ELECTRICITY EXTENSION.

Auckland Star, Volume LII, Issue 72, 28 March 1921, Page 4

ELECTRICITY EXTENSION.

LOAN FLOATED IN LONDON. £500,000 AT 6J PER CENT. STATE GUARANTEED. CITY'S URGENT REQUIREMENTS. : A Press Association telegram from . London states that arrangements have , been made for the underwriting of the I City of Auckland's £500.000 loan, at 6_ ' per cent. The loan is guaranteed by j the Government of New Zealand. As the result of difficulties in placing the loan on the local market the Mayor (Mr. J. H. Gunson) repaired to Wellington while Parliament was sitting, and consulted the Prime Minister, aa the result of which instructions were j Hcnt by the City Council to its London agents to negotiate for the sale of the . loan. The agreement between the ! 'Mayor and Prime Minister was that the j loan should be offered in London at 6$ i per cent, with the New Zealand Government's guarantee, the currency being 'll | years, and the Council providing a sinkj ing fund of 2_, per cent. In discussing the loan this morning the Mayor remarked:—"Negotiations I have been in progress for the last ten i days, and, although the Council has not J yet received confirmation, there can be i little doubt of the correctness of the j cable. The underwriting is at par, j which the Council regards as satisfactory, and I am sure the majority of the ! ratepayers will similarly view the trangj action- | "A few weeks ago there seemed little ! prospect of such favourable terms being obtained," Mr. Gunson continued, "_§ the large corporations in England were paying much more. During the lart fortnight the London market has shown considerable improvement, which is reported to be due to the Russian trade agreement and other hopeful indications. With Mr. Massey. help by supporting the loan with the State guarantee—assistance that our citizens well appreciate —the Council has taken advantage of the present opportunity to get in early. As soon as the Council receives confirmation, tenders for the machinery will be definitely accepted, and the preparatory work at the city electrical station will be commenced. No time will be lost in carrying the entire scheme of extensions to completion. Mr. Wylie was due to leave London on his return on Friday, and will immediately on his arrival devote his attention to the supervision of the work." ATUCH-NEEDED EXTENSIONS. "Tbe machinery tenders accepted are all 'British." added Mr. Gunson, "the sum involved 'being £255,000 f.o_>., London. The balance of the £500,000 will be spent in Auckland. This will go in the work of extending the city station building, the installation of the machinery, extensions to the reticulation service, the building of a sub-station at Kingsland, a subway in Quay Street for a new main to the city services to carry the extra load, and general equipment, absorbing the whole of the £215,000. The Council should consider itself fortunate in just finding a market like this at a time of its extremity. Without this loan it would have been impossible to go on, and Auckland would have been confronted with a very unpleasant shortage in electricity. And this notwithstanding that the Council added 2000 horse-power last year to the city station. At the present time we cannot cope with the demand, but thia policy of extension will cover all requirements for some years to come. The capacity of the city station will be increased from its present horse-power of 9300 to 30.000. while the tramway power plant of 7SOO -horse-power will be held for a stand-by. All this .work ib designed to co-ordinate with hydroelectric power when available, out Auckland cannot wait for this, particularly as the sieain plant will prove qmt» 1 as economical iv the cost of output. The I scheme now to be commenced is the I largest undertaking Auckland has had ! in hand, and is likely to produce great : benefits to the community. The cost Of the money is reasonable, and the work is fuUv warranted if for no other reason than 'to ensure Auckland maintaining iu= supremacy."