CORRESPONDENCE SUGGESTED SALE OF WAIPORI.

Evening Star, Issue 20151, 16 April 1929, Page 8

CORRESPONDENCE

SUGGESTED SALE OF WAIPORI.

TO THE EDITOE. Sir,—l liave a difficulty in believing that iJilr J. J. Marlow is in earnest in his letter to yon ol April 11 with reference to the proposed sale of Waipori, if lie is, then 1 did not unjustly judge him when I stated in my previous letter that air Marlow's case, which he presented in opposition to any sale, was one of the blind leading the blind. .Let me endeavour once again to put the position before Mr Marlow. How any business man—and air Alarlow comes under this category—can possibly have the idea that the Government would relievo the city of over half a million in debentures, representing the investment in the Waipori head works, and alter- ~ wards supply power gratis, is beyond me. The days of miracles —of this sort at any rate —are long past. Dunedin would rightly enough seize such a proposition without hesitation, but what the other parts of the dominion would say can well be surmised. Does Mr Marlow suppose that power from Waipori costs nothing at present? The basis of negotiation (sec town clerk’s report of December o, published in tlm ‘.Star’ of December 6) is that “the contract for a bulk supply of power by the Government lu Lin; City Council is to he based upon the cost at which we could reasonably be expected to generate when the full programme of development (if allowed to proceed) shall have been completed.’’ That is clear enough surely. The City Council will bo required to pay to the Government for power exactly what it is estimated it woukl cost, if extensions at Waipori were continued by the city at estimated expenditure of £4(10,000. The cost of power from Waipori—whether supplied by the City Council or the Government —being the same, with no reduction in revenue, ergo the contribution by the electric department L.i the municipal department could hardly be less—indeed, there is more than a possibility that it might bo more This is tho offer of the Government, gs I gather it from the ‘Star’: (1) To take over Waipori headworks and relieve the city of about £(300,000 indebtedness; and (2) continue to supply power at the price at which the city could expect to generate by retaining the headworks and proceeding with the cosily extensions until 23,000 kilowatts is reached—i.c.. the full capacity ol the Waipori I’ivor. In the town clerk’s report referred to the approximate estimate ol cost of further works necessary to reach this limit is evidently not less than £400,000. Let me point out 1o Air Marlow, therefore, that with the present indebtedness of £600,000 on Waipori, plus £400,(lUO to be spent, there will be about £1,000,000 sunk in Waipori. The full cost of the headworks, however, it the Government buys, is the price to be paid, so the city would receive £600,000 (tho present book value) and the Government would have to also carry the cost of the extensions (£400,000). Mr Marlow’s proposal, however, is that the city should continue to carry the £600,000 already spent on the headworks and incur a further burden of £400.000, presumably to find out from actual experience whether the engineer’s estimates that the works can be completed for this figure arc correct. Kven engineers’ estimates have been known to be too low, T'h° whole ques-

tion for the citizens of Dunedin to consider is whether the Government will offer satisfactory terms for a long enough period. If they (and Mr Marlow) will be patient they will know; what the Government’s offer is. Moreover, it can lie well understood that tho negotiators for the council (Messrs Lewiu, 'Shaddock, and the electrical engineer, Air Henderson) have the interests of Dunedin at heart just as much as Air Marlow, and emit they have knowledge of the matters on which thev are negotiating. I will not be hasty by drawing any comparison here. 41 Air Marlow can now be well assured that it will be no moribund council (as ho alleged would be the ease) which will deal with the sale. If ho is lucky ho may himself have the opportunity of discussing the matter at the City, Council table, but in that event it is. sincerely to be hoped that he discovers more about Waipori than he knows now. Air Alarlow lias given yoni*. readers two of the disadvantages of tlm sale, which in his opinion outweigh the advantages. I have shown in cold print (hat both of tho disadvantage claims are non-existent. Will Air Alarlow let us have the balance of the disadvantages? They will no doubt be found to have ns litttlc foundation in fact as those he lias already put forward. 1/ am deeply interested in Waipori and its wonderful influence on the city of Dunedin. I have devoted more than a little time to discovering the ins and the outs of the proposed sale, and alter what .1. have learnt, if the three gentlemen, named above give it as their considered opinion that Waipori should be sold—and they have already done this, with' certain reservations—they will have my, full support at any rate, because I believe in SICXSE, KOT SIiXIIHKXT, April ]6.