D—4

Proposed line extensions are based upon estimates of capital cost and revenue, and subsidies approved in the first instance are therefore provisional only. No payment of a subsidy can be made until after the line has been built and operated for one year and the costs and revenues accurately ascertained. APPLICATIONS FOR SUBSIDIES Applications for subsidies were invited by the Council in September, 1946, and the Supply Authorities were asked to forward only those proposed line extensions which would be at least substantially started in the ensuing year. No good purpose would be served by the Council allocating some of its funds on work which would not be started for more than a year. Applications closed in December, and altogether 132 were received from 27 Electric Supply Authorities. Details of these are given in Table I. Of the applications received, 90 have so far been approved for subsidies covering the building of 603 miles of line to which will be connected 992 new consumers. The estimated capital cost of this work is £292,469. The density of consumers in the areas to be reticulated is about only 3 consumers to every 2 miles of line. The subsidies provisionally allowed are 4*2 per cent, of the estimated capital cost, which figure is within the per cent, maximum allowed under the Electricity Act.

Table I. —Rural Electrical Reticulation Council: Summary of Applications received as at 31st March, 1947 Approved

Referred back for Amplification The applications of 4 Supply Authorities were referred back for additional details to be supplied. Deferred The applications of 3 Supply Authorities were deferred.

39

Supply Authority. Number of Applications. Route Miles. Number of Consumers. Estimated Capital Cost. Provisional Subsidy, per Annum. Ashburton Electric-power Board 22 51 69 £ 14,195 £ 857 Central Hawke's Bay Electric-power Board 4 52 65 24,944 1,046 Central Waikato Electric-power Board .. 2 11 15 5,453 153 Dannevirke Electric-power Board 11 18 31 11,010 274' Franklin Electric-power Board 5 22 21 8,075 427 Golden Bay Electric-power Board 1 12 27 7,000 280 King-country Electric-power Board 2 106 178 38,953 2,058 Manawatu-Oroua Electric-power Board .. 2 14 22 8,080 150 North Auckland Electric-power Board .. 6 24 64 11,087 495 North Canterbury Electric-power Board 4 25 28 7,586 474 Poverty Bay Electric-power Board 1 77 67 46,500 2,081 Springs-Ellesmere Electric-power Board 3 4 4 1,828 115 South Canterbury Electric-power Board 1 4 5 1,593 40 Southland Electric-power Supply 3 20 37 7,240 530 Tararua Electric-power Board 2 16 26 8,328 336 Tauranga Electric-power Board 8 19 55 9,373 210 Waimea Electric-power Board 1 39 163 29,891 598 Wairarapa Electric-power Board 1 66 82 39,776 1,750 Wairoa Electric-power Board .. 1 10 8 6,352 254 Waitaki Electric-power Board 9 7 11 2,805 202 Waitomo Electric-power Board 1 6 14 2,400 48