THE COBB SCHEME

Nelson Evening Mail, Volume LXX, 20 June 1936, Page 6

THE COBB SCHEME

THE Minister of Public Works (the Hon. R. Semple) and the Government are to be congratulated in allowing tlie Cobb hydro electric scheme to proceed. The Minister has attached a condition that he must approve of, the articles of association of the subsidiary company, but neither the Minister nor those concerned consider any difficulty will be experienced on that score. It is merely a right and proper precaution taken by Mr Semple in the public interest. In actual fact there is no real departure by the Government from its policy of State enterprise in permitting this work to proceed by a private company, seeing that the State, as has been the case in all the negotiations. retains the right to take over the works at any time should the need arise, that in the event of any deiault from the conditions of the license the works become the property of the State, and that in any case they revert ic the State after 36 years.

The district is just as well off as if supplied from a Government station in that the price it will pay for energy is the same, and it is better in that no guarantee has to be given, and further that important industries will be established. One immediate advantage will be that the company will instal the standby plant which must be provided under the agreement. This will relieve present uncertainty owing to delayed extensions of Nelson’s power plant, and it will hasten reorganisation of services in the country districts. The city will he saved £16,000 for new plant. This money will have to be spent in providing for reception of bulk supply, but as this work will be necessary ultimately, in any case, the actual saving is represented by power house expenditure. We do not know what the cost of Lhe standby station to the company will be, but it is obvious it is being erected about two years before it need be under the license. The company considers it is good business on its part to do this, for in addition to relieving the city from present concern and possible extensive loss, it will enable the city and district to build up the load and by such means be larger purchasers of hydro electric energy when the Cobb scheme is brought into operation. The City Council and the Power Board will have a very interesting task in extending the uses of electric energy when the new power becomes available. This can be done mainly by making the price more attractive to consumers. Probably considerable alteration will be made in the tariff. The objective in all Government schemes is to provide energy at the lowest possible rate. It will be for the City Council to do the same. Preparation for capital expenditure on generating plant will not be necessary, and there will doubtless be considerable reduction in charges when the Btandby plant is installed. The City Council and the Power Board are deserving of the thanks of the community for the important part played in bringing the negotiations to the present very satisfactory stage.