Govt. Approves Cheaper Power For Industries

Press, Volume CI, Issue 29871, 11 July 1962, Page 12

Govt. Approves Cheaper Power For Industries

(New Zealand Press Association)

WELLINGTON, July 10. The Government has approved cheaper power for selected industry.

Plants which will benefit are those contributing substantially to earning or saving overseas funds.

The power, which will be available either at reduced rates or by granting of water rights, will apply to new development, such as chemical and metallurgical industries, and to others using power in bulk and at a high load factor.

Announcing the scheme today the Minister of Electricity (Mr Goosman) said; •'lt is considered that the existing arrangements for sale of State power to electricity supply authorities, and through them to industry, can deal satisfactorily and efficiently with industry ■in general. But there may be some industries which would absorb large quantities of power and which co-uld not operate competitively unless the power is available at special low rates. It is to these special iridustries that the new policy will apply.” Mr Goosman said cheaper power would apply:— )a) Where electric power was a substantial percentage of the cost of production, or where the quantity of electrical energy absorbed in the product of the industry was so high that small differentials of cost per unit of power were reflected ‘ in significant costs per ton or product in relation to oversees competition.

<b) Where the industry would not otherwise be established or further developed. (c) Where the industry would contribute substan-

tially to earning or saving overseas funds.

<d> Where, in general, the electrical load was practically continuous.

Other conditions being equal, industry should be located as close as possible to power sources. Mr Goosman said. This would save transmission costs.

The actual rates payable by approved industries would be decided by the Government.

Extra provision would be made in future power planning programmes for any additional power required.

“Wonderful News” An easing in power charges could enable Pacific Steel. Ltd., to become more competitive with overseas products. said Mr L. M. Lons-dale-Cooper. general manager of the new £3.85 million scrap steel mil] at Otahuhu. “It sounds wonderful news,” he said. “I would hope it applies to Pacific Steel. We are very heavy power users and are saving overseas funds. We will increase our use as we step up production.

“Cheaper power could significantly affect our costs even if the alleviation is only ■a small amount per unit.”