THE ARAPUNI SCHEME.

New Zealand Herald, Volume LIX, Issue 18012, 10 February 1922, Page 9

THE ARAPUNI SCHEME.

PROSPECTS OF EARLY START. QUESTION OF A CONTRACT. GOVERNMENT AND BOARD. MAYOR TO INTERVIEW MINISTER. An important report upon tlio Auckland Power Board and proposed Arapuni hydro electric works was submitted to the Citv Council last evening by the Mayor, Mr. J. H. Gunson. This stated that after discussing the provisions of the Power Board Bill in regard to administrative matters, it. was thought advisable that Mr. A. Wyllic, city electrical engineer, should go to Wellington. He accordingly left on February 5 to discuss several questions with the department. I nder clause 55 of the Act the board was empowered to authorise local bodies to carry out reticulation. Tho council was recommended to take no action with regard to that clause. Arapuni a Definite Possibility. One outstanding fact had been apparent—Arapuni could not bo considered to be practicable as far as Auckland was concerned unless the Auckland metropolitan area could take a large "load." The somewhat restricted area of the City Council had made this fundamental requirement impossible in the past. Furthermore, the Government hud never submitted, nor had the council been able .in the past to obtain, any information or quotations for hvdro-electric current from the Government.

Tho recent statements of the Minister for Public Works appeared to have been somewhat misunderstood, as also had the statements of the Prime Minister, for it was clear from negotiations carried cm since August last with the council, and also from information now to'hand in tho renort of the engineers of the Public Works Department (following the recent investigations into the city steam station), that Arapuni. sub ect to agreement with the Auckland Power Board, was a definite possibility foi a:: early commencement.

Consideration of Main Points. The question now resolved itself into the following: —As to the load which •would be required five years hence for the area of the Auckland Power Board and as to what terms could be entered into with the Government for an immediate start with under contract for Auckland to take the whole of the board's requirements irom Arapuni; also as to whether the price to be paid to the Government, plus the cost of changing over and running costs and capital expense of the Auckland station as a standby plant •would be justified. "The answer to this, from a practical point of view, together with what the Government will do from a national standpoint, is the ansrer as to Arapuni," said Mr. Gunson. Proceeding, he said that on August 16, 1921, the Minister for Public Works was asked to definitely have an investigation made into the following points by his engineers: (a) whether a commencement with and equipment of the Arapuni works were justified in view of '.ho financial returns which might reasonably be anticipated •with the benefit of an adequate supply of electrical energy for the province; and (t>) whether the City Council or the Power Board, as the case might be, would be able to do better or be on the same basis or under higher charges in the matter of cost, than generating by steam, as at present. Mayor and Minister to Confer. In response to this, Messrs. Furkert, J Kissel, and Cull (engineers of the Public Works Department) came to Auckland and conducted an extensive investigation into the city station, etc., the material from which had been the subject of consideration. The Mayor had received a copy of a report by Mr. Kissel, dated January 16, 1922, and the following telegram was sent to the Hon. J. G. Coates:—"lf I go to Wellington at an early date can you give me time, and are you prepared to go into the question of ». contract, first, for a Horahora supply as an instalment of Arapuni; second, a contract for supply of Arapuni output as laid down in the report with reservations, with a view of an immediate start and expedition of the Arapuni scheme?" To this the had replied that day as follows: —" I will be glad to use you on the earliest opportunity to di?cuss Auckland electric power supply. A definite guarantee from Auckland to take supply will certainly influence the policy with regard to the commencement of the Arapuni work."

Contract With Government Necessary.

The Mayor said that Mr. Kissel's report appeared to him to establish several leadine points, tho chief of which were: (a) The proposed transmission line from Horahora would only be gone on with by the Government under a contract for the Horahora current with the Auckland Power Board. TheiS would be about 4,000,000 units per annum of tliis available for a nitrht "load." With the enlargement of Horahora that night ' load could be increased to 6,000,000 units per annum. Auckland did not need such a

supply. In addition, with Horahora extended, there would be some 1500 K.W. available for a day "load." While the night " load " was not wanted and would be no use to the board, yet this day load of 1500 K.W. might be, hence the referenco to Horahora in the wire to Mr. Coates. . (b) The Arapuni proposals were now practicable if a satisfactory contract could be made between the Auckland Power Board and the Government. It appeared to devolve upon the City Council, in view of the lmponance of this question, to take op negotiations with a view of passing matter on to the Power Board. The first effi ient instalment of the Anv puni schem" would te 25,000 K.Wi, the whole of which, with necessary reservations in the board's interest, and having regard to the position of other clients supplied from the same source, would need to be contracted for by the Power Board. If tbis could be arranged (and it was imoc-Bible to say whether it couldl or not until it was cone into in terms of his telegram to the Minister and his reply) there was no practical reason whatever why Arapuni should not be started imme iately and the whole business earned to completion as far as such instalment of the wor'-:. as mentioned above, was concerned, with the greatest expedition.

Huntly Proposal Ruled Out. (c) The report of Mr. Kissel definitely established that the steam plant at King's Wharf was better 3ituf.'.ed for 3 stanHby plant than Huntly, said Mr. Gunton. Having regard to this there was nothing to eain by further consideration of the Huntly proposals which bad been gone into most exhaustively. The following was an extract from the report with regard to the Auckland steam station as a standby:—" Even though jxjv. er could be generated at Huntly more cheaply than at King's Wharf once the load factor got much over 30 per cent., yet, in view of the adverse effect of the added capita! charges of the Huntly station when Arapuni power was used, and in view of (fn.-n the Auckland _ Power Board's point of view) the considerably greater value of the King's Wharf plant for standby purposes, I consider that on the basis used in this report the needs of the board would be best served by retaining their steam plant in Auckland. This confirmed the advice which the city electrical engineer gave the council, having repard to the existing position, continued the Mayor. It must be remembered that in the early stages of the undertakes, some years ago. there was neither the demand for t'ne current, nor the capacity of plant to give the ntcesiary load to warrant Hantly being considered.

With regard to the present and proposed extensions to the city station, it was clear that if these had not be'en gone on with the position would have been an impossible one both in regard to the lighting and power interests of the city, as it must bo, even if started •now, another five years before Arapuni current would bo available. It must be emphasised that Arapuni could only now be justified by a large " load." Auckland might bo able to give that " load " now. There whs also the question of what outlet for Arapuni current could be found by tho department in other territory. All this would have to be considered. In conclusion, tho Mayor suggested that if any farther information was desired tho question bo referred to a committee of the whole to meet at an early date with a view of receiving a further roport. Discussion by the Council. The Mayor stated that late that afternoon he had received a t'urther telegram from Mr. Coates asking if he could go to Wellington this week-end to consult with him. There were facts which tho Minister wished to place before the public. In tho meantime he suggested that Mr. Wyllio should remain in Wellington to bo present during their consultation, , Mr. Gunson had replied that he would communicate with Mr. Coates after the meeting of the council. Mr. W r . J. Holdsworth iroved that the report be referred to tho committee of the whole council, and that the Mayor bo authorised to proceed to Wellington to continue the negotiations with tho Minister. Tho Mayor's report was, he considered most valuable and important, Mr. G. It. Hutchinson seconded tho motion Mr. H. N. Bagnall said it seemed the board was being asked for a guarantee, and he thought that was springing a surprise on them. Had local bodies in the south boon asked for similar guarantees? Mr. J. A. C. Allum objected to Auckland being asked for a guarantee. Had tho council any guarantee ■ that the Power Board would carry out the scheme of suburban extensions laid down by the city electrical engineer. Ho also asked whether tho price of current to tho citizens would be satisfactory. He understood certain clauses had been inserted in the Bill fixing the prices. If tho board would give no guarantee to go on with the city'§ schemo_ of extensions ho favoured the council doing its own reticulation. Ho urged the Mayor to try to secure power from Horahora pending the completion of Arapuni. Mr. ,T. Dempsev said he hoped the Mayor, when in Wellington, would give no guarantee. The Mayor: I would not do that. What I would wish to bo empowered Jo do would be to enter into a contract after consulting with Mr. Wyllie. The Power Board could reject if it did not approve of it. Amendment Moved and Lost. Mr. Bloodworth moved as an amendment that the Mayor/ report be amended by inserting a clause to the effect, that the City Council carry out its own reticulation. Mr. Bagnall seconded the amendment. The amendment was lost. Mr. Holdsworth's motion was carried, Messrs. Bloodworth and Allum dissenting. The city valuer, Mr. P. F. Notley, reported that the city ratepayers' rol] for the election of the first board contained 12,615 names.

GOVERNMENT'S POLICY. / AUCKLAND REQUIREMENTS. WAITING FOR POWER BOARD. [BY TELEGRAPH. —SPECIAL REPORTER.] WELLINGTON. Thursday. " In view of the grave concern at the postponement of the commencement of the Arapuni scheme, will the Minister for Public Works make a further statement, and can he say definitely when the Government will start? If the Government has no definite policy, can the local people take the matter into their own hands?"— Such was the text of a question which Mr Clutha Mackenzie (Auckland East) asked tho Minister for Public Works, when the House met to-day. The Hon. J A ,G. Coates said he did not know whether his questioner had read what had been said about the scheme, but if he would read the Public Works Statement carefully, he would find that there was a policy. A caroful study of the statement wc jld give much information. It was known that a large power board was being formed in the Auckland district, including the city, the suburbs, and a great deal of the suburban area. A Bill had been passed constituting this board. It would be the largest local authority in New Zealand by a long way. That board would be the controlling authority for that area. Everything depended upon how much power they would require, and when they would require it. Certain steps had been taken recently in anticipation of the requirements of the board. The question was now being discussed between the authorities in Auckland and himself. When the board was able to say how much power would be required, and when it would be taken, he would be able to say something as to tho time when Arapuni would be gone on with.

PROTEST FROM NGARUAWAHIA.

BREACH OF FAITH ALLEGED,

[BY TELEGRAPH.—OWN CORRESPONDENT.]

NGARUAWAHIA. Thursday At a meeting of the Ngaruawahia Chamber of Commerce the presided moved: " That the chamber protest against the action of the Government in holding up the Arapuni hydro-electric scheme as beiiY* inimical to the progress of Auckland and Taranaki provinces, and urge that Arapuni should be proceeded with 011 the same lines and simultaneously with the Southern schemes. Further, that, as it appears Arapuni power Is necessary to provide cheap smelting for the large deposits of ironsand in Taranaki, it is evident that the big scheme will benefit the whole Dominion. The failure to proceed with Arapuni will materially handicap Northern industries, and Southern industries, cheap power, will compete unfairlv with Northern manufacturers. Further, that the Horahora power station, even with the add:tion of the large unit, 'Till soon prove inadequate, as it is now '-'ery heavily loaded, while only a small portion >f the available load is as yet connected. ' Spesiking to this, Mr. Morris said the Governrrunt was breaking faith with the Auckand Province. To say that financial considerations caused the delay was absurd, as the great bulk of money necessary was not required immediately. He thought every public body in the two prov-ncos should protest and that tho Northern members of Parliament, who had failed badly so far, should bo stiffened np. Other speakers endorsed these remarks, and tho motion wa& carried unanimously.