1.—15

The next table, which summarizes the previous two tables, gives a general picture of the annual payments made by Electric-power Boards over the period under review. The fact that Electric-power Boards to-day are expending approximately £4,000,000 per annum, shows that they are a very important factor in the economic life of the community, and, apart altogether from the importance of electricity itself, the financial significance of these Boards cannot be overlooked in the consideration of the general prosperity of the country. There was some suggestion that Electric-power Boards were expending excessive amounts on unnecessary buildings. For instance, it was suggested that the Auckland Electricpower Board's building was. unnecessarily large and ornate, but an examination of the actual position showed that the Board itself was actually using most of its large building, and that this utilization • would extend ultimately until practically the whole of the building was used. However, we do not consider that Electric-power Boards are justified in expending large amounts on ornate buildings, but rather that their funds should be used in the general reduction of charges. There is little justification for Power Boards complaining that municipal supply authorities use any profits they make from electric-power distribution in the relief of rates if the Power Boards utilize any profits they make for other purposes than the ultimate reduction of the price to the consumer. The Boards, however, would not be advised to take a short-term view, but, on the other hand, unnecessary _ capital expenditure should be avoided in the interests of the ultimate consumer —that is, the population of New Zealand.

Table showing Payments of Electric-power Boards from 1924-25 to 1943-44

(c) Indebtedness and Annual Loan Charges The following table shows the net loan indebtedness of Electric-power Board districts over the period under review. The whole period has been one of steady expansion, although the major constructional work was completed between 1924 and 1936. There has not been, however, the same reduction over recent years as in the case of territorial local authorities, due to the fact that a great deal of developmental work still has to be carried out before New Zealand is fully provided for electrically. Table showing the Amount of Net Indebtedness on Account of Loans of Electric-power Boards from 1924-25 to 1943-44 £ £ 1924-25 .. .. 6,297,181 1934-35 .. .. 11,273,421 1925-26 .. .. 8,391,404 1935-36 .. .. 11,267,887 1926-27 .. .. 9,611,757 1936-37 .. .. 10,475,982 1927-28 .. .. 9,711,331 1937-38 .. .. 10,268,421 1928-29 .. .. 11,132,242 1938-39 .. .. 10,728,591 1929-30 .. .. 11,566,517 1939-40 .. .. 11,260,155 1930-31 .. .. 11,716,463 1940-41 .. .. 11,163,188 1931-32 .. .. 11,602,047 1941-42 .. .. 10,949,662 1932-33 .. .. 11,298,909 1942-43 .. .. 10,755,336 v 1933-34 .. .. 11,319,297 1943-44 .. .. 10 427,805

* Includes expenses of management. f Expenditure only, actual payments not available. X Includes amounts paid to sinking funds and for repayment of loan-money.

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Financial Maintenance Adminis- Amortization m l Other Total *•» Construction. 0°vS,S •»»* " **—■ »*>—■ £ £ £ £ £ £ £ , 1924-25 .. 2,230,127* 293,044 .. .. 240,347f 2,763.518 1925-26 .. 2,477,285* 256,698 .. .. 125,575$ 2,859,558 1926-27 .. 2,326,068* 459,845 .. .. 213,318f 2,999,231 1927-28 .. 2,234,027* 572,568 .. .. 284,927$ 3,091,522 1928-29 .. 1,766,894* i 636,612 .. .. 378,34lf 2,781,847 1929-30 .. J,745,901* Is 683,436 175,826 .. 175,621 2,780,784 1930-31 .. 1,874,104* "3 718,844 186,635 .. 198,532 2,978,115 1931-32 .. 1,427,162* « 744,532 200,336 .. 173,778 2,545,808 1932-33 .. 1,318,096* « 727,594 202,311 32,493 148,841 2,429,335 1933-34 .. 1,250,654* & 638,879 196,734 45,529 109,241 2,241,037 1934-35 .. 1,648,071* 614,697 196,315 16,170 126,869 2,602,122 1935-36 .. 1,344,378* 610,271 232,325 50,692 111,780 2,349,446$ 1936-37 1,731,885* 572,005 233,371 58,214 97,990 2,693,465$ 1937-38 .. 2,058,338* 518,042 253,712 49,639 83,389 2,963,120$ 1938-39 .. 2,281,479 218,609 519,906 280,334 26,133 89,041 3,415,502 1939-40 .. 2,394,748 242,382 559,356 336,392 75,347 161,290 3,769,515 1940-41 .. 2,469,259 259,003 566,347 367,694 63,750 145,603 3,871,656 1941-42 .. 2,721,280 270,560 560,521 371,172 65,535 166,272 4,155,340 1942-43 .. 2,225,570 264,380 505,283 408,838 51,534 153,883 3,615,488 1943-44 .. 2,432,798 271,558 492,713 434,015 54,470 145,137 3,881,291