HYDRO-ELECTRICITY.

Otago Witness, Issue 3828, 26 July 1927, Page 31

HYDRO-ELECTRICITY.

EXPANSION IN THE DOMINION. THE POWER BOARDS ACT. WELLINGTON. July 20. lhe Electric Power Boards’ Association opened its annual conference this morning. Over 100 delegates were present as well as representatives of the interested bodies. The Prime Minister and the Minister of Public Works both addressed the. conference. The Prime Minister (Mr Coates) said that he was and could not help being much interested in the work of the. power boards. During his recent trip Home he took the opportunity of seeing for himself the working of some of the world’s great electrical schemes. He, like others, had heard much about the power developed from Niagara Falls. Hs went over this station, and had come to the conclusion that what we were doing in New Zealand compared very favourably with what was being done elsewhere. We were carrying out a scheme of our own which was interesting engineers elsewhere. What we were doing was sound in its conception, and in the best interests of the country’s development. As the amount of power developed and increased the costs would come down, and the cooperation of the cities was looked for in order to reduce the. costs to the country districts. There were, of course, difficulties and possible pitfalls. Small power boards were one of these, and whatever was done must not act as an impediment to the man on the land, for, when all was said and done, farming was our main industry. The Government was thoroughly interested, but it recognised that success would only come if the economic cost was right. The power boards had already done excellent work, and the members hail the satisfaction of knowing that their services were instrumental in initiating an entirely novel scheme.

Mr K. S. Williams, Minister of Public Works, then declared the conference open, lie quoted figures showing the great increase that was taking place each year in the electrical development of the country. The capital expenditure to date m electrical undertakings was approximately £G,250,000 by the Government and £14,500,000 by local bodies. Jhe actual consumorc last yeai- had paid about £2,;j00,000. “The department's share in

making electricity generally available is illustrated by the continuous growth that has taken place in the amount of power supplied by it to local authorities fr»r resale,” continued rhe Minister. “Thus in the year ended March, 191 G. which was the first complete year in which the department supplied power, the maximum load was only l.'iOOkw. In 1919 it was SSOOkw. In 1922 it was 12,5<)0kw. In 1925 it was 21,950 kw, and fo; the year just completed it had risen to 4G,9G()kw. Averaged over that period of 11 years that flic department has been operating there Ims been an average increase o” load •supplied, equal to 43 per cent, per annum. The Minister 'nt on to say that consideration was being given to some proposed amendments to the Power Boards Act which it was hoped to introduce during the present session of Parliament. “The principal clause in the proposed amendment,” ho said, “dcalg with the compulsory provision of a depreciation or reserve fund. It is recognised that with power boards it is necessary in. the early years of operation to incur heavy capital expenditure in anticipation of revenue to be received at a later date, and provision has been made from time to nine allowing the boards to carry forward their losses for a period not exceeding seven years. It is not proposed to interfere with this provision; but it is proposed that, the boards shall be required to establish a depreciation or renewal account which shall be credited with a definite amount each year, and after the seventh year actual payments will be made each year to a fund for this purpose sufficient to provide a reasonable fund for depreciation or renewal purposes and making provision for any deficiency in the account which maj- have accumulated during the first seven years of operation. Detail clauses will deal with, the investment of the funds with commissioners and with the methods of withdrawing amounts required. Other amendments proposed will make provision allowing the boards to establish insurance funds and accident funds to meet possible claims for fire or accident damage.”