HYDRO-ELECTRIC RATES.

King Country Chronicle, Volume XVII, Issue 1730, 26 September 1922, Page 5

HYDRO-ELECTRIC RATES.

MINISTER DEFENDS POOLING. Canterbury members showed by their lively questioning of the Minister of Public Works on Wednesday strong objection to the proposed flat rate charge for State hydroelectricity throughout New Zealand, their contention being that Coleridge might possibly, as it is paying its way, have to bear part of the burden of some remunerative scheme. The matter was first raised by MiMasters (Stratford), who ,asked if the system of accounts for hydroelectricity would follow the same plan as the railways and postal departments, which regarded their charges and capital accounts as one for the whole Dominion, the charge for power being made irrespective of locality, so that a customer in the North Island may obtain current at the same price as a customer in the South Island. The Hon. J. G. Coates declared that there was no secret about the standard rate. It provided for payment of interest and sinking fund, depreciation and working expenses of the State schemes as provided by statute. The present rate was not fixed for all time, as the State would give consumers the benefit of cheaper rates if it made more than would cover the expenses he had indicated. This reply not satisfying Canterbury members, they asked if Coleridge would have to bear the burden of any losses elsewhere. The Minister retorted with a query, "Suppose Mangahao is paying and Coleridge is not?" He declared Coleridge was just moving along, nothing to boast about. It paid working expenses, interest and sinking fund, but not depreciation, though he thought it would eventually pay well, while Christchurch City Council, drawing power from Coleridge, had made a profit of £28,000. The State, in the meantime, had accumulated losses on Coleridge totalling £72,000.