Power Board Finds Finances in Disorder

Sun (Auckland), Volume II, Issue 387, 22 June 1928, Page 1

Power Board Finds Finances in Disorder

WAITOMO DISCLOSURES SECRETARY-MANAGER RESIGNS (From Our Own Correspondent) TE KUITI, Wednesday. Disturbing reports regarding the financial position of the Waitomo Electric-Power Board were found to have some foundation in fact, when, at the monthly meeting of the board yesterday, an unsatisfactory position was disclosed. The resignation of the secretarymanager, Mr, J. Kiernan, was also accepted, and the board's accountant was appointed to take temporary charge of the office. These steps were the outcome of the board’s decision regarding documents submitted by the secretary-manager showing the present financial position of the board. A reconsideration of the 1927-28 estimates showed that the actual expenditure had been underestimated by the sum of £4,193 3s Id, a deficit of £1,568 3s Id being made, against* an estimated surplus of £2,625. SECRETARY-MANAGER’S STATEMENT

In a lengthy statement submitted by the secretary-manager the various causes to which the unsatisfactory position was due were detailed. Among these were: Cost of running Te Kuiti plant, £950; loss through poor power factor, £600; loss through operation of flat rates in Te Kuiti daring change-over to Horahora, £300; loss through daylight saving, £250; a total ot £2,100. . . , Briefly the position of the board at March 31, 1929, will be: Deficit, March 31, 1928, £1,508 3s Id; estimated deficit year ending March 31, 1929, £1,817 9s Bd, a total of £3,385 12s 9d. Another £2,000 would have to be allowed for depreciation and sundry debtors, syhich would mean a bank overdraft of oVr £5,000. In the course of his report, the manager stated. “The finance of the board have got into a complicated state. . . . A good deal of the trouble has been caused by overspending the first £70,000 loan, and constant advances having been made between the powerfund account, original £70,000 loan account. and the £20,000 trading loan account, and the use of repayments from consumers on account of trading loan by the power fund account.” Considerable discussion took place on the position disclosed. Mr. A. Blackman said the people were waiting for information regarding the board. This would be supplied by the reports tabled. He suggested that the board should consider a reelection. He had been criticised at a public meeting for certain things he had said, in what he considered the best public interest. “We have made a shocking mess of this,” he concluded. Mr. Rothery made reference to street rumours regarding the board. The public apparently was more familiarised with the position than the board members. He was of opinion that there had been a leakage of information, and expressed dissatisfaction with the board’s staff. LACK OF SUPERVISION The chairman, after detailing events leading up to the present disclosures, attributed the board’s position to lack of supervision on the part of the secretary-manager, who should have informed him earlier regarding the matters that had brought about the present position. The office of secre-tary-manager had not been a success, though some held it would have been so if that officer had possessed electrical knowledge. Several other members expressed their surprise at the state of affairs, and pertinent questions were put to Mr. Blackman regarding the source of his information in connection with the loss on the Waitomo Caves Hostel installation contract, and other matters. After further discussion it was decided to hold another meeting in a fortnight’s time in order to consider revised estimates, which are to be prepared by the accountant, the chairman (Mr. Lee) and Messrs. Phillips, Rothery and Blackman being appointed a committee to meet and discuss the position with the accountant before calling the meeting. ___________