ELECTRIC LIGHT DEPARTMENT

Taranaki Daily News, Volume LIII, Issue 103, 9 August 1910, Page 4

ELECTRIC LIGHT DEPARTMENT

RE-ORGANISATIONI SCHEME. The conduct of the municipal electric lighting department is to be re-organised, on the Jincs recommended in the report of the sub-committee, published in Sat-j urday's issue. The report when pre- 1 sented at the Borough Council meeting last night caused some little discussion. The chairman of the sub-committee,' Councillor F. E. Wilson, prevailed with; his suggestion to take the clauses: seriatim. .! The first clause, to absolutely discon-1 tinue the branches of trading and indent-' ing, with a view of reducing book-keep-' ing, and more profitably employing capital, and avoiding disputes, was fully explained. Councillor Wilson said tna't with the Council removed from the position of competitor every man dealing in electrical appliances would become a traveller for the borough undertaking, with a view of introducing his wares and thus increasing the demand for current. Trading and indenting had returned a profit of £S7 last year, but that was, only the difference between cost price and selling value, and allowed nothing for time occupied in selling the stuff, and in settling disputes. I Mr. Black, the electrical engineer,' asked for his views, said he would : favour the motion, but mentioned that it would be advisable still for him co keep in touch with modern electrical de- : velopments, testing and experimenting with new appliances, and introducing j them. Councillor Wilson said he didn't pro-' pose that, but he did propose to discontinue expending hundreds in goods which k tliey might not sell, and the purcnase and sale of goods by men who had not sufficient knowledge of the nature of a contract between two parties to prevent I disputes. The Council had been very lucky in keeping out of law courts. In reply to a suggestion by Councillor Watkins, Mr. Black said New Plymouth was mot large enough for an electrical firm to start business nere for that trade alone, even if the Council went out of the line. The motion was carried. In moving clause 2, providing that the whole of the clerical work of the department be done at the Town tlall under the supervision of the town clerk, Councillor Wilson said the Council had not expected the engineer, when tney engaged him, to be electrical expert, accountant, and corresponding clerk, and it was unfair to ask him to undertake all this work. To obviate this, it would be necessary either to engage extra clerical assistance at the sub-station—-which would mean enlarging the building—or removing the work to the office of the town clerk, who as borough treasurer was already responsible ior the collection of moneys, and whose staff acted as collectors. Councillor Clarke seconded, and remarked that for the past year or two portion, of the salaries paid in the town clerk's office should have Been paid* by the electrical department, or the committee had found that one of the clerks was kept employed very largely on the department's work. The statement of the accounts of the department, showing a certain cgedit balance, was thus hardly correct. Mr. Geo. Browne, chairman of the electric lighting committee, agreed.with the motion, but pointed out that it would not altogether eliminate duplication. He refuted the suggestion that the department should have been charged with part of the salaries of tile town clerk's staff, arguing that the district fund 'had profited by the use of vac electrical loan moneys and the monthly payments by consumers. j The recommendations "that 5 per cent. lon the capital invested be set apart annually as depreciation and credited to a sinking fund account, and that the present y g per cent, sinking fund on portion iof the loan be applied to the balance of the loans raised for electric lighting purposes by payment of the amount to the account mentioned in the previous paragraph," were fully explained. Councillor Wilson said the sinking fund proposed was not really a sinking fund, but was being set aside thus so as to prevent any future Council "collaring" them for ordinary needs. A trading department like this should pay depreciation. Councillor Browne had always complained that the Council was taking bis (the electric light committee's) profits, and not giving him credit for it He was under a misapprehension, for the ratepayers 'had voted for the installation of the lighting system on the express assurance that it was going to ease the rates. So the Council had always taken the net profit and put it into the general fund. If this resolution was carried, there would be little or nothing to take. The not profit for the vear ending."lst March last was £1537 2s Od. , without > allowing for depreciation. If they sot aside 5 per cent, on £26,239, the amount; actually spent at present, it would all- i sorb £l3ll odd. and half per cent, on j balance of the loan £54(54, would take another £27, so that there would be' only a couple of hundred that conlrl and ' would in a private concern bo called net profits of the department. The Council was talking of new works, and of tram-

ways. Let them put the matter fairly before the people. Tell them that tliey had borrowed about £27.000, and that at the end of five years they showed :> profit of £300! If'the ratepayers liked thorn to grant a further loan, —let taeni.

He had it from Mr, F. Black's report to tlio Napier Borough Council that 5 per cent, was a fair average depreciation <>n electrical plant.- Machinery and polos should carry ten. and the local poles (imported on what was almost a guarantee of 40 years' life) should carry more, for some wouldn't last 20 years. Personally, he thought the money put aside in accordance with this resolution might he used on repairs or renewals.— The motion was carried, after brief discussion.

The i>!!if.h"i..ri- clauses of the report pass-ml without discussion.