Hydro station to go ahead

Press, Volume CXV, Issue 34021, 10 December 1975, Page 2

Hydro station to go ahead

(From Our Own Reporter) GREYMOUTH, December 9. Though some doubts were cast on the adequacy of cash assurances, the West Coast Electric Power Board, at a special meeting today, decided to proceed with a new hydro-electric power station at Dillmanstown.

The National Provident Fund, in a letter, said that it would assist the board in meeting its expenditure on the project. This would be subject to the fund’s having sufficient finance in hand from time to time in relation to its total commitments. “Therefore, as far as it is able, the fund will endeavour to ensure that the works are proceeded with as planned,” its letter said. The Minister of Electricity (Mr Bailey) said in another letter that the Minister of Finance (Mr Tizard) had repeatedly said publicly that no local authority (including electrical supply authorities) would be prevented from undertaking urgent and essential works because of lack of finance.

The board’s chairman (Mr J. A. Beban) said that the consulting engineers had said that the scheme would save New Zealand s2m a year in oil imports—but that was the concern of the Government. “Our prime concern is the benefits to this board and its 9900 consumers,” Mr Beban said. “This scheme is a mighty big project for a small board, which emphasises the need to proceed with caution, and think carefully before we reach irreversible decisions, such as signing contracts. “At this point, I consider that there are insufficient guarantees to enable us to sign contracts,” he said. "We are still short of more than $2.5m to complete the job on present estimates. “We should renew negotiations with the new Administration, and make immediate application to the Loans Board for the balance, so that

we can be assured of finance before we proceed,” Mr Beban said. Mr G. T. Bloomfield said he did not consider that the board would get much more than it had. “If we wait until we have the cash in hand, we will never get the scheme,” he said. “The Government needs the project more than the board; and over its life, it must be a paying proposition.

“This scheme will help the Coast—and it will never be built cheaper.” Mr W. P. Boucher said that with a change of government and a new Minister of Finance, the assurances that the board had received might not hold weight. Mr P. Minehan said that the board “must get things moving.” The longer the board delayed, the more the scheme would cost.