were setting aside 1 per cent, depreciation funds. Boards would be allowed seven years to begin their fund and another fourteen years to make up leeway. STAMP DUTY PROPOSAL Another subject that had come up was the Stamp Department's requirement of one-third on each consumer’s application. If this was made retrospective on the board’s 40,000 consumers, it would be a big thing, so the Minister of Public Works had promised to bring the board's objection before the proper authorities. Various amendments had been suggested for the improvement of the power regulations gazetted about a fortnight ago, but Mr. F. T. M. Kissell, chief electrical engineer to the Public Works Department, had held out no hope to the conference until the regulations had been in operation for 12 months. Then the department would be glad of any suggestions. Owing to the shortage of power in the North Island the proposed big combined advertising scheme was held in abeyance for twelve months. A test case in the South Island had thrown a doubt on the powers of boards to cut down trees fouling the power lines. So the conference ha.d resolved to ask for an amendment to the law.