WATER FROM WAIKATO

New Zealand Herald, Volume LXX, Issue 21616, 7 October 1933, Page 14

WATER FROM WAIKATO

PRIVATE COMPANY'S PLAN

DETAILS OF THE SCHEME LARGE AREA INVOLVED Details of tho scheme tinder which the Waikato Water Supply Company, Limited, proposes to draw water from tho Waikato River and to build reservoirs and a pipe lino for tho purpose of supplying water to local bodies in the Auckland metropolitan area, as well as to local bodies and individual consumers along the courso of tho pipe line, were announced yesterday. The company has lodged a private bill for the consideration of Parliament and will have to await the fate of this measure before 1 it can proceed with any part of its scheme. It is stated, however, that the company confidently anticipates it will be in a position to commence supplying to any part of its prospective area approximately two years after the passing of tho private Act. It is proposed to draw the water from tho Waikato River at a point three to four miles below Tuakau and to pump it to a supply reservoir about three miles from the river. The pipe lino is to be of 36in. diameter concrete-lined steel pipes, and tho water will be carried by gravitation to a reservoir on One' Tree Hill, from which all the suburban areas desiring water will be supplied. The water for the North Shore boroughs is to be pumped to a high reservoir ,on One Treo Hill, from which it will gravitate by a smaller main to tho North Shore district. It is also proposed that all boroughs and districts along the lino of route will bo served from tho main. Supply and Quality According to tho company's engineer'ing advice the minimum flow of the river at Mercer is at least _ 5000 million gallons daily, and _it is stated tho maximum quantity of water over likely to bo drawn by the company would have no adverse cfl'cct on Hie navigation of the river. Jt is further stated that there are no engineering difficulties in tho way of giving effect to tho scheme and that the quality of the water is unquestionable. It will be filtered and chlorinated and will comply with tho requirements of the Public Health Department. It is pointed out tnat the areas which could be supplied by the company are the four North Shore boroughs, the boroughs of Mount Eden, Mount Albert, Newmarket, One Treo Hill and Onehunga, tho Mount Roskill road district, and tho town district of Ellerslio and the district between Mercer and tho metropolitan area. It would also bo practicable to supply tho City of Auckland. It is claimed that an important factor would be the advantageous price to the consumer. Ine price would be based on the company s total output, the maximum price per 1000 gallons being Is on a total output not exceeding 5,000,000 gallons per 24 hours and the minimum 5Jd on a total output exceeding 15,000,000 gallons a clay. Scale ot Charges The following table, based on total daily output, shows the scale of proposed charges: — Million „.llo». S'SC Not .XCCCdiBt f.V. .. •• IJj 5 t" f ' orf 7 to R 7l(1 8 to 0 'I? 9 to 10 fi ,j 10 to II giS U to 13 ef u!° ■' " :: " 14 to la cij 15 and over . *

It is stated the amount estimated to cover the costs of construction and all preliminary and incidental expenses is approximately £BOO,OOO. Subject to tho passing of the Act and to tho formal completion of contracts witn the local authorities which have intimated their willingness to take water from the company, the necessary sum is available in London. It is estimated that about £300,000 will be ox landed in wages, and that a further £lo(),000 will be paid for materials manufactured or purchased in the Dominion. Payment of Dividends

Provision is made in the bill limiting the combined dividends and de.benture interest to a maximum of 7 per cent per annum on the capital expended by the company. If the pirufits from water, available for distribution, exceed this amount, the balance is to bo applied in reduction of charges for water. No financial risk or liability of any kind is imposed on the Government or on any local authority for any contribution, grant, subsidy or by the levying of any rate. When the company has entered into contracts with three local bodies for the supply of water tho local bodies are to be entitled to appoint a director of the company. Local bodies purchasing water from the company may combine to purchase the company's waterworks. Provision is also ma dp giving other local authorities in the company's district, including the Auckland City Council, the right to join in such purchase, whether or not they purchase water from the company. Eight of Purchase The right to purchase the undertaking may be exercised at the end of ten veurs from the date of supply and at five-year intervals thereafter. Tho date of supply is defined in the bill as March 31 after the expiration of two years from tho first proclamation authorising the company to acquire land for the purpose of its waterworks. The price to be paid is the capital cost, less the accumulated sinking funds. If for the first ten years after tho date of supply tho company has not declared dividends equ%l to 7 per cent the deficiency is to bo paid to the company out of the sinking fund so far as the fund will extend. The company is to establish ft sinking fund and is to pay not less than 1 per cent per annum on the capital cost to the fund before making any distribution of profits to its shareholders. Tho company seeks under the bill to take powers to acquire land for the purposes of its under-taking and to open up streets for the laying of mains, including the city of Auckland, the counties of Manukau, Waitemata and Franklin, 'and the boroughs, town districts and road districts in tho area over which it proposes to operate. It also proposes to take powers to place pipe lines along the bed of the Waitemata and Manukau Harbours subject to the satisfaction of the Auckland Harbour Board.