ELECTRIC POWER

Southland Times, Issue 19772, 21 February 1923, Page 5

ELECTRIC POWER

THE MANGAHAO SCHEME I DEPUTATION TO MINISTER NO REDUCTION IN CHARGES. ; (Per United Press Association.) WELLINGTON, February 20. lAn important deputation, representing i electric power boards from Wellington to i Wanganui and from Wellington to Danne- : virke, waited on the Minister of Public I Works (Hon. J. G. Coates), to-day, with ; reference to the supply of power from Mang&hao, particularly as to the date when the i supply will be available and as to terms ini eluding guarantees asked from each board. I The deputation consisted of the following I members of Parliament: Messrs T. M. Wil- | ford, W. H. Field, G. R. Sykes, J. A. Nash, J. Linklater, and E. A. Ransom; also Mr J. !B. Carruthers, chairman of the Tararua ; Electric Power Board, Mr P. H, Smith, sec- ' rotary and manager of the Wairarapa Elec- ‘ trie Power Board, Mr M. A. Elliott, Mana-watu-Oroua Electric Power Board, Mr Waters, electrical engineer. Mr A. Gavey represented the electrical branch of the PubI lie Works Department.

Mr E. A. Ransom, M.P.. eaid the deputation was ’ practically representative of the whole of the power boards calculated to take cun-ent from Mangahao scheme. They recognised that they were taking part in one of the largest national undertakings ever entered upen in the country, and they wished at the outset to make clear that they desired to assist in the successful completion of the scheme. They recognised that the Government had been faced with very serious difficulties in the construction of the Mangahao works, owing in the first place to the foundations not being so satisfactory as was de-ired, and in the second place owing to storms and floods recently causing further delay. The members of the electric power boards felt, in the circum-

stances, that they should give the Minister the opportunity to indicate approximately the date when the Department would be able to supply power to the boards. Very large sums of money were involved in expenditure by the boards, and they naturally wished before they proceeded with their construction work to have an assurance that the current would be available when those works were completed. If they proceeded with their works and current was not available at the time of completion, the boards would be involved in heavy outlay for interest, and their .operations would be seriously affected from the start. He outlined the position in regard to the Dannevirke board, and said that their engineer had pointed cut the difficulties that would arise owing to any uncertainty as to the date when current would be available. That threw’ upon the board the responsibility of deciding whether it would instruct the engineer to proceed with the works or not. The board therefore resolved to discuss the matter frankly with the Minister and endeavour to ascertain whether he could give an assurance as to w’hen current would be available.

Mr W. H. Field, M.P., speaking on behalf of the Horowhenua Electric Power Board, endorsed what Mr Ransom had said. He noticed that the Minister had said that owing to recent floods there would be a delay of three months in the completion of the Mangahao works. As the board hail entered into contracts and desired to push ahead with their works, they naturally wished to know what the altered position was, as the Department was asking boards for guarantees as to how much power they would take.

Mr T. M. Wilford, M.P., said that as the member for Hutt, he supported what Mr Ransom had said. There were certain industries in the Hutt Valley district that were considering putting capital into their undertakings and they desired to know when the current would be available. Mr J. A. Nash, M.P., Manawatu, said that the Power Board of his district had entered into a contract for £400,000. That was a very large sum of money, and the board wanted to know the position so that it might be able to order the goods that were required to come forward for construction purposes.

Mr J. W. McEwen (Hutt Valley Electric Power Board), Mr G. R. Sykes, and Mr P. H. Smith endorsed what had been said by other members of the deputation. The Minister of Public Works replied that the first point was the date of completion of the Mangahao works. At present it looked as though they were going to be later than was formerly thought would be the case. Recently there had been two washouts. The last washout would put the works back about three months. He outlined the extra efforts which had been made by the Department to push on the work by means of employing additional numbers of men, working exceptionally long hours. It looked, however, as if the Department could guarantee completion of the work in June, twelve months, providing there were no more delays. The interest charges amounted to between £2500 and £3OOO a month. That sum was being added to capital cost in the meantime, so that the small extra amount spent in overtime was really money saved. Mr Ransom drew attention to the charge of £lO for the first 200 kilowatts and £8 for further supplies. It would materially assist the boards in the earlier stages of their undertakings if the amount were made uniform at the smaller charge. Mr Coates replied that the standard rate mentioned supplied all Government installations until such time as the installation paid interest, sinking fund, and depreciation. When it showed a profit, the Government could then say it was a paying proposition and could consider the question of reducing the charge. The scheme would cost the Government £1,590,000. They had annual costs to add to that of capital charges; also the charges for power station, sub stations, management, and so forth. There might be a revenue of about £158,000 which only showed a very small margin on the annual cost. The expenses would be about £157,000, and revenue £158,000. He would put it that way. There was a mar- ■ gin of £lOOO between the two. They were ' asking the Department to forego the charge I of £lO for the first 200 kilowatts, and make , a flat charge of £B. Did they think it wise ■ that the Consolidated Fund should be called i upon to assist an enterprise of that sort? This was a commercial development, and ought to stand on its own feet. The charges at present made were known as standard charges and existed everywhere I where they had Government installations. I Dealing, with the question of the guarantee asked from the boards, the Minister said that Mangahao was going to involve very haid work to make it the attractive proposition they would like it to be, and it was necessary that guarantees as to amount of current required should be asked. The Boards were only asked to guarantee 40 per cent, for the first year, and so on, so I that the boards were not asked to guarantee a large proportion of their estimated requirements.