COBB SCHEME

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

COBB SCHEME

STANDBY PLANT TO’ BE INSTALLED IMMEDIATELY ON MINISTER’S FINAL APPROVAL TO TIDE OVER CITY AND DISTRICT * UNTIL MAJOR WORK IS COMPLETED Yesterday afternoon Mr W. T. Strand of the Hume Pipe Company and Mr E. K. S. Hamilton of Hamilton and Hamilton, brokers of the Subsidi- j ary Company to be formed to carry : out the Cobb scheme met the chairman of the Waimea Electric Power Board. Mr F. W. Greenslade, and available members of the Nelson City Council and informed them that the company would be prepared to proceed first with the installation of the standby plant that had to be provided in connection with the major scheme, in order that the present difficulties facing the city and district would be speedily removed.. SUBSIDIARY COMPANY Mr Hamilton, in an interview with a representative of “The Mail,” said that in accordance with the requirements of the Hon. R. Semple (Minister of Public Works) the articles of association of the subsidiary company must be submitted to him for approval, and this would be done about the end of next week. As the Minister had himself indicated, no difficulty was anticipated in this matter. It was proposed to form a company with a capital of £550,000, partly in shares and partly in debentures which was considered to be ample for the purpose. Mr Strand said that whereas it was previously thought English capital would be used, the proposal now was to have a New Zealand company, with control retained in New Zealand. TO BUILD UP THE LOAD

The immediate offer that was being made to the district, said Mr Strand, was for the purpose of assisting the district to build up the load. The company would recoup itself from the larger purchases of energy that would be made immediately the hydro scheme came into operation. If they waited for the scheme it would take some two years for the district to increase the load to any extent. If they could assist Nelson to use more current sooner, so much the better it would be for the company. That was why the company felt it could afford, without cost to the city or district, to put in the standby plant immediately It had to be'installed in any case. If it were installed at once it would remove the danger of any threatened shortage, and, stated above, would help materially to increase the load. Details as to price had not been worked out, but it could be taken for granted that a reduction in present costs in both city and district should be possible.

REDUCTION IN PRICE The standby plant which will be Diesel will bo erected in the Stoke area and will supply both city and country as required. Energy will be sold to the Power Board which in turn will sell to the city, according to its requirements. Mr Strand said the standby would, he hoped, be installed in eight months’ time from the date of the Minister’s approval. This at once removes the necessity for the City to spend from £16,000 to £20,000 on extensions to its present plant and this money will be available for costs involved in receiving bulk supply which will have to be incurred in any case. Both Mr Strand and Mr Hamilton stressed the hope that every effort would be made by the Power Board and the City Council to increase the load once ample power was available. There was scope for extension in many directions and it would be for the bodies concerned to cater for this in every possible way. WAIMEA POWER BOARD The Waimea Electric Power Board will probably find it advisable to proceed with its major reticulation proposals without -delay. To make extensions to the present system which would be scrapped in two or three years’ time would obviously be uneconomic. Many country residents are anxiously awaiting the time when they may enjoy and profit by electric energy, and doubtless every effort v/iii be made to meet their requirements as speedily as possible. COBB SCHEME As soon as the company was registered it would be in a position to act. Tenders were alreaay in for the roadway to the power station site and much work had been done on the plans, and there was every reason to believe the work would be completed well within the two years from the time the Minister expressed his approval and allowed the company to proceed. It will be remembered that under the agreement the company has the right to sell direct to large consumers (over 300 k.v.a. per annum). This is for the encouragement of industries. Already in the district are the Golden Bay Cement Works which are likely to be steadily increasing consumers. ASBESTOS FIFLDS

Mr Strand spoke also of the development of the asbestos area. Extensive prospecting had been carried out during the past three months by the Hume Pipe Company and all the indications were most gratifying and warranted the establishment of a big industry which without ample power it would be impossible to carry out. There was no doubt, he said, that asbestos goods would be made in the district. It was now found that the use of asbestos in pipes for water, sewage, etc., was most important as a preventive of corrosion and deterioration and the effects of electricity on pipes in city streets. Given cheap power there v as in the district all the veauirements for a very important industry. There were not many asbestos deposits in the world—Rhodesia, Canada,

Russia, and the United States mainly. The British Empire had only Rhodesia and Canada for supply at present, and the Nelson deposits would be particularly well placed by reason of cement and cheap power available. CHEMICAL INDUSTRIES It is also understood that provision will be made for the establishment of certain chemical industries and some °f them will be of particular value to New Zealand.