ELECTRIC SCHEMES.

Auckland Star, Volume LV, Issue 188, 9 August 1924, Page 9

ELECTRIC SCHEMES.

FINANCIAL ESTIMATE. FUTURE PROFITS ASSURED. RETURN" OF 8 PER CEXT. (By Telegraph.—Special to "Star.'") WELLINGTON". Friday. The Minister of Public Works to-night ;ave a brief but highly important finan- | ial survey of two big hydro-electric ievelopment works in the North and South Islands, showing that the Govern - vent is thoroughly satisfied both eonerns will show a margin amply suffiieut to meet interest, sinking fund, and i-orking expenses. The Hon. J. G. Coates first gave details | if the capital outlay on Lake Coleridge, md the results, as follows: — Capital Surplus Year. outlay. Available. inif. .... £2«!).:'.mi .x\ per_«-eut. inn :-:i6.i>o3 2. IT 1020 ;air..7t>4 T.m 1023 45T.2 , ."-. 10.2(> ir>24 TOS.OOU .SIS The Minister explained that a variation in some of the above figures was due to capital having gone in which was not charged to the running account that year. The Works Department had to plan out its schemes carefully before it undertook hydro-electric development,, and he could, if time was available, give j full details of returns from Horahora | and Coleridge showing that both were , earning interest, sinking fund, and work- j ing expensed, which totalled S per cent. Forecast of Northern Schemes. The Minister said he could give a financial forecast made by his Department in regard to Horahora and Arapuni schemes which would show that in the year 192S the position financially would bo as follows: — Capital account for tbe Arapuni contract. £1,170,000 Expenditure t>y Department at Arapuni and on transmission linos and sub-statious f>38.000 At Horahora* 474.00-! On Ilorahora extensions 120,000 Total 2,322,000 The estimated revenue in 1928 would bo as follows: — Auckland Tower Bnard's guarantee £103,000 Xortu Sliore - Waitemata rower Board 12.VW10 Franklin Power Board 4.000 Rotorua 2..">00 Horohora Tower District 83,000 -Total £200,000 He added that if £2.5.000 was allowed for working expenses it left a margin of £184,000 to pay capital charges of S per cent. These estimates of revenue were very conservative, because they knew that the Auckland Power Board, which only guaranteed 15,000 kilowatts, i would be more likely to require 25,000 , kilowatts, so that they need have no I hesitation in coming to the conclusion that the money was being well spent, that the country would get a return, and that the taxpayers would not be asked to pay a penny, because these schemes would carry their own weight.