The Timaru Herald. SATURDAY, SEPTEMBER 19, 1925. SOUTH CANTERBURY PAYS.

Timaru Herald, Volume XCVIII, 19 September 1925, Page 8

The Timaru Herald. SATURDAY, SEPTEMBER 19, 1925. SOUTH CANTERBURY PAYS.

Some explanation is due tlie people oi south, Canterbury of tlie policy of tlie Jlydi-o-edeota-ieaty Division of tlie public Works Department, in connection with, inordinately iieavy cßai-ges for hydi'p-elecuic supplies imposed upon tins community, in compan> son with, tlie rates provided, in tiie agreement concluded between the Department and the Uhristchurch Oity Oouncil. We have nothing to say by way of objection to the Department granting 1 particularly favourable terms to the civic authorities of the Cathedral City or any one else, providing it can be shown to the satisfaction of the people of South Canterbury, that very liberal concessions are not being granted tlie capital of the province, at the expense of other consumer's. Prom the inception of Lake Coleridge scheme, Christchurch has profited by unusually generous rates conceded the city. Lor years the generating station at the Lake was operated at a heavy loss to the State, but Christchurch was so favourably situated, as far as the contract with the Government was concerned, that while the State made considerable losses every yeah the civic authorities reaped a substantial profit. In the Public Works Statement, presented to the House of Itepresentatives pn Tuesday last, the Minister submitted a report on the financial results of the Lake Coleridge scheme. “The capital has been increased,” says the report, “duiing the year from £892,801 to i11,00b,491, of which about £IOO,OOO is for duplication works that have not yet gone into operation. The financial results for the year can be summarised as follows: Capital' investment, £1,008,491; revenue, £92,168; expenditure'—working expenses £28,270, interest £47,780, depreciation £15,679 —£86,729; profit £5434. This has been utilised in reducing the deficiency which had accumulated on the profit and loss in the early years, from £23,172 to £17,738/’ Last year, Departmental operations at Lake Coleridge showed’ a profit of £5,434, while the Christchurch Oity Council thanks to the favourable rates conceded by the Department reaped a profit oi £36,000! It will thus be seen that consumers outside the city area iare in reality not only paying disproportionately high charges for 1 - current, but are actually engaged in the unpleasant task of contributing to the levy the Department lias imposed upon new consumers, including the people of South Canterbury, to recoup the State for the initial losses suffered owing to the low rates at which current has been sold to Christchurch. Not only has Christchurch reaped a substantial profit each year and built-up a big reserve, but city consumers are in the happy position of being supplied' with very cheap hydro-electric energy for lighting, heating and power purposes. TVe take the following trom the New Zealand Year. Look, 1925: This (the contract made with the Department) enables the Council to retail it to the public for lighting su 5d per unit flat rate, or (3d per unit for forty hours of maximum demand, and Id per unit thereafter, and at lid per unit for power in small units, with special z-ates ranging from Jd to l-3d per unit for special contracts. / Wei invite consumers in . South Canterbury to examine this scale of charges and contemplate the difference between say £d per' unit for domestic cooking and 4d charged in this district. But this is not all. The favoured treatment of our northern neighbours goes further. The scale of charges quoted above give the civio authorities of Christchurch a profit of £36,000 last year', when the city was paying* £8 13s 4d per annum per kilowatt for the first 300 k.w., and all over 300 k.w., £5. But what of the future;? Let us quote from the Public Works Statement:

“During the year a new contract for supply oi power lor a period of twelve years was entered into with the Christchurch City Council, the Department’s largest consumer on the Coleridge system. This contract provides that tile Council shall guarantee to the Department substantial minimum pa.> monte each year, and in return will receive power at rates equivalent to those at which it estimated it could have obtained power from a local development at ’Waimakariri. It is considered that this contract will have very satisfactory results for botn parties; the Department has secured a guaranteed revenue over a long period, and tho Council has secured a power-supply at cheap rates, without the risk of having tho capital expenditure on which the charges v*4'ro based exceeded during construction.’’ \V r o invite tho people of South Canterbury to closely examine the whole position. The new contract grants Christchurch important concessions—guaranteed supply at lower rates—beginning next year, but in 1931) tho price of current will fall to under £(> per k.w., while in 1934, the State will 1)0 selling current and guaranteeing a. supply of 22,000 k.w. to the Christchurch City authorities at £4 15b per k.w., and there is to be a gradual decrease in price to about £4 3s per k.w. in 1937. Now, we put it to the people of South Canterbury that if Christchurch consumers can be given a most favourable scale ol charges, and the city can make £30,000 out of tho year’s operations, while paying tho Department £8 13s 4d per annum per k.w., how immensely improved will he the position of city consumers when the terms of: the new agreement come into effect next year and remain in operation until 1937. In view of the preferential treatment, accorded the capital of the province, we urge the people of South Canterbury to assert

themselves and demand fairer treatment. Not only is South Canterbury paying a iieavy financial tribute to liquidate the losses incurred during the earlier yeais of Lake Coleridge, due largely to the unprofitable contract the Department made with the Christchurch City Council, but consumers in this district are paying high rates for current and are being hampered and annoyed by an unreliable and inadequate service. If South Canterbury consumers and prospective consumers would begin to realise the invidious position into which publio apathy has landed town and country interests they would indignantly cast off the imposition of°heavy charges and unreliable service, and immediately open their eyes to tlie rmique hydroelectric potentialities awaiting development within easy reach.