HYDRO-ELECTRIC CONTRACTS

Ashburton Guardian, Volume 69, Issue 262, 18 August 1949, Page 4

HYDRO-ELECTRIC CONTRACTS

Mr Semple’s Reply to Question OPPOSITION CRITICISM (P.A.) WELLINGTON, Aug. 17. Hydro-electric power contracts were briefly discussed by the House of Representatives to-day when the Minister of Works (the Hon. R. Semple) gave a written reply to a question from Mr W. A. Bodkin (Opposition, Central Otago).

Mr Bodkin had inquired about negotiations overseas for hydroelectric construction contracts, and in reply Mr Semple said: is the normal practice to let overseas contracts for the principal items of plant and machinery for hydroelectric works, and specifications are now ready for certain equipment that will be required in the next few years. However, overseas currency problems have become accentuated recntly. A decision as to what tenders will be called for will be made after the Government has re-examined the position in the light of the present currency situation.” . . _ , • Mr W. Sullivan (Opposition, Bay of Plenty) criticised Mr Semple for not being more specific about, the hydroelectric contracts. He said Maraetai on the Waikato River would not be finished by the time suggested and would not be generating power before 1954 or 1955, by which time there would be a backlog of electricity demand sufficient to absorb Maraetai s full capacity. Some East Coast boroughs were contemplating refusing the supply of electricity to new houses because of the shortage of power. It was essential to develop ? m j schemes. Midi as could be developed on the Rangitaiki river to meet the “tough spot” that threatened until major schemes could be finished.

“Evaded the Issue” Mr W S'. Goosman ((Opposition, Piako) said the Minister had evaded the issue. Some machinery for Maraetai had been in the country nearly four years and would not be required for some time yet. The Government gave a considerable portion of that order to the United States, claiming that British quotations were dearer, but New Zealand sold its produce to Britain and must buy from her. The House wanted to know .whether dollars, now urgently needed for other things, were to be spent on plant for the Roxburgh scheme and the Minister had evaded that issue. Mr Goosman said some months must elapse after the installation of the first unit at Maraetai before the second unit would be harnessed and at (he very earliest Maraetai would not be generating at full capacity before 1955. This year, with abundant water supply, ‘power shortages were widespread in the North Island and, if there was a drought between now and the completion of Maraetai, there would be a catastrophe. “The Government is throwing the people in the North Island to the wolves as far as power supply is concerned,” said Mr Goosman.