“UP AGAINST IT.”

Poverty Bay Herald, Volume LI, Issue 16781, 14 July 1925, Page 7

“UP AGAINST IT.”

TARANAKI HYDRO-ELECTRIC / SCHEME. A PROBLEM OF FINANCE. A deput-atjon from the Taranaki Power Board waitod -upon the Prime Minister with a request that Parliament authorise the board to spend its money as was thought necessary on the whole of the work, and not under two separate heads, as stipulated u-nd’er existing arrangements. Mr A. G. Carman, chairman of the board, stated that the original loan authorised for the work was £360,000, of which £IOO,CCO was to be spent on head works and £250,CC0 on reticulation. The hoard: hadf been operating for about fifteen months and now found that they would he short of money in respect of head works. They had under-estimated for that pari ol the scheme. A new estimate had been taken out, which fixed the cost of the head works at £150,0G0, and of the reticulation at £220,009. The hoard asked that power he given to spend the money on the work in general. If they were not allowed to do that it would mean another loan, and the work might be held 1 up in the meantime. The authority requested had been given to the Wairarapa hoard by means of a special clause in the Wash-ing-lip Bill last year. Mr Coates said that they were getting into an extraordinary position with regard to these matters. They found those loans being authorised by the ratepayers for a definite purpose, and then Parliament authorised ft hoard to do something different. The point he had to consider was whether lie should ask Parliament to waive the decision of the ratepayers. He asjeed what the feeling was on the subject in the hoard district. Mr Carman stated that several members of the hoard who represented a wide area were in favor of the proposal submitted by the deputation. “I quite realise that you are up against it,” remarked the Prime Minister, “because the present position yon are in means that the work will probably he held! up, and that will result in adding to the interest charges.” Mr Carman: If we could group the work instead of doing if under two heads we should be all right.

Mr Coates: I quite understand that. The Prime Minister asked Mr Kissel. engineer of the hvdro-electric branch of the Public, Works Department, who was present, what he thought of the position. Mr Kissel replied that, lie did not think it would be in the interests of general economy for the work to he held up. ... The Prime Minister intimated that he would like, to hif.ve the, opinion of the district on the matter. Tn the meantime a clause could he prepared.