Wairua Falls Power Scheme.

Northern Advocate, 15 February 1912, Page 5

Wairua Falls Power Scheme.

CONTROL OFFERED TO BOROUGH CCUKCIL.

GOVERNMENT DECLINE TO

UNDERTAKE IT

His Worship the Mayor, Mr T. H. Steadman, in reply to numerous inquiries made by the Borough Council to ascertain Government's intentions in regard to the carrying out of the Wairua Falls hydro-electric power scheme, received the following letter this morning from the Hon. R. McKenzie, Minister of Public Works-— £* "With further reference to your letter of the 16th ultimo dealing with the Wairua Falls Power Scheme, I have now the honor to state that the matter has been carefully considered and Government has decided that it will not itself undertake this scheme, but if your Council elects to do so, and.will formulate an application conforming with the requirements of the public notification enclosed a license will be issued in terms of Section 5 of the Public Works Amendment Act, 1908, authorising your Council to use the water for motive power purposes. It will also be necessary to issue a license in terms of Section 2 of the Public Works Amendment Act, -1911, to authorise the construction and use of tlectric lines. An application should be made for this license and ■ the requirements of the accompanying notification

should also bo complied with."

The notification enclosed dealt with the legal formalities which it would be necessary to comply with.

The Mayor has wired to the Minister asking fo.- copies of all reports dealing with the scheme, but these will not be to hand at the special meeting of the Eorough Council which Will be held to-morrow morning to discuss the situation.

According 'x> Mr Cooke's report the total revenue required to make the proposed scheme payable would be £6600 per annum, which amount ■would cover all working expenses, sinking fund and interest. Mr Steadman stated 'hat if the Borough did the right thing and decided to carry the scheme into effect, it would be necessary to raise a loan of about £45,000, but as one company had already guarantee*! to take £6000 worth of power a year, and the Government report stated that the cost of maintenance and the sinking fund would be only £6600, the ratepayers would only be called upon to account for £600 per year, and the Mayor expressed firm conviction that power worth far more than that amount could be easily disposed of to other consumers. In fact, there was one company which could use it, and if they did so, two companies would be taking all the power necessary to make the revenue equal to the working expenses, and all other power supplied would mean a profit to the liorough.

If the full power were taken up, it could be supplied to consumers at £5.07 per horse power per arnum or T l4d per h.p. per hour. If only 20 p.c. available power was taken up the cost would be £20 ncr h.p. per year or .56d >>er h.p. per hour. Those figures had been abstracted from the Government rej/ort, and were consequently reliable.

/ Mr Steadma.n considered that the Council and I!ie ratepayers had been given the opportunity to undertake what would certainly greatly benefit the district and do a great deal towards ensuring- the stability of the Borough.