OPUNAKE POWER BOARD

Hawera Star, Volume L, 20 June 1930, Page 6

OPUNAKE POWER BOARD

PROPOSAL TO BORROW £IO,OOO. RATEPAYERS AGREEABLE, Mr G Goodwin, chairman of the Opunake Power Board, .presided over a public meeting held in the Town Ball, Opunake, last- evening for the purpose of explaining the- board’s proposal to raise a loan .of .£IO,OOO. . Briefly addressing the gathering, Mr. Goodwin said it was proposed to raise a loan of £IO,OOO, of which amount the sum of £7,000 was to be devoted to reticulation of areas not at present served witli electric cunent. It was proposed, to take up this amount in instalments as required, and in no case would money be expended unless a profitable return was assured. The installation of a Diesel plant was intended to -absorb the iemaining £3OOO of the loan. The board had thoroughly and exhaustively debated the latter proposition and had come to the conclusion that such installation was the only solution to present-day troubles in regard to shortace of current, one of the principal i causes of which, was. "the annually cur ring shortage; of water at the disposal of the board. The whole matter had been subjected to the consideration of the Public Works Department, whioh body bad strongly advised the board to proceed with the. scheme. In the opinion of the department installation of -a- Diesel plant alone assured 100 per cent, service. ,

One of the audience here questioned the wisdom of consulting the Public Works Department before placing the matter before the ratepayers, the chairman replying that the board had so acted to avoid the necessity of two meetings of the ratepayers. The authorities had to be, consulted in any case. MR. J. S. TOSLAND’S VIEWS. In response to, the chairman's request that individual members of the board should address the meeting on the subject, Mr. J. S. Tosland briefly outlined the early liistory fo the Opuuake power supply to tiie time when the board was first faced with the problem of a shortage of power and raised a loan of £70,1100. A rate was collected in the early stages, but it was soon found necessary to extend operations to the outer area. The demand grew to such an extent that further loans were negotiated. The grand total of loans raised to date was £103,075. Repayment of £44,000 was due in 1932, to meet which the accrued sinking fund was estimated to total £17,000, which would be repaid, leaving £27,000 to be renewed. The present rate of interest was 6i per cent. It was quite probable, however, that a renewal could be effected at a lower rate of interest over a longer time. The sum of £17,000 at 6 per cent, fell duo in 1944; £24,000 at 6 per cent, fell due in 1945, and £16,000 at 5) per cent, was due in 1960.

There was no guarantee of full voltage under the present agreement with the New Plymouth Board for power supply. The voltage regulator, installed at a cost of £750, was useless unless a peak load was coming in. If it were possible for New Plymouth to supply all current required, a new high tension line and transformers would be required, costing, on Mr. T. B. Merson’s (the board’s late engineer) estimate, approximately £IO.OOO to £II,OOO. During the past two years an acute shortage of water had bgen experienced, and although Mangamahoe might be completed by December there 1 was no guarantee of extra current during a drought, as Tariki had repeated-1 ly failed. The demand on the Opuliake system had shown a steady increase and it might be expected to continue to do so, and it was this increasing demand, coupled with the uncertainty of supply, which had led the board to consider the installation of a Diesel plant. The board had also considered the diversion of adjacent streams to supplement the river flow, and a report and estimates on this matter, furnished by Messrs Merson and Vickerman (Wellington), showed that such could be accomplished for between £3OOO and £4OOO. This would give the hoard 50 to 75 per cent, more water, assuming that water rights were obtained over the streams proposed to be tapped, the Mangahume, Waiteika, and Taungatara streams. However, as the board’s generators would be incapable of coping with an increased load, and as the suggested diversions would permit of working to the present maximum, making no provision in the event, of a faulty generator, the board considered a Diesel

engine the best proposition to meet requirements. To show the necessity ior an increase, Mr. Tosland stated that installations to consumers had risen from 1044 in 1928 to 1251 in 1930.-an increase of 207 —a percentage ol 10.114. A.s the load was steadily increasing, and to ensure a fail -source of supply at any period of the year, the board contemplated the installation of_ a —OO h.p. Diesel engine. The necessity for this was obvious when it was considered that, .should one generator fail, the other and the New Plymouth supply could not cope with the load. The remaining generator would be called upon to carry an enormous overload and might also burn out at any time. The supply of bulk power from Waikaremoana in two years’ time, as anticipated, provided no safeguard in the meantime. Large power stations had a habit of developing faults at short notice and this fact made provision of a standby plant indispensable. The estimated cost of the Diesel installation was £3200 and the running costs • and depreciation set off against the cost of outside supply for a stated term would be £65 in favour of the Diesel. To meet the increasing demand and taking tlie cost of Government current at £lO per k.w. into account,, extra current would cost the hoard £750 per annum. EXTENSION OP RETICULATION. In regard to the loan of £7OOO for extensions, Mr. Tosland considered it hardly necessary to go very fully into details. All lands in the area were strictly pledged for all power supply loans,' and whilst a differential rate might he struck, it was an unwritten obligation on the hoard to provide any prospective consumer with current provided he would repay the necessary percentage incumbent upon outlay. It was certainly a hardship to force settlers to instal engines and within a year or two bring the lines to their doors. Though such extensions would not impose any further liability upon anyone “we can at least be generous enough to allow to another that which w© enjoy ourselves.” Messrs J. Trotter, H. Brennan and W. A. Slieat, in taking strong exception to adoption of the board’s proposal, literally inundated the chairman with a flood of argument and figures. Mr G. W. Rogers pointed out that some of the original petitioners for current were still waiting for service. In This opinion the board had “bitten off more than it could' chew,” and further remarked, that had the hoard been satisfied to operate only in the area originally decided upon, there would .be no necessity to now urge the proposed loan. Was it the board’s intention. asked Mr Rogers, to dispense with outside current when the Diesel plant was installed? The chairman paid the board had not so decided. The Diesel plant was to he regarded as a standby against a shortage of water. Mr Brennan said it looked as though the board was asking the ratepayers for an open cheque for £7OOO to spend as the hoard liked'. The chairman explained that the £7OOO for extension of reticulation was to he expended in instalments as required from time to time, hut in no case unless a return of revenue of not less than 18 per cent was assured. Mr Brennan took exception to members -of the hoard interjecting on questions put to the chair, presumably, be maintained, with the object of camouflaging the operations of the board. On the motion of Mr G. Gibson it was unanimously decided that the oroposal to raise a loan of £IO.OOO for the purnoses stated he submitted to the meeting.

NEGATIVE MOTION DEFEATED. The following resolution, moved by Mr ,H. Brennan and seconded by Mr G. W. Rogers, was put to the meeting: “This meeting is opposed to the raising of a loan of £IO,OOO as proposed, on the following grounds: (1) That the Diesel plant, to cost £3OOO, is not required at this juncture in view of the fact that Government power will be available in the very near future; (2) that the board is not warranted in re-

ticulating further areas when it cannot- adequately supply the area already reticulated.” The second portion of the resolution applied to the proposed loan of £7OOO to be used in extending the hoard’s reticulated area. On being put to the meeting the chairman declared the resolution defeated on the voices, when simultaneously Mr G. Gibson rose and moved that the first and' second sections of the resolution should- he separately submitted to the meeting. There was considerable discussion as to whether Mr Gibson’s motion (which was tantamount- to an amendment) could he considered after the chairman’s declaration in regard to Mr Brennan’s motion. Dir Gibson, accordingly, withdrew his motion and the .chairman called for a show of hands in respect of Mr Brennan’s resolution, which was again defeated and the hoard’s pronosal to raise the loan of £IO,OOO was automatically agreed upon. Mr Brennan asked the chairman to note his protest that the show of hands was" taken after a number of the audience had left the hall. On the motion of Mr Brennan a vote of thanks was accorded to the chairman.