THE HYDRO-ELECTRIC SCHEME.

Oamaru Mail, Volume XLIV, Issue 14039, 23 April 1920, Page 3

THE HYDRO-ELECTRIC SCHEME.

To the EuTtor. Sir, —Dealing with the suggestion made by Mr 11. Finch in last night's paper, there is, in my opinion, a great probability of Otago losing the opportunity of" having available within a reasonable period electric current, owing to the financial weakness of the proposed scheme. I desire to give an estimated cost and how it affects the ratepayers. Southland's proposed loan is for £1,500,000. and, allowing for the extensive reticulation required; under the Otago scheme, I suggest an estimate of £2,000,000. This loan must be secured by a rate over the whole district. Interest on this'amount at o£ per cent., with 1 per cent sinking fund, amounts to £130.000 per annum. The petition for the proposed Otago district—' (excluding the Dunedin area) shows an improved ratable value of £16,141,148, which is equivalent to an annual value at 5 per cent-, of £807,057. Interest on the loan, as mentioned above, would equal approximately a. rate of 3s in the £ on the annual value. - On this basis, Waitaki County, Oamaru, and Hampden together would' require to give security for 30 per cent, of the £2,000,000 loan, and if the scheme failed to pay. its way North Otago would be called on to pay Tjp to £39,000 per annum. In all public electric works of any magnitude in New Zealand ordinary working expenses have exceeded the revenue for the first few years, and it is reasonable to assume, that the Otago scheme would have a similar ence, therefore it is probable that- the whole of the (.rate would require to be collected! for a time. >: If my figures are anywhere near l the. mark they confirm the contention of Mr R. Finch, that it is extremely unlikely that a loan proposal would secure a requisite majority of ratepayers' votes; and consequently the opportunity of securing electric power would thus be lost. , According to the Act, if in Oamaru and Waitaki County 25 per cent, of the ratepayers sign the present petition, this will be sufficient to bring this area into the power district-,' There is no provision in the Act allowing any area to withdraw later. I urge that before the district is constituted strong representations should be made to the Dunedin area to. come into the scheme, and make it a success.' I am, etc., R. K. IRELAND. April 23.