Coast search for $400,000

Press, 21 August 1976, Page 21

Coast search for $400,000

Staff Reporter Greymouth. The West Coast Electric Power Board — never the healthiest financial!). —has $400,000 to find from somewhere. Although the Coast might seem to have a superabundance of hydro generating potential, power supply has never been easy. Few consumers well spread out. and frighteningly difficult terrain make reticulation very expensive. The board has taken what has been described as a courageous step, particularly as the decision was made before the recent tariff increase, of

building its own station. It is developing a $6.5M scheme at Dillmarstown, near Kumara.

This move has been commended by Mr R. J. McLeay, a Christchurch consulting engineer with a special interest in power generation.

“This is a vert heavy capital commitment for a board of that size." says Mr McLeay. “It takes a great deal of courage to start something like that, particularly in these inflationary times when costs can be expected to climb, making higher loan repayments necessary.” Now, a possible shortfall of $400,000 in two Dillmanstown hydro scheme loans is worrying the board.

11 was told at its meeting on Monday that the second issue in the hydro development loan of $300,000. closed with a shortfall of $162,000. and it seemed that the third issue would close on >ep tember 30 with a shortfall of $230,000. Public investments tn the two issues realised only about $37,000 and members expressed con cern at this total, accept ing that the National Provident Fund had said that it could not be responsible for fulfilling total loan applications.

“I thought we would have had more local

money.” said Mr G. T. Bloomfield, saying that there was a need to attract local money in view of the national situation. However, with no solution in sight, the matter was deferred for consideration at next month’s meeting.

The board may take another proposal, to enlarge the Turnbull River Station to provide power for South Westland, to the West Coast Regional Development Council.

Members had expressed concern at trying to raise a loan to ' upgrade the Turnbull River station —

the cost is estimated at $300,000 — when faced with the problem of raising finance for Dillmanstown.