4.
7
should be at a level to secure a return of nut more than, say 12%,
on the paid-up capital of the companies excluding the post-1939 bonus element, it is for consideration whether the companies should not be asked to show reason why reductions of the order set out in Appendix II (which would still leave a margin for contingencies)
should not be brought into effect at an early dato. On receipt of the companies representations, if any, the position could then be further considered including permanent legislation on the lines of
the Telephone Ordinance. Precedents provided by other United Kingdom and Colonial legislation have yet to be studied, but the main pro- visions would have to be envisaged as follows:
B.. Further issues of shares or debentures to be subject to approval
by Governor-in-Council.
b.
C.
Charges to be reviewed by Governor-in-Council at intervals of
not less than 3 years at the request of either Government or
the Company and to be adjusted to a basis calculated to earn 12% on the "Basic Capital" (i.c. Issued Capital less the post-war bonus clement).
A proportion of earnings above 12% to be available for the
distribution of additional dividends or allocation to reserves,
the remainder to be applied in reduction of charges or in pay-
ment of additional royalties to Government.
d. Charges not to be increased without consent of the Governor-in-
Council which would not normally be granted while the Company was
earning 8% on the paid up capital.
10.
The survey of the operating conditions of the electricity
supply companies seems to indicate that in the public interest there
should be closer cooperation between the two companies. At present
a temporary cable links the systems of the two companies but no
arrangements have been made to replace it when it is removed in 1949.
It is believed that a permanent cable link and agreement with regard
inter-Company bulk supplies, on the basis of similar arrangements in
the United Kingdom, would enable substantial economies in operation
and capital installation costs to be effected by facilitating the
balancing of plant loads, the operation of the most efficient units, and the reduction of reserves of plant.
4th October, 1948.
า
No comments yet.
Private notes are available after approval.