WAIRUA FALLS POWER SCHEME.

Northern Advocate, 16 February 1912, Page 5

WAIRUA FALLS POWER SCHEME.

BOROUGH COUNCIL CONTROL.

FORMAL APPLICATION MADE

Following upon the receipt by the Mayor of the letter from the Hou. R. McKenzie, Minister of Public Works, stating that Government had given up the idea of itself carrying out the .Wairua Falls Hydro-electric power scheme, and suggesting j that the Borough Council should make application for control of the scheme, a special meeting of the Borough Council was held ir the Council Chamber this morning, ar which the Mayor and Crs. Weaver, Mann, Dent, Harrison and Chapman were present.

The Mayor read the letter and the attached conditions under which forxnal application could be made. He assured the Councillors that should they decide to carry on the scheme, he would be able to dispose of a certain amount'of the power, which was large enough to ensure remuneration to the Council, and if they decided to take further steps, tben he would ask them tc make another resolution fixing the sale of a certain percentage at a fixed price to a company who wished to secure it. His Worship pointed out tlttit there was no risk or expense attached to a preliminary application, Which he considered should be made immediately.

Cγ. Harrison moved as a first step in the matter, that formal application Ibe forwarded to Government for the tight for the Eorough Council to utilise the Wairua Falls for the purposes 01 generating electric light and power.

Cγ. Weaver, speaking to the motion, which was seconded by Cr. Dent, said that the offer under discussion was the best one which Whangarei had ever had to advance the value of the district, and the matter must not be allowed to lag. At one time Government would not hear of Whangarei having the power, but it now seemed that they had left the matter of the utilisation of the power in the Council's hands.

Cγ. Harrison's motion was carried, and the Mayor then asked the Council whether they would be willing, in the event of the application being authorised, to n>; a price for the company, who were willing: to use 60 per cent, of the available power. He explained the position by means of extracts from official reports which had been made on the Falls. The working expenses for a scheme providing for the generation of 1200 h.p. had been estimated at £6608, and the power could be delivered in Whangarei at .£5.17 per h.p. per year. Taking Mr Cooke's report, and allowing that the scheme would cost £50.000, that the •depreciation would be 5 per cent, and the interest 5 per cent., there would cnly be an annual expenditure of £5000. added to which would be the v.-orking expenses, which the Mayor jconsidered would be well within £2000, giving at the outside a cost of maintenance and production of £7000 per annum.

Mr Stcadman further explained that the company, which wished to take 60 per cent, of the power at a fixed price had not yet been formed, but vould be so shortly and if th»y carried out their proposals, the sober"-' would fee placed on a sound financial basis as far as the Council was concerned. He was perfectly certain that £10 would he a safe fixed price.

Cγ. Weaver strongly opposed the idea of fixing a price on the grounds that it was bad business. The Council could only give an indication of the cost, which would depend upon the cost of the installation of the plant,

If the Council required the people - to estimate the power they would require, then Cr. Harrison pointed out that it would be necessary to fix upon a maximum price for power for -iwo or three years. \ Cr. TTarrisrin further moved that Hiose interested in the formation of the Cement Company be informed that Hie Council, in the event of their takine un the installation of the Wairua. Falls power scheme, would be willina- to sell 60 por cent at. a price lo be fixed later, and pointed out that ;i ripfinil-p nrif.e would have to bo submitted before contracts could be made -with nr-ospective consumers. Cr Mnrm seconded the motxm, which was carried. The Mayor has received word from the Hon. R. ATcKenzie that a precis of (no various reports bearin.j on the scheme would be forwarded.