LAKE COLERIDGE.

Timaru Herald, Volume XCVIII, Issue 18084, 19 November 1924, Page 9

LAKE COLERIDGE.

POOLING INTEREST CHARGES

MATTER DISCUSSED BY CHAMBER

0E COMMERCE

At last night’s meeting of the South Canterbury Chamber 01 Commerce, a ]e„>er was read irom the Canterbury Progress League inviting the cmunoer to support tiie loliowing resolution, .which iiad beeii passed by that, body :

“That tins Executive enters an emphatic protest against the system of pooling interest charges on the capital cost of hydro-electrical, undertakings, believing this to be unsound as a matter ol ousmess pr.ndiple. Fuither, the pooling process places , an untair burden on tne Lake Coleridge scheme, which was proposed by tne people of Canterbury, and largely constructed at a time when money was inucn cheaper than it is at pre-

sent.” . ' - , The letter pointed o ut that the latest, system of pooling the interest charges on all Government electrical" undertakings was placing an additional heavy financial burden of over £7OOO per annum on the, power consumers’, of Canterbury; arid that tln4 inijmsh'was-, a serious one for all users of power within the province, and if permitted to stand might have far-reaching effects upon the future development and prosperity of ,the, lijike . Coleridge, scheme. In reply' to a question the secretary said that the average rate of interest on the:wholo undertaing was nearly 5| per cejit. . . , Ml- G: Si Cray said that the poolnig of ixjteyest charges as proposed by. the Goverrimeiit, .was soundm principle. In this iristanee.it told against Canterbury, but if the saine argument were applied to the railways, and differential charges were made in the . two islands, the South Island would be vastly worse off than the. Nortli ’ . ; • In reply to-Mi - . R. Shillito, Mr Rolleston .said .that in. the North Island, there was a iiiiifdfm fate,for users of the Maugahao scheme.,AVhen the question was : raised lii the House, one of the North lslarid members pointed .out. that there is a big loss on tne Otira tunnel, and.-’ asked it Canterbury ,was, prepared tovshoulder that - loss,,.and. a flow,. ..the Noi-th Island to liri'vfe. the .full benefit of its; lines, which paid abetter, than the South Island lines., Tlife same principle applied to the State-Advances. Tlie Government had to .pay fricife for sqme of this irioriey than; it received, ■ but’ it paid less .thaii it received for the rest of ,it, and by pooling . the interest charges., it was able to lend it out at 'a, uniforin ; i-ate of• per.cent, over the whole Dominion. , . Mr. C. Dasli Said that the question ol booling the interest charges for. hydros jlectrical undertakings was. not so much bnd of ethics as of'a definite, promise of the.Minister,' that >thc/ Coleridge .system would not at -any .time ..b,e asked to beaf part of the cost of any f ,other eystfeml.lt wiis: a'breach- of faith .on the part'of the ■; Miriister, and the .Chamber shopld .protest- •: ; .' Mr <R: Shillitb. said they, must consider He HW.of South Canterbury. ■ ■'M- -ed ■: “Thab.the. South Cih , lbfel' supports, the resolut _ /y the Canterbury Progrfes- i..me;”-• -..-‘i ••v.-hh' <■< . .This was seconded by Mr J. .Anstey, on,, the ground that the Minister : was breaking a definite promise.. . . ;■ , Mr Shillitb moved that tlie letter be simply received.- ■- ' , •. . :. „Mr R.t.,D._ .Halsteadmoved tliat. tlie 'matter' be deferred for fuller consfderatio.fi at next mepting- of the ■Chamber, '; Mr ; tv-.- G; If wifi - said it would be. a pity to/rusK , the matter .through; that night.. Christchurch : liad'. been 'remarkably well treated, and; South Canterbury liad no,, hope .of being equally 'veil treated! in. regard to thesupply_pf •Kydfo-electrical power He., suggested that .the Chamber should hold'a special irieeting to discuss the matter, ; Tliis was carried by 19' votes to 4.