The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News and The Echo. TUESDAY, OCTOBER 13, 1925. THE SHANNON POWER SCHEME

Auckland Star, Volume LVI, Issue 242, 13 October 1925, Page 6

The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News and The Echo.

TUESDAY, OCTOBER 13, 1925. THE SHANNON POWER SCHEME

For the oaves that lacks attitUnvt, For the wrong that needt r«*uta*ei, For th» future in the dlatance. And thm pood that we can do.

The cjifficulty that has arisen over the installation of a hydro-electric generating plant on the Shannon centres round a rather curious feature of the agreement made between the Free State Government and the German firm that has undertaken the contract. The SiemeosSchukert directors—so ifc is stated on what appears to be good authoritydrafted their estimates apparently on the assumption that Irish workers would be prepared to accept the German rate of wages. Not unnaturally, the trade unions concerned have refused positively to permit their members to take employment at any figure 'below union rates. But, according to the authority we have quoted, "all the calculations were made on the German wage scale, and the estimates will have to be revised if the wages now demanded are paid." The estimates are already sufficiently imposing. The first portion of the scheme is supposed to involve the expenditure of at least £2,500,000, and the total cost was put down by the contractors at £5,200,000. What it will oome to if wages are paid on the Irish instead of the German scale we must decline to guess. But it is not at all likely that the Irish unions will accept German terms, and that the SiemensSchukert firm, even with all the advantage of the exchange in their favour, will be able to make a success of the scheme, from their own point of view, if they are compelled to increase the proposed rate of wages heavily all round. The fact that this contract was let by the Free State Government to a German firm has received in certain quarters a rather sinister interpretation. But it is only fair to assume that the Premier and his colleagues looked at the whole question from a strictly business standpoint. In view of the industrial conditions now prevailing in Germany, where the wage-earners work longer hours for less pay than in Britain, and with the rate of exchange still extremely favourable to the German manufacturer or producer, it is difficult or impossible for British firms-.to compete with the Germans, especially in such highly skilled technical work as that in which SiemensSchukert specialise. No doubt the Free State Government gave the contract to the Germans because they could get the work done most cheaply that way. And no doubt it is true that as the secretary of the Irish Transport : Workers' Union has said, Irish labour would have acted similarly if the contractors had been English or Scotch. In any case the refusal of the Irish workers to agree to the German terms appears to dispel whatever suspicion may have arisen that.-there was anything ominous or insidious about the action of the Free State Government in accepting the tender of a German firm for this great national undertaking.

It can hardly be doubted that this scheme, once carried into effect, -would make a prodigious difference to the industrial prospects of Ireland. Four generating stations are to be installed, representing in all 90,000 horse-power. In so small an area, there will be no difficulty in the way of distributing this great store of energy throughout the country with little of the loss generally experienced in long transmission systems. This means that practically every part of Ireland which has any natural facilities for the development of industries will be able to depend upon a permanent supply of cheap motive power. In a country which is almost entirely devoid of coal deposits, the benefits that may be derived from this new departure are almost incalculable. Quite apart from the possibility of developing manufactures, the use of cheap power in the rural districts, and more especially in connection with the important pastoral industries that are already the chief source of the country's wealth and commercial prosperity, must prove to be an inestimable boon to the Irish people. It speaks well for the courage and political wisdom of the statesmen who now control the destinies of the country that they decided to initiate this far-reach-ing scheme so soon after Ireland started out on her career as an autonomous State, and it is to be sincerely hoped that no industrial difficulties will long obstruct or delay the completion of this I great enterprise.