Hydro-Electric Power

Hawke's Bay Tribune, Volume XII, Issue 239, 21 September 1922, Page 5

Hydro-Electric Power

PRICE TO CONSUMERS. DOMINION FLAT RATE. THE GOVERNMENT’S POLICY. (Special to “Tribune.”) Parlt. Bldgs, Sept. 20. Most of the questions asked in the House this aiternoon were addressed to the Minister of Public Works, and were on the subject of charges to be made for hydro-electric power and par ticularly as to whether it was intended to have a flat rate throughout the country. Mr. R. Masters (Stratford) asked the Minister whether it is proposed to adopt the method prevailing in other kindred public services' such as the railways and Post and Telegraph, namely, to charge to one Do minion hydro-electric capital account. Mr. Isitt (Christchurch) said that what Mr. Masters wants to know is whether it is proposed to charge to one dominion account the cost of construction and installation of ah schemes, whether completed or in progress, or projected and to charge to one working and maintenance account all necessary expenditure under that heading, and by way of a set-off to charge a flat rate all over the Do minion for power supplied, irrespective of locality or of varying costs of schemes, so that the consumer anywhere in the North Island may obtain current at the same price as the consumer anywhere in the South Island. The Hon. J. G. Coates said he did not think there was any secret in connection with the attitude of the Department or Government. The position was that standard rates had been issued. It was not to be taken that the Government would stand by those rates all over New Zealand for all time. The Government hoped that as soon as a reduction could be made it would be made. All the Government wished was to cover interest and sinking fund and depreciation. After those charges had been met any profit would be given back to the consumers in the shape of reduced charges. The Leader of the Opposition: Will there be a flat rate? The Hon. Coates: I suppose standard rates can be regarded as flat rates., for they apply to the whole of the Dominion. The term flat rate has not beep used, but I suppose it is right to call it that. The schedule applies to all schemes. It might be possible to reduce the rate owing to the success of the scheme. Mr. G. Witty (Ricfcarton) asked the Minister what would be the position supposing Lake Coleridge had cost £lOO,OOO and was paying for itseff, while another scheme in the North Island costing the same amount was not paying for itself. Mr. Smith (Waimarino): That would not happen in the North Island. Mr. Vernon Reed (Bay of Islands): What about the railway’s costs? Mr. Witty: Never minil about the railway’s costs. Anyway, we lent you money and helped to build them for y°« . . , The Minister: Supposing Mangahao is making a good profit and Lake Coleridge is not? Mr. Witty Well; we don’t ask for anything. The Minister replied that the standard prices must stand for the time being. Mr. Witty: There will be a row about it, I bet. TTie Minister added that where struggling industries wanted block power at cost the Government would help them to get on their feet. The standard rate would not affect Lake Coleridge in the slightest, for it was only just moving. There was nothing to boast about, for. although it yas paying interest and sinking fund it was not meeting depreciation. Members: Oh 1 Oh! Mr. Isitt (Christchurch North): This is very startling information to a great many in the south. He asked whether the flat rate was to override existing contracts. ’Die Minister replied that practically all the Christchurch City Council’s contracts ran out in 1925 or 1927, and the council would then have to pay the standard rate. The position put plainly was that Christchurch -at nresent had accumulated profits of £28.000 to £30,000, while the Government had accumulated losses of £72,000. It was never intended that profit should be made by arty city council. He did not think the standard charges would mean any hardship. Another point was brought out by a question from Mr. Sidey (Dunedin South), who asked for an assurance that the standard rate would have no effect on the Waipori scheme. The Minister replied that Dunedin City Council had a license to produce ana. reticulate, and no Government should interfere with that. The Dunedin Couricil had contemplated further development, and the Government had suggested that the council should expand the scheme further, and that the Government should take a certain supply so it could give the benefit of electricity to centres that were without it. The rates for Government supply would be standard rates for outside the area, but the Government could not possibly interfere with the other part of the scheme.