THE COST OF "HYDRO."

Auckland Star, Volume LIII, Issue 251, 23 October 1922, Page 4

THE COST OF "HYDRO."

It. is worthy of note that the Minister of Public Works s tated in the House on Friday that whereas the original estimate of the ci,.-1 of the Mangubao "hydro" scheme had been £400,000. (he estimate to-day was "about £900,000." As a matter of strict accuracy, Mr. Parry's estimate of the cost of complete installation for delivery on to the main transmission lines was £438.6.i4.'but perhaps 1 he odd fns.OOO \v ill he balanced by the "about" in Mr. Coates' statement. Mr. Parry's estimate was declared by him to be "quite a reasonable figure for a development of this size."' Ono may inquirr whether double that, figure will still be "'reasonable." Mr. Parry's estimate, if is only fair to say. had to encounter rising costs which he could not foresee, nnd as the Minister stated nn Kridny. more work hnd to be done on the foundations than had been anticipated. A big .JilTerenee between estimate and realisation, however, seems to he typical of hydro-electrical schemes, and we have frequently drawn attention to this factor in discussing the. Government's water-power policy and the popular hopes of cheap power. The difference at Mang.'ihau is a Dominion concern, for it is the..Governments intention to ba 1 - mice losses iv one enterprise again-t profits in another.