PAYING THEIR WAY

Ashburton Guardian, Volume 60, Issue 247, 26 July 1940, Page 3

PAYING THEIR WAY

ELECTRIC POWER SCHEMES.

REVIEW) BY THE MINISTER.

(Special to the “Guardian.”) WELLINGTON, July 25. “The operation of the Government hydro-electric installations continues 1 to be most successful, and the results of the past financial 1 year were again very satisfactory,” said the'Minister of Public Works (the Hon. R. Semple) when presenting the Public Works Statement to the House of Representatives. The general position was that the Electric Supply Account hacl been able to meet all operational and interest charges, and liacl provided the stautory requirement of £1,836,101 lor depreciation as well as making £1,583094 available for the sinking-fund requirement of £1,835,704. In addition, £268,447 had been paid to the reserve fund from time to time. This meant that the system had paid all operating and interest charges and provided £3,687,642 in reserves, of which £1,079,34S had already been utilised for paying oft loans which formed part o| the original capital. Arrears of sinking fund still to bo met amounted to” £252,671. Capital invested in hydro-electric works in the North Island amounted to £10,429,240, the Minister said. From these works, £1,328,499 had been obtained in revenue, while operating expenses had amounted to £368,015. Invested capital in the South Island totalled £6,936,918, ancl this had produced '£613,612 in revenue, while operating charges had amounted to £174,950.' Demand! Increasing. “The demand for electric power still continues to increase, and some difficulty has been experienced in meeting all requirements during the months ol peak loading,” added Mr Semple. “However, work on additions to existing plants and on new installations is proceeding as rapidly as possible under present conditions. “At the main Waikaremoana station the third unit of 20,000 kilowatts has been completed and is now operating, whilst work on the tunnel and other features of the yew development scheme below the main station has been actively prosecuted. At Arapuni, tunnels for the two additional 21,000 kilowatt units have been driven, and it is expected that the installation of the machines will begin during the current year.

“A contract has also recently been let for control works at the outlet to Lake Taupo l for the purpose of regulating the amount of water that may be available for power-generation at Arapuni and any other power-plant that may he built on the Waikato River. Work is also proceeding on the new power station at the Rakaia River, which will use water from the Rangita~a irrigation race. Of the new 15,000 kilowatt units at Waitaki, one is practically completed and the installation of the other is well forward. Transmission Lines. “Necessary works in connection witli additional transmission lines and substations to meet increasing demands for power have been continued throughout tlie year. On the Cobb , River construction work on a hydro-electric scheme was started by a private company for the purpose of providing power for industrial and general requirements in the Nelson, Motueka and Golden Bay districts. However, the Government considered it advisable to take over the company’s enterprise and to complete the development itself. Negotiations have been oompletd, and this schme will, therefore, be eompleted by the Government, and it is anticipated that it will be ready for operation within the next eighteen months.

“The present unsettled conditions have caused delay in the supply of plant and materials from abroad, and it is still uncertain as to when receipt of some of the important plant items may be expected. The same difficulty in respect of supplies of materials has in recent months retarded the extension of the reticulation work carried out by the various distributing authorities. At present all applications for extensions must be reviewed and approved by the Electricity Controller appointed by the Minister of Supply, and to conserve materials for essential work it has been found necessary to require local authorities to defer, in the meantime, certain extensions, which would have absorbed comparatively large quantities of material for services that could reasonably be met by some other means.”