STATE POWER PLANTS

Press, Volume LXXVII, Issue 23401, 7 August 1941, Page 5

STATE POWER PLANTS

Better Revenue Return OPERATIONS FOR 1940-41 (P.R.) WELLINGTON, August 6. State power schemes operated by the Public Works- Department gave a better return of revenue, based on the capital involved, during the last financial year. This is shown in the annual Public Works Statement, presented to the House of Representatives by the Minister for Public Works (the Hon. H. T. Armstrong). War demands have greatly increased the call for increased power supply, the statement points out. but so far drastic conservation measures hgve not been necessary. “All generating stations have operated smoothly during the year, and the financial results of operations have again been very satisfactory,” the Minister said. "After paying net operating expenses the revenue for the year gave a return of 9.07 per cent, on the average capital in operation, as compared with 8.7' per cent, for last financial year. The development of secondary industries made necessary by the war has been a factor in increasing the demand in both islands, and the units generated in Government generating stations and Governmentcontrolled stations showed an increase over the previous year of 13.90 per cent, in the North Island and 13.41 per cent, in the South Island. Amending legislation passed last year rendered the, electric supply account liable for payment of taxes, and the sum of £330,049 was accordingly paid for income tax, national security tax, and social security charge. Control Over Supply

“During the year it has been found necessary to call on all North Island electric supply authorities which are dependent on the Government hydroelectric generating stations to exercise a strict control over the increasing electrical demand in their respective areas. The response so far has enabled the Public Works Department to postpone the implementing of any arbitrary scheme, for rationing of supplies, which is the only alternative and one which it is desired to avoid if possible. Several expedients have been adopted by supply authorities in general to tide over the present difficulties, which, however, cannot be disposed of until delivery of additional generating plant is obtained from overseas; but it is satisfactory to record that up to the present electric supply authorities have not found it necessary to introduce any measures of a drastic nature. The legislation extending daylight saving throughout the year has proved most beneficial in alleviating the position in the generating stations.” Describing the operating results in the South Island system, the statement adds;

“The plants at Lake Coleridge, Waitaki, Monowai, and Arnold river have also been operated- successfully. The year’s operations resulted as follows; Capital investment at end of year, £7,289,053; revenue, £678,813; operating expenses, £173,289; balance. £505.524.

“The balance has been used in payment of £254,069 for interest, £51,517 for social security charge, national security and income taxes, £73,711 to the depreciation reserve, and £126,227 to the sinking fund. The various reserve accounts established in connexion with this scheme show that £813,288 has been paid to the depreciation reserve, £543,856 to sinking fund, and £86,766 to reserve fund. There is still a deficiency of £214,654, as against the statutory requirements of sinking fund. “The general position to date is that the electric supply account has been able to meet all operating and interest charges, has provided the statutory requirement of £1,925,921 for depreciation, and in - addition, has provided £1,852,807 towards the statutory sinking fund requirement of £2,067,461. In addition, £390,724 has been paid to the reserve fund from profits from time to time. In other words, tlffe electric supply system as a whole has paid all operating and interest charges and provided £4,169,452 in reserves, of which £1,538,178 has already been utilised for the paying-off of loans which formed part of the original capital. There are, howeveri, still to be met arrears of sinking funds amounting to £214,654."

DEVELOPMENT OP SMALL FARMS

160,000 ACRES CONTROLLED BY BOARD

(P.R.) WELLINGTON, August 6. At the end of the last financial year land under the control of the Small Farms Board, acquired for settlement under the Small Farms Act, reached a new total of 160,610 acres. During the year the board took over an additional 19,100 acres, according to figures given in the annual Public Works Statement.

The statement says that the Lands and Survey Department, operating through the Small Farms Board, continued with the development and farming of the many areas acquired for settlement under the Small Farms Act, 1932-33, and, in addition, took over ,a further 19,100 acres. At March 31, the area under the board’s control totalled 160,610 acres.

The expenditure for the year on improven\pnts (wages and materials), stock, and chattels totalled £572,562, and the credits-in-aid were £258,553. The good progress made with the development of the older blocks resulted in a change to routine farming, and made possible the release without replacement of a considerable number of workmen. At the beginning of the year the number of men employed wps 1101, but this was gradually reduced to 721 at March 31. A decision had been made by the Government to finance soldier settlement from this vote, and the necessary statutory provisions were embodied in the Small Farms Amendment Act, 1940.

LAND CLEARING BY MACHINES

ACTIVITIES OF PUBLIC WORKS SCHEME

(P.R.) WELLINGTON. August 6,

Ten thousand acres of land were cleared of stumps and growth by the Public W T orks Department, using its new land-clearing machines, in the year 1940-41, according to the annual statement of the department. The statement says:—“ The scheme initiated by my predecessor in office whereby th. department’s heavy machinery was hired to farmers for clearing land of stumps, logs, and second growth has been maintained with satisfactory results. The cost of bringing such land into cultivation by methods formerly employed was so uneconomic that many areas could only have remained indefinitely as semi-waste land. It is now evident that the use of machinery for stumping, logging, clearing, ploughing, etc., has enabled many hundreds of acres of this land to be brought into early production at a figure which the farmer has been able to finance without difficulty. During the year, 10,000 acres of land were cleared of stumps and growth, 3000 acres were ploughed and cultivated, and 70 miles of internal farm roads or tracks were formed under the land-clearing scheme.”