WAIPORI POWERWORKS.

Press, Volume LXV, Issue 19734, 26 September 1929, Page 11

WAIPORI POWERWORKS.

NOT TO BE SOLD TO GOVERNMENT. [THE FBEBS Special Service.] - DUNEDIN, September 25. The negotiations which have been proceeding for some time with respect to the sale of the headwords of Waipori Jrydro-electric station to the Government were terminated abruptly to-night, when a full meeting of the City Council decided that the Government's terms were unacceptable. The electric power and lighting committee of the Council detailed the progress of the negotiations and summarised the Government's offer as follows :

(1) The State to pay the Council the sum of £531,845 together with the capital expended by the Council on the headworks during the present financial year. , (2) Power thereafter to be purchased by the corporation from the Departs ment in bulk at £4 16s per kilowatt delivered, this price to be payable in respect to only fhe first 32,000 kilowatts of maximum demand.

The committee reported that it did not approve of the terms proposed by the Government, for bulk power at the price named was higher than it was costing the Council to generate power at present and higher, too. than the Council might reasonably expect to generate it in the future. In view of this fact, the committee recommended that the negotiations be abandoned with a view to proceeding forthwith with the development of the station on lines necessary to ensure the maximum economic capacity of the river, namely 32.000 kilowatts.

The Council unanimously adopted the committee's report.