THE STATE AS ELECTRICITY SUPPLIER

Dominion, Volume 29, Issue 302, 17 September 1936, Page 10

THE STATE AS ELECTRICITY SUPPLIER

The national hydro-electric plants are a steadily-improving asset, justifying the policy upon which they were founded in anticipation of the country’s development. Altogether the electric supply systems in operation to-day have absorbed more than £33,000,000, of which £13,000,000 represents Government expenditure. State electricity supply has now reached the profit-making stage. The gross revenue for the year ended March 31 last was £4,823,324, and after providing for working costs, interest, sinking fund,. and depreciation charges the net profit is £554,154, which is £104,655 better than the previous year. . * The question now is whether anything can be done to accelerate the progress and prosperity of this valuable enterprise. The position should be carefully examined from time to time in order to check any tendency for administrative costs to rise, and to ensure that the primary aim of the State scheme, cheap electricity for the public, is kept steadily in view. In his statement to Parliament the Minister of Public Works expresses satisfaction with the general condition and progress of the schemes, and remarks that in regard to the cost and availability of electricity New Zealand compares “quite favourably” with other countries. The aim should be to lead other countries, because New Zealand is perfectly endowed by Nature with facilities for the production of hydro-electric power on a large scale at low cost. Mr. Semple considers there are certain aspects of the distribution of electricity, and of the relation between the generating authority and the distributing authorities, that are not “quite perfect.” This is undoubtedly the case. It would be a pity if the people were to be despoiled of some of the benefits of Nature’s admirable provision for the supply of hydro-electricity by defects in the management of the business. The approach of more prosperous, times has given, as Mr. Semple says, “a great stimulus to the electrical industry,” and everywhere there are indications of increasing demands. But progress might be retarded by neglect to perfect the administration of the system. The indications are that reform in this connection will be in the direction of more centralised control of at least the generating plants. Local body reform should also provide opportunity for placing the business of the supply authorities on a more economical and efficient footing.