INSIDE STORY

Auckland Star, Volume LXXV, Issue 60, 11 March 1944, Page 4

INSIDE STORY

POWER SHORTAGE

MINISTER SPEAKS

(By Telegraph.— Parliamentary Reporter.)

WELLINGTON, Friday,

"Certain individuals and organisations are obtaining a lot of publicity at the present time to ventilate their opinions regarding the power position in New Zealand," said the Minister of Works, Mr. Semple, in an interview to-day. "Let me tell the public the inside story of the present shortage of electrical generating plant, as opposed to this political propaganda being deliberately propagated by a group of militant power boards' officials and by the Power Boards' Association," he continued.

"Way back in 1932 the Economy Commission reported that the Dominion had progressed too rapidly in the matter of hydroelectric development, and expressed the opinion that the establishment of power generating stations might have a detrimental effect on the coal industry and local labour conditions.

'We are definitely of opinion that the present stage of development in the matter of hydro-electric power is sufficient for the needs of the Dominion for many years to come; and, moreover, in view of the uncertainty as to what will prove to be the cheapest form of power development in the future, any move for the commencement of further works, whether by the State or by local authorities, should be strenuously opposed,' is one paragraph of the Commission's report.

Power Boards' Views "Then in 1935, the Power Boards' Association, which is just now so emphatic that the Government has not anticipated or provided against the future by extending its hydroelectric development plants sufficiently, adopted reports stating:

" 'The committee is, therefore, of the opinion that before any further major hydro-electric extensions or new works are undertaken, careful consideration should he given to the more extended use of the existing steam and Diesel plants as peak reducing or auxiliary stations as to the possibility of their economic extension. By this means a relatively great increase in annual costs may be deferred until the load has been built up to such an extent as to warrant further expenditure in hydro-electric works.

" 'From these figures it appears that the necessity for developing an entirely new scheme is remote, but the committee feels that the attention of the Government and supply authorities should be drawn to the advantages of the combined use of hydro and fuel plants. " 'The Departmental schemes Include ample reserve capacity, especially as far as civil engineering works are concerned, to permit of load building on comprehensive lines, and it is the opinion of the committee that some definite inducement should be given to purchasing authorities to increase their individual loads and revenue and thereby also the national revenue.

" 'Due to the development of Waitaki, with its ample capacity for extensions, and witli the further development of Arapuni, the Department will for some time have a supply of surplus power, for which the community is already bearing a large measure of the production costs, and this presents a pressing problem. " 'There is every reason to believe that the development of the Dominion's hydroelectric sources will ultimately be vindicated. There is equal reason, on the grounds just stated, to ensure that every possible use is made of existing fuel plants as a means towards the present development and ultimate justification of large hydro-electric services under New Zealand conditions of load and population.'

Hydro Power Cheapest

"I am sorry to have to quote these paragraphs in extenso, but the public should know and understand that these gentlemen, who set themselves up as critics of my Government's action—and we have tried our very utmost to avoid this shortage by extending present power stations and building new ones—are critics of the past Government," said the Minister. "The unfortunate part of the criticism is that much of it seems to be personal, aimed at the Chief Electrical Engineer, Mr. Kissel, who has logically supported the installation of further hydro plants, because electricity generated in that manner is much cheaper to the consumer than electricity generated by steam. In general terms it may be postulated that the prime cost of installation of steam or hydro plants is the same, but that thereafter the operating cost of steam-generated power is three times as great as water-generated power, since fuel, either coal or oil, and greater maintenance are required.

"Now it is a fact that new generating plant was ordered between 1934 and 1940 as follows: 1934, 43,200 kilowatts; 1936, 20,000; 1938, 83,200; 1940, 90,000; total 236,400 kilowatts. Before ordering this plant the installed capacity of Government hydro plants was 122,600 kilowatts, so that my Government planned during the eight years it has been in office to increase the installed capacity of hydro plant to 360,000 kilowatts, nearly treble what previously existed.

Effect of War Conditions "Up to 1940 our plans were carried out," added the Minister. "Plant to generate 63,200 kilowatts was brought into service, but since that time, due entirely to war conditions, the position has gradually deteriorated; 173,200 kilowatts of plant were on order and this is what has happened to it; 21,600 kilowatts of plant due for service by March 31, 1941, has been held back by reason of war conditions and restrictions imposed in England and has not yet been delivered, though it is hoped it may be in service by March 31, 1945; 21,600 kilowatts of plant due for service by March 31, 1942, has also been held back by war conditions in England, and is not now expected until March 31, 1946. The remaining 20,000 kilowatts of plant clue for service by March 31, 1942, has been installed and is in operation after one year's delay; 20,000 kilowatts of plant due for service by March 31", 1943, is also installed and is in operation after a year s delay; 60,000 kilowatts of Pl a " t , due for service by March 31, 1944, is not expected to be in operation until 1946; 30,000 kilowatts of plant due for service by March 31 1945, is not expected to be in opera: tion until 1947.

ii one in New Zealand can be blamed for ndn-delivery of plant" said the Minister. "We 'have no control over conditions in England Hitler must be blamed for that. Novertneless, the Government has made 1 epeated and urgent representations r, , , Hi S h Commissioner for New Zealand in England to have deliverv expedited, but despite all our representations contract delivery dates have been extended and extended. Actually, for instance, the Arapuni No. 5 generator is still in England though it was due here in 1940 and eight extensions of promised delivery times, totalling 44 months, have been given. Similarly, in another case where delivery was due in July, 1940, parts of the plant have arrived but a major part of it shipped about June, 1942 (two years late), was lost at sea by enemv action, and, though replacement was promised for April last year, it has still not been delivered and our latest advice is that it will be shipped this month. 1

Such delays inevitably occur in wartime, and can be appreciated by the man in the street, but evidently not by those gentlemen who are so brimful of criticism "