POWER PLANNING Drastic Impact Of Minor Errors

Press, Volume CIV, Issue 30803, 15 July 1965, Page 16

POWER PLANNING Drastic Impact Of Minor Errors

(Hew Zealand Press Association)

WELLINGTON, July 14.

A warning against any apparently minor errors in plan* ning was included in the annual report of the Electricity Department tabled today in Parliament.

“The prospective development programme is such that in the next year the organisation of the department, particularly the availability of suitable staff, must be carefully con. sidered,” the report said.

What was planned during the next five years would start operating in the 19701980 period. “At this time any apparently minor errors in planning could have far reaching and rather drastic impact on the cost of electricity in the years ahead," the report said. Future hydro-electric projects will cause more widespread effects than have occurred in the past and more information must be released to Ute public, said the Minister of Electricity (Mr Shand)

His statement was a preface to the report Mr Shand said the year ending March 31, 1965. had been one of “signal achievement” in New Zealand's electrical development history. “The Unking of the North and South Island electrical svstems was an engineering triumph of »he highest order ”

The Minister said after the announcement to proceed with the Tongariro project, he had had discussions with most

of the local authorities affected by the project in the area from Tuakau to Taumarunui.

“These discussions clearly showed that future hydroelectric projects will cause more widespread effects than have occurred in the past. “More information during investigation and planning will have to be released so that during these formative stages the public becomes well informed.”

Mr Shand said the report of last year’s power planning committee was accepted in principle by the Government, and all necessary action had been taken except regarding a thermal power station using Kapuni gas as fuel. “Until the possibility of marketing the gas aS a premium fuel is cleared up a decision on this power station has been deferred, but tenders for the plant have been called,” the Minister said. The plans recommended last year provided for a marked improvement over all previous plans in regard to the availability of electrical energy during dry weather periods, Mr Shand said. The Minister said an interesting feature of the year’s financial picture was that for the first time funds to the extent of £7.2 million were drawn from the International Bank for Reconstruction and Development to assist in meeting overseas commitments on the inter-island transmission project.

Mr Shand said from a financial point of view operating results were again satisfactory. An increase of £2,493,000 in revenue and a decrease of £38,000 in operating expenses were partly offset by increases in interest. (£677,000). depreciation (£437,000) and loan redemption £195,000. leaving a balance of revenue of £5,646,000 to assist with the financing of capital works.