‘INEQUITABLE SYSTEM’

Wairarapa Times-Age, 17 March 1939, Page 5

‘INEQUITABLE SYSTEM’

WAIRARAPA POWER BOARD GUARANTEES SURVEY OF UNRETICULATED AREA. MEMBER SEEKS INFORMATION. (“Times-Age" Special.) An assertion that while the present rate of charges were reasonable, the basis of the existing guarantee system was quite inequitable, was made by Mr F. C. Daniell at yesterday’s meeting of the Wairarapa Electric Power Board during a discussion on rural reticulation.

In face of some opposition, Mr Daniell secured the passage of a motion that information regarding a survey of the board’s yet unreticulated area be brought up to date in respect of capital costs, maintenance charges, prospective revenue and probable losses. Mr Daniell, who has raised the question of the extension of rural reticulation at successive meetings, said that practically all the information he desired was already available in the office. The board, he said, had come to the end of its existing guarantee system.

The I chairman, Mr A. Campbell Pearce, said it was a very big question and would require an enormous amount of work.

Mr Daniell said he believed they could find a better guarantee system.

Mr Pearce: “The abolition of the present guarantee system is the most uneconomic and most unbusinesslike proposition' that has ever been put up to this board.”

Mr Daniell: “As each guarantee expires in the country districts we are getting an additional loss.” Mr Pearce: “The guarantee system ensures that consumers put in ranges and other equipment and not merely bare necessities.”

Mr Daniell: “I am not suggesting that we abolish guarantees, but merely the present type of guarantee. I believe that our scale of charges is sufficiently reasonable to be maintained until we can extend further into the country districts. Capital works should be supplemented out of revenue and not done solely out of loan moneys. I think we can gradually eliminate this type of guarantee system, which is quite inequitable.” Mr Pearce: “I hope that Mr Brown (Secretary-Manager) will be able to simplify the matter of charges and remove some of the present anomalies. It is not reasonable that this board should bind itself down not to reduce charges for twelve months.”

Mr Daniell: “What I want is information on whicn to base a new system of guarantees.” Mr W. Howard Booth: “We have nothing in view regarding the abolition of guarantees.” Mr W. A. Tate: “You are merely beating the air. The financial position is so doubtful that it is no use talking of further extending rural reticulation at the present time. This is only going to make a great deal of work for the staff and then we will be able to make no use of the information. I am in favour of reducing charges to consumers who contribute to the business. Our revenue would still further increase if charges were reduced. I do not know where the money is going to come from for further extensions.’” Mr Pearce: “The reticulation of Te Wharau, Stronvqr and Westmere districts would result, it has been estimated, in a loss of £l5OO a year. It is an impossible scheme.” Mr Daniell: “I say that a better scheme can be evolved and that w.e can give a better service without increasing costs to anyone.” . After some further discussion, Mr Daniell’s motion, as reported above, was seconded by Mr J. W. Colquhoun and carried.