POWER DEVELOPMENT.

New Zealand Herald, Volume LXIII, Issue 19412, 21 August 1926, Page 15

POWER DEVELOPMENT.

FOUR YEARS' PROGRAMME. SPENDING £1,000,000 A YEAR. PROFITS ON OLDER SCHEMES. ANOTHER PLANT IN THE SOUTH. [EY TELEGRAPH.—SPECIAL REPORTER.] WELLINGTON. Friday. The year just completed represents the fifteenth since construction work on the department's first hydro-electric development was commenced at Lake Coleridge. The capital expenditure at March 31, ,1916, tho first complete year of supply, was £362,000; at March, 1921, it had grown to £1,072,000; and by March, 1926, to £5,134,000. The annual revenue in 1916 was £8518; in 1921, £66,178; and in 1926, £287,942 Capital expenditure by supply authorities was £200,000 in 1916, £600,000 in 1921, and £6,500,000 in 1926. "The completion of the large works at Arapuni and Waikaremoana, with consequent extensions to transmission lines and sub-stations, and provision of extra plant at Arapuni, will require very heavy expenditure for the next three years," the Minister states. "In addition, the growth of load on the Lake Coleridge system is such that it will apparently bo necessary to make a start with the construction of an additional source of power' in tho South Island, probably within a year. These developments will call for an expenditure of at least £1,000,000 a year for the next four years; and although there is little doubt but that the hydro-electric development to date has been an unqualified success, it is doubtful if the country would bo justified in continuing expenditure for a much longer period at this high rate. This is all the more evident when we remember that for every pound expended by the Government on genera-ting-works, an equal or greater sum has to bo expended both by the distributing supply authority and by the actual consumer before the power can be fully utilised.

Expenditure Cannot Stop. "It is true that in the North Island in particular the Government rate of expenditure can be very considerably re duced after the three main key stations are in operation—there will be extensions to be made from time to time; while in the South Island there will still remain further sources to be developed before we can attain to the ideal of making power available to every one within the Dominion who can be put within reasonably economic distance of the transmission system. We may permit the annual expenditure to be reduced after about four years, but as far as can be seen at present, it cannot be allowed to stop, and must continue at somewhat reduced rate for many years to come." The expenditure last year, including working expenses and maintenance, amounted to £945,533, while the appropriations for the current year tota! £1,371,000, of which £1,284,800 is for capital investment. Details are as follow Vote. Expended. 1926-27. 1925-26. Arapuni scheme . . £848.000 £329,024 Mangaliao scheme— New works . . 170,000 177,493 Working expenses, etc. .. .. 24,000 19,989 Horahora scheme— New works .. 35,000 36,805 Working expenses, etc. . . . 27,850 14,511 Lake Coleridge schemeNew works . . . 180,000 337,826 Working expenses, etc. . . . . 24,150 25,404 Waikaremoana scheme 80,000 ' 466 Investigation of other schemes . . I.SOO 2,307 General expenses .. 200 168 Sinking fund contribution, Horahora and Lake Coleridge schemes 20,000 Less credits-in-aid 40,000 Totals . . .. £1,371,000 £945,533 Development o! Waikaremoana.

Construction works on the various schemes during the year is briefly reviewed by the Minister. Referring to the progress of the Arapuni contract, lie says that no unforeseen difficulties have been met with, and, although it does not appear that the contractors will be able to complete by the specified dateAugust, 1927—they should not be delayed very much beyond that date. Consequent on the rapid growth of load on Mangahao system, a start lias been made on construction work on the main scheme at Waikaremoana. Tenders have been invited for the main items of the plant, which will consist of two units each of 20,000 k.v.a. capacity. Surveys of transmission lines to connect with the Mangahao lines at Napier are almost complete, and are also in hand between Waikaremoana and Gisborne. A programme of work hns been drawn up, by which it is hoped to have this scheme in operation by about the end of June, 1929. The Minister records the granting of a license for a large power development between Lake Manapouri and Doubtful' Sound. This license has been issued to a syndicate of business men, who propose to endeavour to raise capital in the English market to develop this source of power for the manufacture of nitrates. In addition to this, the department is making a survey of the power possibilities in the country between Lakes Te Anau and Manapouri and the western Sounds, not so much with the idea of immediate development for ordinary commercial and industrial requirements, but to enable definite information in regard to these large potential sources of power to be placed on record and published, with a view to attracting outside capital that may 1 be desirous of establishing any special n.dustry requiring large blocks of very cheap power. Operations of Power Boards.

Tribute is paid by the Minister to the energy with which the various power boards are carrying out their schemes of reticulation. He defends them against criticism of their borrowing. "It is, unfortunately, true," he says, "that one or two of the power boards have not been as successful as others or as they might have been, but even these are fulfilling a useful purpose and supplying the general public with power at prices which compare favourably with those charged elsewhere. The increase in the use of electricity in the last few years has been phenomenal, and it would have been nothing short of miraculous if no mistakes had been made in the early days. That so few mistakes were made must surely be taken as an indication of the sound common-sense which has, in the main, governed this question. Such defects as have been made manifest are being rectified from time to time. " The whole question of power board finance and the prospect of success is now carefully reviewed by the Government, and only such boards allowed to proceed v as are considered to have reasonable prospect of success and such as are designed and constructed to fall into the general scheme 'of development decided upon by .tie Government."