ELECTRIC POWER FOR NELSON

Press, Volume LXXII, Issue 21708, 15 February 1936, Page 16

ELECTRIC POWER FOR NELSON

MINISTERIAL ATTITUDE TO

NEW SCHEME

SATISFACTION SOUGH* BY CITY COUNCIL

(sraciiL to ra» - NELSON, February 14. “If the reported statement of the Minister about the Cobb hydro-elec-tric scheme is correct, a grave injustice is being inflicted on residents and ratepayers of this district,” said Cr. S. A. Gibbs at a meeting of the Nelson City Council. “After many years of negotiations, the Cobb river scheme was devised and approved recommended by the Government electrical department, which would provide hydro-electric energy for this neglected end of the island on a price basis comparable with other parte of the Dominion. The proposed scheme, the only feasible one on terms that the district could afford, because of other industrial outlets for its energy, was undertaken by the Hir-'e Pipe Company. . “The Minister is reported to have said that he refused to sign the transfer necessary to allow the work to proceed, and that the Government will no c 'ubt undertake a scheme for Nelson and Marlborough in time. He could not say when this would be. The Ministerial pVomise is no use to Nelson, as our electrical undertaking will be taxed to its utmost in the winter Of 1937, and if this is the last word, we shall have immediately to set about Increasing our plant at a cost of from £20,000 to £25,000, a waste of money and a useless expense, if a hydro-electric system is to be provided. ... “It is difficult to believe in view of his remarks that the Minister can have fully studied the terms of the proposed license, under which the people are in no way deprived of their rights and privileges. If the company undertakes the work, it will pay a substantial siim io the Government for the use of water and other rights and ordinary taxation. The whole undertaking reverts to the Government, free of cost, at the end of 36 years. At any time during the 38 years the Government has the right td* take it over on varying terms quite advantageous to the Dominion. “We have to face the position that the Government’s last offer, based on the Gowan river scheme, required a district guarantee Of £19,000 in the first year, rising to £42,000 in the fifth year, an amount altogether outside the district’s capacity. Under the Cobb scheme the only gaurantee given or required is from the city, of Nelson to the Waimea Electric Pow<ar Board of £7BOO in the first year, rising to £9200 in fifth year. If the Government refuses to allow us to take advantage of this offer, then the Government should undertake the* work and give us a supply on similar terms to those agreed to by the Waimea Electric Power Board and the Hume Pipe Company. “I move that after consultation with a representative of the Hume .Pipe Company, a deputation in conjunction with the Waimea Electric Power Board go to Wellington to interview the Prime Minister to obtsun an undertaking to provide a hydro-electric supply for the district, either by allowing the Hume Pipe Company’s scheme to proceed or by a Government scheme on terms at least as favourable as those offered by the Hume Pipe Company, and within the period stipulated.” Cr. E. R. Neale seconded the motion, which was supported by the May° r (Mr Q. L. Page). The#motion was carried.