“BUY COLERIDGE”

Star (Christchurch), Issue 16861, 11 October 1922, Page 9

“BUY COLERIDGE”

CITY COUNCIL’S OFFER. DISCUSSION IN HOUSE. (Special to the “ Star.”) WELLINGTON. October 10. 14 Although plans and specifications ■were ready for calling tenders in regard to the duplicating of the hake (’oleridge tunnel, when it was seen that Christchurch City desired to develop the Wairnakariri and thatSouth Canterbury was anxious •'■o develop Tekapo. the position was altered.” stated the Hon J. G Coates, Minister of Public Work-, during a debate in the House yefrterday. on the Christchurch City Council's offer to the Government to bus i he hake Coleridge hydro-electric station. The Minister did not indicate whether the Government was prepared to consider the council’.offer, hut devoted his reply inainlv to defending the Government’s d • vision to charge a flat rate for hydiv»~ electricity over the whole J>ominioa. The matter was brought before the House by Dr Thacker during the third reading of tlie Electric Power Hoard's Bill. His comment on the situation provoked discussion from members representing inanv parts of the Do minion. < >ver loa ding chr tstchttrch . Dr Thacker at the outset mentioned that when the Government decided in 1910 to take ovei the Christchurch municipal scheme of exploiting hake < oleridge it took. too. a «um of £2500 which the council had raised. Re « >mtly the council had decided to get ♦•Xpert advice on -la possibility of developing the Waii.-akM in ami were prepared to expend £.“<>oo The Gov eminent had announced that it intended to “ncrcase th*' charges for power irom Lake ('oleridge by 100 per cenc ii order to finance unprofitable schemein the North Island, just as had been done in connection with the South Island roads and railways. Ho wante 1 to protest against this proposal. Tt ■rap most unfair to overload Christchurch because it bad a payable proposition. The Government, too. had announced that it would not proceed with the development of the second unit of Lake Coleridge power until the council had decided what it was going to do ir? connection with its scheme. JOKER UP HIS SLEEVE. ' What I want to know is tlii<=," continued Dr Thacker. “The Christchurch Council last night agreed that, before it would exploit the Wainiaka • riri it would n«k the Government to .-ell T«ake Coleridge to u« as a power board. That is only a fair proposition Timaru and South Canterbury an l Dunedin owned their own plant, and lieconsidered North Canterbury and its districts should tiffite in one big power board. By the prooess now l>eing cari i**d out it was proposed to raise tlu surface of Lake Coleridge 12 to 20 feet, then to generate 30.000 to 40,003 horse power, and Christchurch would want it. The Minister sits tight, like a man playing cards with the Joker up his sleeve. He knows he con win with liis majority behind him, ami he is going to keep back our power for two or throe years. There is no need to do that in common fairness to us, as a community handicapped bj' o?ir distance from a harbour and our railway, and now we are to bo handicapped simply because we have made a .-tart with liydro-electrir I»wer. I appeal to the Minister, the Government and tlie House to give Canterbury n square deni, si fair filing, such as •- being given to Wellington with the Mangahao scheme. NEEDS OF THE FUTURE. T>r Thacker went on to explain that there was a multiplicity of rates in Christchurch district. It was eventually hoped to consolidate* the whole of North Canterbury. and then the AVaimnkiiiri scheme would be valuable to amplify tbo power needed for rail, haulage, and to link up with Marl borough. Christ church was prepare-.; ir buy the Lake Coleridge station at a fair valuation and# put the whole ox North Cant orb iry on the same basis. This would relieve the Minister of all bis anxieties, and the speaker believed he could get, his money hack to spend < Iscubero. Dunedin had no difficulty in raising £136.000 locally for electrical development. and the speaker believed the Christchurch people would lend the money required for the purpose. The Coleridge scheme could still be linked ii] with other sources of supply, thus minimising the risk of failure. Christchurch would shortly have a third power line from Lake Coleridge, and there would Ik; no difficulty in securing a good water Supply for the lake. ‘We don’t want to stand still.” declared Dr Thacker. “The Minister .•rave such a shock to North Canterbury citizens alien he said ho was going to ' of tight.’ ” Finally he urged the .Minister to go on with Coleridge d velopmont, describing the rapid increase in demand for electric power. There should be no politics about it. no holding back. The South Eland was quite prepared to abide by a fair deal, and ho believed they could get i* from the present -Minister. A PROVINCIAL POLICY.” Sir .John Luke complimented Dr Thacker on his loyalty to Christchurch, but reminded him that in 1909 the Government decided to give the whole oi New Zealand a fair deal by nationalising water power resources. Christ church was contending that because the Coleridge experiment was made when cost- wen- low it should have that advantage against the North Island. Would they run the railways in tlm same way? Dr Thacker: Yes. if you give back what you took from us. Sir John Luke: The South Island railways have been a sink for the money < i New Zealand, lie added his strong opinion that hydro-electric power .should be viewed as a national asset. The Hon J. A. Hanan suggested that there had been developed a provincial policy. which showed a want of confidence in State ownership and management. It was a new idea that public utilities should bo transferred from the >tate to local authorities- This was decentralisation. Ho wondered what would be the position if the national railways had to run on electric power controlled by local authorities. Every one in New Zealand was responsible for interest and sinking fund in respect to Lake Coleridge, but Christchurch wished to get special terms at the expense of the rest of New Zealand. He believed, however, that tlic time was roming when a modified system of provincial government would have to be established as a check to over develope 1 centralisation. ” A BIT AFRAJD Mr E. J. Howard suggested that the Government was a bit afraid to develop Lake Coleridge further. They were peeking every excuse to delay fur ther development. The engineers seem >-»d to have doubts about water supply to Lake Coleridge. Lake Tekapo According to an original report on power resources showed greater possibilities than Coleridge. There was a ■joo i steam plant lor stand-by purposes 2b Chri.st' hurhii-h had been ex-

tended at the Government’s request. If 1 Tekapo was developed the weather difficulties which affected Coleridge were unlikely to- occur simultaneously at both places, therefore the possibility of power being cut off was greatly reduced. He could not understand the Minister or his engineers ‘''getting their hacks up ” because the Christchurch City Council was showing signs of enterprise. He hoped the Minister would go on with Lake ('oleridge development. There was talk of “ wild cat” schemes of development, and be suggested that the time was ripe for a fresh survey of the position It might be found preferable in 6uch places as Huntlv to develop electric power from small coal. “ T hope the Minister will not be side-tracked b.v suggestions, sometimes playful, from Christchurch.*’ conduced Mr Howard. 41 If the Minister is not afraid of Lake Coleridge I say it will be a crime if he does not go with such an easy proposition.” “NO HOPJ# FROM COLERIDGE.” Mr Burnett in supporting the contention that his district had no hope of securing power except from Tekapo said there was a sub-province with i capital value of £21.000.000 one third of which was in V ainiate County, which had no hope of being reached either from Vaipori or Coleridge, therefore it must have a scheme of its own. Doubt was expressed by Mr Burnett- that (’oleridge could ever supply the whole of the Canterbury district. Its potential power depended on the Harper diversion and what was to prevent the diversion works being washed away if a heavy Hood was experienced. Had the people of South Canterbury known that there was likely to be any hitch 1,1 t' le Coleridge arrangement he was sure there would have been more titan the required 25* per cent of petitioners lor the establishment erf a separate board. ; THIS CIVIL WAR.” " 1 don't want to interfere with this i civil war in Canterbury,” remarked Dr Newman, but he could not resist the temptation to tell Canterbury members that their district had got electricity at absurdly cheap rates- He was. becoming anxious about the increasing cost of the schemes. He was disappointed over Mangahao owing to its great expense. It would have been cheaper to develop Waikaremoana. 1 • 7 a m desperately afraid,” said TV Newman. ” that it will not pay interest and sinking fund.” M 1 XISTER IN R EPL Y The Minister of Public Works during a general reply to the debate said lie was no: going to admit that North Island schemes would not pay as well as Coleridge when they got going, There were two reasons ior ibis. Coleridge started very slowly and built up its load gradually, but Maugaliao and Arapum would start at a tremendous advantage over Coleridge. There was an instance at Horuhora, which in its second year had already worked up a load greater than Coleridge secured in th© first five years. The load was the controlling factor il the sale price was right- Taking Coleridge as U stood at present it was behind to the extent of : £80.674 with sinking * fund vet to he added, making a total of about £60,000. CITY COUNCILS PROFITS/’ I am not saying this by way of comment,” he continued, • but tile Christchurch City Council has done fairly well out of us, because our accumulated lasses amounted to £70,000, and to-day they stand at ar»out/£60,()00. at a time when Christchurch in one year sets aside reserves and tiepnetfa.trion of £22,93.3. 'They have set aside a little over £70,000. Last year they made profit of £22,950, and after setting aside reserves and depreciation there was a net profit of £6213. so that so far as the < itv Council is* concerned thev have done very well out oi electricity.” Dr 1 hacker: They used that money to help people to get services. The Minister: Yes. you art' carrying out reticulation out of revenue. There i- no need to borrow money when you arc making your own at the expense ot the Government because our contract prices are giving you power at a loss. Me are anxious to make the scheme pay. and we cannot allow these accumulated Tosses to continue. Wo are not complying with the Act. because wo are not setting aside sinking fund and depreciation. Now we are asking Christchurch to pay standard rates or something near to them they object. “NOT ONLY CHRISTCHURCH. * May 1 say that I look at it from the country’s point ot view. It is not only for Christchurch- The whole of New Zealand has to be considered, and if i: is possible to reduce standard rates when wo get the sale loads it is j*erfectly certain it will be done. Hydroelectricity* must be eonsiderd as a coin* inercial proposition and paying rates must bo charged. except perhaps in the case of a new industry which could only ho built up on cheap power, possibly supplied at night. The schemes must pay interest, sinking fund and depreciation, otherwise sooner or later the electors would turn around and prevent further development. Rather than reach this position it would bo better to run along on an even keel and develop current without placing a burden on the genera! taxpayer. Although plan*' and specifications were ready for calling for tenders in regard to the duplicating of the Coleridge tunnel, when it was seem that Christchurch city desired to do whip the Wnimakariri and that South < anterbuvy was anxious to develop Tekapo the position was altered. So far \Y AIM AK A RIRI KCH EM E. earned lie admitted it was not possible tu economically convey power over a 60,000-volt line to Waimatc. and. indeed. it would suit the development oi the general scheme to have some development at tekapo. because it would work north and south. At the same lime a good deal of power could he taken a little south of Timaru with advantage and economy. He did not knftw what the eost would be of developing the Waimakiriri, “but,’’ he added. “ 1 say it is quite worth while to have a thorough investigation into i i:. There is no reason why this should not be done. Tdo not. seize upon it as S an excuse for delaying Coleridge, but I what T do say is that if you can get [power cheaper from the 'Waimakiriri. then why go on and develop 36,000 horse-power at Coleridge?” TH E MAN FRACTURING CENTRE OF NEW ZEALAND.” j The Minister said that Lake Oolerj.idge*liad reached the stage at which j further development, meant doubling > 1 lie capacity, ff the Wnimakariri could | give 10,000 horse-power straight away it would lAeati in the case of duplicati mg Coleridge a supply of 40.000 to ! 15,000 horse-power in a few years, an i I there was no possibility of a sale for j this quantity in Canterbury He was just, as anxious as Christchurch to do the right and proper thing. In any < ase, a month or two of delay would not make the slightest- difference, because he had gone ahead of his plans in order to provide work for Christchurch unemployed, and he could catch i up. He had no doubt about the de- • mr.nd for power in Canterbury. The \ load would grow gradual!}*, and so much faster as time went on. It had been said that Christchurch would become the manufacturing centre of No v Zealand. It was certainly a most suitable site, and already it had made < reat strides in that direction.