HYDRO-ELECTRIC PROPOSALS.

Auckland Star, Volume LIII, Issue 23, 28 January 1922, Page 6

HYDRO-ELECTRIC PROPOSALS.

In t.ie Publiv Work-s Statement the Minister, expressing the views of departmental experts, strongly favours a small number cf large generating stations aguinet a large number of smaller stations. Experts are not agreed upon this point, and when they differ who sluill decide? But whether a small or a large number ie erected the policy of rapid construction urged by the Minister ie absolutely sound. It would be wiee, h« maintain*, to hold back as much construction as possible until the money m-arket 15 more favourable, and then de the work quickly on carefully coneidered lines. Wβ note that the Mirrieter drawe attention to the supreme importance of the capital cost in hydro-electrical undertakmgu because this m matter on which there is widespread and dangerous ignorance. People have the idea that because there is plenty of water running to waste in New Zealand it must therefore be cheap to use for power. They eeem to think that rt can be harneeeed with miraculous ease, that the State can act as a kind d Moeee striking the rock. The fact is tiat frequently the coat of harnpaeing tte power, as at ArapuDi, ie extremely hfavy. There it. a danger in such cases that the capital charges may be so higr that it may not be possible to supply power at a rate that will substantiall* benefit manufacturing industries, rhe capital cost is the governing factor in these New Zealand projects. It is estimated that complete schemes for both islands will cost thirteen millions, of wlifrh eleven and a half millione are rxpeidable, according to the department's plan, by the year 1029. Thirteen mil1/ons of money ie a large amount, to .md and pay interest upon. We confess to doubting whether even by 1929 the Dominion's industries will be in a position to use all power so generated, or tjj shoulder interest and working expenses. We doubt still more whether the Dominion is able to raise so much money in this period and at the snmc time do the necessary work to roads and railways. There will be general disappointment throughout the province that developments at Arapuni are not to be actively prosecuted in the meantime. Wβ would like to see seriously coneidered the suggestion that we have made previously that leading British conetruction companies should be approached with a view to ascertaining whether favourable terms cannot be obtained for assuming complete responsibility, including finance, for hydro-electric installation. Proper safeguards of the public interest could be devised. Kapid expansion and development of the natural resources of the country are its most urgent need, and capital from abroad ie an eseenUal for this purpose. Auckland, the area of the Dominion that contributes most largely the revenue of New Zealand, should not be left for a number of years in a position of inferiority as compared with jiouthern districts, becauee Government finance is unquestionably overburdened