Mr Goosman Gives Reasons For Power Policy

Press, Volume C, Issue 29625, 22 September 1961, Page 12

Mr Goosman Gives Reasons For Power Policy

Connecting the power systems of the North and South Islands by the Cook Strait cable to provide sufficient power for New Zealand needs would cost £45.2m. To provide an equivalent amount of power for the North Island from its own resources would cost £Bsm. the Minister of Electricity (Mr Goosman) told 350 delegates and observers at the annual conference of the Electrical Supply Authorities’ Association of New Zealand in Christchurch yesterday. “Connexion of the power systems of the two islands was sound in 1957, and is sound today. Unfortunately, the scheme was departed from, and a very considerable increase in costs will have to be carried as a result,” Mr Goosman said.

In a 30-minute speech, Mr Goosman said: That alternatives to the Cook Strait cable, proposed by the Labour Government in its 1957 White Paper and later, would cost nearly twice as much in capital expenditure as the connexion of the two islands’ power systems.

That the Korokoro gasturbine station near Wellington would be expensive, but would be used only for neak loads and emergencies No power at all was more eostly than any type of power. Benmore Power That without transmission between the two islands Benmore would be “eating its head off” with available power unused. That the only way for the South Island to get cheap electricity from its huge generating schemes was to share costs and accounts with the North Island consumers.

That the Wanganui power scheme as first proposed would have buried railway lines and farm lands under water over a large area. That two firms of worldwide repute had investigated the Cook Strait cable scheme and pronounced it both practicable and economical. That two world firms had

won the main contracts for converter gear, cables, and pylons, and both guaranteed performance for three years after, commissioning. That the presence of large power stations in the South Island would be an inducement for industry to be established there.

That by 1963 another power station must be chosen to come into operation, and that, at present, this could be in eiftier island. That he was not satisfied with the organisation of the electricity industry in New Zealand and something must be done to stabilise and unify its control for the future. Costs Compared Mr Goosman said the 1961 combined committees plan was to complete Benmore by adding four units (£4m), build a new station at Aviemore (£ 15.4 m), build a new station at Kopuriki (£7m), and connect the North and South Islands (£ 18.8 m), a total of £ 45.2 m.

To provide the equivalent amount of power for the North Island from its own sources would have needed a new station on the Kaituna river (£Bm), a new station at Kopuriki (£7m), the whole Tongariro scheme including water from the Upper Wanganui and peak load plant (£6lm). and transmission of this power (£9m), a total of £Bsm. “That was where the change of plan was leading us. To put it plainly, it le-i to almost.doubling the capital expenditure to get the same amount of power—a very unfortunate situation it could have been in the present state of our finances. Between now and 1969 consumers

would have had to pay a total of more than £l2m over and above what is now to be paid." There had been much talk over the bringing of Soutn Island power to the North but he had never beard anyone advocate the separation of the accounts.

“But if anyone advocates the continued separation of the two islands' generating systems, if he wants to be consistent then he must advo-

cate the separation of the accounts.” Mr Goosman said. “The fact of the matter is that the only way the South Island can enjoy the cheapness of the huge power schemes in the South is to share them w’ith the North Island.” “Important Discussion” After thanking members of the association for their cooperation in the past and present, Mr Goosman said he knew they had an important discussion to take part in. “Recent events will make it plain to everyone that something must be done to establish a united and stable policy of control of the electricity industry for the future. I have given much thought to it, and I know that a big majority of you will agree that what has happened in the past must not happen again.”

The vice-president of the association (Mr R. Masters), in proposing a vote of thanks to Mr Goosman, said that there were many who thought, including himself, that there should be "depoliticalisation within the electricity industry.” Goosman, in reply, said: Mr Masters talks of ‘depoliticalisation* and that comes pretty well from an old politician. But he did not practise it much when he was one I don’t know what this conference is going to do: but I know what Stan Goosma i is going to do, and it is not going to rest here.”