BACKBLOCKS POWER

Poverty Bay Herald, Volume LXIV, Issue 19337, 29 May 1937, Page 4

BACKBLOCKS POWER

LINE EXTENSION COSTS MINISTER A PPROACTIED PROJECTS ANTICIPATED Deputations which waited on the Minister of Public Works, the Hon. R. Semple, in Gisborne to-day relative to the supply of electrical power to the Coast and to backblocks areas, found little need to go into details on the proposals they laid before Mr. Semple. The Minister was able to anticipate their requests on more than one point, and the spokesman of one group of settlers stated that. Mr. Semple had put their case much more clearly than they could have done for themselves.

The first deputation heard in regard to electric-power was from the Poverty Bay Power Board, which had two requests to make. Mr. F. R. Ball, chairman of the board, stated that in view of the Minister's statements on the Coast, he did not think it necessary to go into detail on the first matter, (hat of securing validation of any expense the board might' enter upon in connection with the load survey to the Last Coast district.

Mr. Semple assured the deputation that no difficulty would be raised in that connection, lie. was most sympathetic towards the whole project of extending power to the Coast. High Return on Outlay Continuing, Mr. Ball stated that the board desired to secure a relaxation of certain conditions relating to the guarantees on country lines. Some years ago, lie said, the financing of country lines called for additional capital, and application was made to the Local Government Loans Board for authority to take a poll of ratepayers. The Loans Board had agreed, but bad insisted on the Power Board including a provision for a return of 17 per cent of capital outlay on the lines for a period of 10 years. That provision had to be included on the voting paper submitted to ratepayers.

Watching its opportunity to raise money cheaply, the. Power Board subsequently had "raised £20,000.at 34 per cent, and later £IO,CCO at 3£ per cent, which was 2 per cent below the interest maximum set by the Loans Board. The Loans Board was then asked to relax (lie 17 per cent return stipulation, and the reply had been that, as the provision had been included in the voting paper, it could not be relaxed. Its inclusion on the voting-paper, Mr. Ball asked the Minister to note, was insisted on in the first place by the Loans Board. Relief for Country Consumers instancing the burden which this 17 per cent obligation placed on the board and its potential consumers, Mr. Ball stated that an extension of the lines into the Kanakanaia Valley was being considered. On the basis of 17 per cent return on capital, the annual cost to be borne by the settlers in the form of guarantee payments would be £775. If the compulsory return could be reduced to 15 per cent, the amount to be found by about 40 consumers on the line would be reduced to £684, the difference representing about £4 6s 8d per annum per consumer. The conditions applying to the Kanakanaia Valley were paralleled all over the district, and the board was hampered in its projects by the heavy burden which consumers must bear'in the form of guarantee payments.

The Minister remarked that apparently the only way to bring about the desired change" was* by special legislation. He could not give any definite promise to the Power Board, but he would take it up with the Minister of Internal Affairs when he returned to Wellington. His own view was that interest rates had been too high in the past, and that the burdens of the producers should not be made any more pressing than they need be.

Mr. Ball asked whether it would be possible to bring the matter under the National Expenditure Adjustment Act, but the Minister was doubtful on that point. Mr. Semple repeated the assurances he had given in the earlier stages of bis tour of the Coast, to the effect that he would bring before the Cabinet the whole question of providing electrical service for people in sparsely-populated areas, who. if they had to shoulder too heavy a burden in order to secure the power, would only find it a curse. Reaching Over the Barrier

Parliament would have to thrash the matter out. he informed the deputation, but it was definite that something would have to be done to reach over the barrier of high costs, against which the extension of power-lines was jammed to-day.

The Power Board chairman agreed heartily with the Minister regarding the necessity for finding means to extend the line's without unduly burdening the consumers. The Poverty Bay board had been able to build up reserves, he said, but they were being used in accordance with the policy of the Government, to lighten the burdens of those who had to buy appliances for the use of power.

The Minister: 1 know how you arcusing your reserves, and I believe it is the right way, too !

At this stage Mr. A. G. Hultqmst, M.P. for the Bay of Plenty, introduced a deputation of Tiniroto and Hangarua, settlers, Mr. M. T. B. Hall, as spokesman for the deputation, stating that the position of potential consumers in his area was almost identical with that of people on the East Coast. The main difference was that Tiniroto ana Hangnroa were in the Poverty Bay power district, and had the transmission line running right through them. All that he had intended to say. added Mr. Hall, the Minister had already said much more clearly than the deputation could have put it.Mr. Semple replied that he thought be understood the position fairly well, and that he would keep the requests in mind as part of the general situation with which the Government would Jiave to deal. TOUAGA BAY'S POSITION (Herald Special Reporter.) TOLAGA BAY, this day. Only brief reference, to the request to the 'Government to provide electric power for the Coast was made by the Minister of Public Works, the Hon. K. Semple, when speaking in Tolaga. Bay yesterday afternoon.

After the matter was raised by the county chairman, Mr. J. McNeil, and Mr. A. Gordon Hultquist. M.P.. the Minister had copies of the day's Herald before him containing a, report of the statement he made at Te Puia on the previous evening, and Mr. Semple said that this explained his attitude. He had no authority to give assistance yet, but the Cabinet' would look into the matter. Mr. Hultquist, when supporting the plea for Government assistance, said that the plant at Tolaga Bay was nearingi the end of its usefulness, and if power was not brought into the district the .local supply must finish because it would he too costly to be renewed.