New Industry May Be Begun In South Island

Press, Volume XCVIII, Issue 28823, 18 February 1959, Page 14

New Industry May Be Begun In South Island

(From Our Own Reporter) WELLINGTON, February 17. That an overseas company be given permission by the Government to construct its own hydroelectric undertaking in the South Island as a means of supplying power for a large electro-chemical industry is believed to be one of the most important suggestions made at a meeting today between a Christchurch. deputation and the Minister of State

Electricity (Mr Watt). The deputation, which consisted of Mr J. Rdy Smith, president of the Canterbury Chamber of Commerce, Mr E. G. Beckett, public relations officer for the Canterbury Progress League. Mr E. F. Ward, of that league, and Dr. T. Hagyard,- of the engineer-, ing department of Canterbury University, was introduced by the member of Parliament for Riccarton. (Mr M. A. Connelly). Members of the deputation sought from Mr Watt the fixing of a unit price at which power used directly in commercial processes such as electro-chemistry could be supplied. Alternatively a formula was asked for by which a company -.would pay an amount equal to what it would pay a unit if it had to construct and operate its own hydroelectric station.

State Monopoly It was mentioned that the Government had a virtual monopoly of power sources in New Zealand. Mr Watt said that he would be interested to see a concrete proposition put forward. While it was true that Hip Government held a monopoly of power sources, it was “not beyond the -bounds of possibility” that the Government, if hi possession of all the facts, might give a company the right to develop a hydro-electric power system for its own commercial use.

Members of the deputation undertook to study this possibility, and to return to Mr Watt with the figures involved. “I am interested -in all three propositions put forward during our discussions,!* said Mr Watt tonight. “Naturally, however, we cannot make a decision on any one of them until we, know tietails of the proposition involved, such as. the number of people concerned, the amount of

power needled, and the quantities ot rare materials which can be produced here by this method. ' ‘The two proposals , put forward by the deputation did not complete theposition, I thought. There is a distinct possibility that the Government might consider favourably the release of a power source to a company the intention of which was to use the power, with New Zealand ingredients and New Zealand labour, to prodpee material we now have to import.” Effects on Imports jitter seeing Mr Watt, members of the deputation spent some time with Messrs J. O. Lewin and G. Datson, of the Department of Industries and Commerce. It Was stated during these discussions that an electro-chemical industry could reduce imports.' and could produce goods for the export market. The effect of a strong South Island-based industry of this type was emphasised. According to population growth figures, it Iras stated, New Zealanders would require the provision of 20,000 More job* yeaHy for . the next 10 years. An electro-chemical industry would provide the basts on which such a demand, would grow.

It was promised on behalf of t*e department that the proposition would be examined and details prepared showing requirements and potentialities. Members of the deputation are returning to Christchurch tonight.