THE POWER SCHEME.

Southland Times, Issue 22916, 15 June 1936, Page 9

THE POWER SCHEME.

To the Editor. Sir,—The poll to decide the future control of electricity in Southland is about to be taken. On one side is Government control, with all rates done away with, meter rents reduced onehalf at least, perhaps altogether, any loss of the Southland scheme borne by the whole of New Zealand taxpayers (up to the present, Southland Power Board ratepayers have had to make up a loss of £500,U00), and in the event of an extensive breakdown here, an immediate switch over to Waitaki. Electricity is to be no dearer than we pay at present, with the prospect of it being cheaper than we pay at present. There will be a much bigger chance of non-reticulated areas being reticulated and the Government will take over all our liabilities, including the cost of this poll. Or are we to remain under Southland Power Board control with no prospect of rates being abolished for at least five or six years at the earliest, while we still continue to pay our shares of any loss on Government schemes throughout New Zealand? There is no guarantee that the price of electricity will not go up. There is no stand-by plant, except Invercargill City’s small one, which is little or no use to country consumers. There is little or no prospect for non-reticulated areas being served with power. In fact, sir, under the board’s scheme to increase Monowai, it is only a “tide over” for a few years, as ultimately the full capacity df Monowai will be used up, and what then? We will have to look elsewhere for more power. And last, but not least, under the Southland Board scheme, we will be an isolated supply authority which is against all modern ideas. The great aim, the world over, is to link up with another supply authority, or for all to come under the one authority, which undoubtedly will, in years to come, be the case in New Zealand.

The present Government has made a wonderful offer, and although some people—against their better judgmentare preaching and teaching against handing everything over to the Government, they know perfectly well that it is a golden opportunity for Southland; but because they are “agin the present Government,” they are trying to persuade farmers and others to vote against selling, knowing full well that it is in the very best interest to Southland to quit. The board made a fresh agreement some months ago with the City Council and agreed to forgo that £3600 which the City Council agreed to paysome six or seven years ago, to the Southland Board on condition that the board would collect in addition to rates from their country consumers, a sum equal to £1000; which they did by making meter rents 1/- instead of 6d. per month. Now, sir, what I want to know is, why did not the board, when they relieved the City Council of that £3600, immediately reduce the meter rents to 6d. and thus save their consumers a total annual sum of £4OOO odd.—Yours, etc.. ADVANCE SOUTHLAND. [This letter was referred to Mr J. T. Carswell, chairman of the Southland Electric Power Board who made the following reply: “(1) The answer to the query why the board has not reduced meter rents seeing they have forgone the payment of £3600 annually from Invercargill, is that the board has reduced meter rents by half as from May last and it hopes very soon to reduce meter rents altogether. The cessation of Invercargill’s payment took place at June 1. “(2) In regard to the statement that a loss of £500,000 had been made up by Southland ratepayers, it is true that about £500,000 has been paid in rates, but in the board’s view this money has been used to build up the business to its present satisfactory position, and to provide a sinking fund of £400,000 available towards liquidation of the loan. “(3) In regard to Waitaki, the following are facts:—(a) The board offered—in priority to extending Monowai—to buy its surplus supplies from Waitaki; (b) the Government submitted quotations which were considered by the board to be too high, and the Government declined the board’s counter offer; (c) although the Government has now declined to supply the board in bulk from Waitaki, the board is now and will always be willing to give priority to Waitaki for its surplus requirements at reasonable rates: (d) the Government has stated that it will place no obstacle in the way of extending Monowai if Southland retains the scheme.

“(4) Regarding capacity of extended Monowai (11,000 kilowatts) —this, in the board’s opinion, will serve Southland’s normal requirements for at least 15 to 20 years. When Southland’s consumption reaches 11,000 kilowatts the business will be highly payable and no difficulty should then be experienced in augmenting the supply, even if the Goverment of that day should refuse to supply in bulk from Waitaki.”]