The Dominion THURSDAY, OCTOBER 19, 1922. THE PROSPECTS OF CHEAP POWER

Dominion, Volume 16, Issue 21, 19 October 1922, Page 6

The Dominion THURSDAY, OCTOBER 19, 1922. THE PROSPECTS OF CHEAP POWER

It is probably well within ■ the facts to say that the financial prospects of the State hydroelectric schemes arevgarded informed quarters with a certain amount of ch The desirability of providing a plentiful supply of chea pawer for industrial and other purposes is, of course as great as it was n nre-war davs Indeed, it is even greater, since sound productive Enterprise is obviously the remedy for the economic troubles the war Ha 3 if however, it is rather an open question whether cheap poU* is likely to be made available by the schemes on which the Government proposes to expend upwards of cle/en millions star ing in a period of something over ten years. j , „ „ Before this enormous addition is made to the sum of £1,638,000 expended un to the end of March last in' hydro-electric development, it h very necessary that the country should be assured that, the total investment is likely to yield an adequate commercial re ™ rn „- Circumstances have changed considerably since M .Pa declared, in 1918, that there was every reason _ that the scheme of hvdro-electric development he had planned for the Noith Island would, prove to be a financial, success. In particular, the former estimates of capital cost have been superseded. To what extent these costs have increased over all ,is not stated in official documents. No doubt however, the scale o increase is fairly indicated by a comparison of such items as th. former and current estimates of the cost of the Mangahao headworks. In his 1918 report, Mr. Parky estimated that these works would cost £438,654. According to the Public Works Statement they are now expected to cost £9b4,000-that is to say, the original est ™ate, as a result of material, plant, and 'wage increases, is more than -dot.b . ng( ,, fhig i ncrcase there is to be set an increase in the cost of other forms of power. Possibly, if he were, reporting to-day Mr. Parry might be able to show that the financial prospects of hydroelectric enterprise are relatively as good as ever. This is not manifest, however, as matters stand, and the position might to be, cleared up before the Dominion is committed to expenditure on the scale Unless it can be ascertained definitely that the total hydroelectric enterprise has every prospect of being commercially successful, a strong case would appear for confining expenditure mean time within the narrowest .possible limits . It would ocrtainlv be inadvisable in that case, for instance, to proceed with the proposed expenditure of of two millions on the Arapuni scheme—an expenditure which could only be justified by the sale of very large quantities of current at commercial rates. In the same conditions, the wisdom of an extended development of the Waikarcmoana scheme would also become exceedingly It has a bearing on the outlook that the Christchurch Tramwavs Board, at present using Lake Coleridge power, is reported to be considering the question of going back to steam Power. This may be only bargaining talk on the part of the board, but the position ought to be cleared up. In his. Statement, the Minister of Public Works mentions that a contract has been negotiated under which the Auckland Electric Power Board will take a supply of at least 20,000 h.p. from If hvdro-elcctrical development on the scale now planned is to be justified, however, it must be shown that there are fair prospects of such contracts being not only made, but renewed, throughout the Dominion, and this at commercial rates. . This question should not be approached from any parochial standpoint. It does not affect the merits of the case that development is well advanced at Lake Coleridge and Mangahao, and has either barely begun or has yet to begin at Arapuni, Waikaremoana, and some of the South Island sources. . If water-power were harnessed at an undue capital cost so that it could not be sold .readily at commercial rates, a burden would he imposed on. the whole body-of taxpayers. Apart from its dead weight, this burden would be most inequitably distributed. It would fall most heavily <?n country residents deriving little benefit from the sale of power at less than cost. ... Uneasy anticipations that , such a position is liable to arise are possibly erroneous and unfounded. In that case the actual prospects of hvdro-electric enterprise ought to be demonstrated by such a citation of evidence as will carry conviction and restore public confidence in this national venture. . \