STABILITY OF ARAPUNI

New Zealand Herald, Volume LXIX, Issue 21325, 28 October 1932, Page 13

STABILITY OF ARAPUNI

MINISTER'S ASSURANCE COST AND REVENUE . FULL INQUIRY INVITED [by telegraph—special reporter] WELLINGTON, Thursday A reassuring statement regarding' the stability of the Arapuni hydro-electric works was made by the acting-Minister of Public Works, Hon. C. E. Macmillan, when speaking in tho Budget debate, in the House of Representatives late this evening. He described as absurd statements that the. works were constructed on a volcanic ash-heap and said that all reasonable precautions were taken by the department in selecting the site. He was satisfied that New Zealand had a good asset in Arapuni. Explaining that he was anticipating in some respects information to be given in the Public Works Statement, the Minister said that the capital cost of the Arapuni scheme worked out at £32.5 per horse power. That figure included interest during construction up to March 31 last. When Arapuni was extended to its ultimate capacity of 160,000 horse power it was estimated that the cost would work out at £21.2 per horse power. The average of all New Zealand power plants, fuel and water, was £39.7 per horse power. Earnings During Year " The Government power schemes in operation to last March earned 7.28 per cent over the net operating expenses for the year," said the Minister. " In other words, after allowing for. depreciation, namely £103,092, they made a profit of £37,000. During the year the bulk of capital on Arapuni was considered as being not in operation and interest thereon as being capitalised. Since Arapuni went into operation again in April it has earned, after paying 'the net operating expenses, 6.75 per cent as at August 31," Mr. Macmillan continued that in a desire to belittle the Government and officers of the Public Works Department somt» members of the Opposition had used alarming and extravagant statements about Arapuni. He himself had to stop the screening of a certain film. His attention had been called to the film in which there was a picture of a burst dam in some other part of the world, and underneath was a postscript: "This is what is likely to happen at Arapuni." Steps had been taken to have the postscript withdrawn. The Leader of the Opposition, Mr. H. E. Holland: You don't blame us for the film, do you ? The Minister: These things have to start somewhere, and it is certainly not on account of any statements that have been made from the Government benches. The No. 1 Unit The Minister mentioned, incidentally, that opinions had differed as to whether No. 1 unit at Arapuni was out of balance or whether the foundations were insecure. He said that engineering opinion was that the unit was out of balance. "There is nothing to be alarmed at at Arapuni," he continued. "If the rupture had not been stopped there might have been cause for alarm. The department is justified in resisting prejudiced statements by people who have not given the subject full investigation. "I invite any members to come to my office, when officers of the department will be only too pleased to explain the whole position. They invite any investigation and criticism, and they say that the cause of tho trouble is not of such a nature as to cause any alarm regarding the stability of the scheme."