MAJORITY DELEGATES’ REPORT.

Waipa Post, Volume XXIV, Issue 1415, 13 October 1923, Page 5

MAJORITY DELEGATES’ REPORT.

WAITOMO SCHEME RECOMMENDED (From Otorohanga Correspondent). At the request of the signatories to the Public Works Department in connection with the formation of a Power Board in this district, a committee was formed from the local bodies connected with this district. The following delegates .were appointed:— Otorohanga County Council, Messrs F. Potts, H. A. Lurman, R. P. Hill, S. Sanson and W. Irvine; Otorohanga Town Board, Messrs R. Bell and F. Phillips; Otorohanga Chamber of Commerce, Messrs E. Closey and J. A. Ormsby; Otorohanga Farmers’ Union, Messrs C. G. Murphy and T. G. Rogers; Otorohanga Dairy Farmers' Union, Messrs S. A. Cook and J. J. Walker. The following additional delegates were admitted as representing Various bodies of ratepayers and business people. Messrs A. B. R. Mossman, H. Benner and J. W. W. Seymour. The committee has carefully considered all available data in connection with the various proposals to provide the district with hydro-elec-tricity, and reports as follows: — The committee, which is fully representative of the district, considers that the time is ripe for the establishment of an electric power scheme for the district In this collection there were three propositions for consideration— 1. Forming a new power district for Otorohanga town and adjacent district. 2. .Joining with Te Kuiti Borough and part of Waitomo County in the formation of a new power district. 3. Joining with the present Te Awamutu Power District. No power district can be formed without the consent of the Public Works Department, which refuses to permit the formation of a new power district at Otorohanga only. This disposed of the first proposition. The Waitomo Scheme.

The Waitomo scheme may be briefly outlined as follows: — it is proposed that Otorohanga town, parts of Otorohanga and WaiLomo Counties, and the Te Kuiti Borrough form a power district. The district will comprise Otorohanga County, 11 square miles; Otorohanga town, 1 sq. mile; Waitomo County, 7355 q miles; Te Kuiti Borough, 3ii sq. miles. The estimated population is: Otorohanga County 1662, Otorohanga town 516, Waitomo County 1656, and Te Kuiti Borough 2247—t0tal 5481. The estimated reticulation shortly necessary is: Otorohanga County 30 miles, Waitomo County 16j. miles. A line of 12 miles between Otorohanga and Te Kuiti would also be necessary. It is anticipated that extensions of 40 miles in Otorohanga County and 18 miles in Waitomo County will become necessary as the demand develops. The Government has constructed a line from Hora Hora to Arapuni, and has undertaken to run this line to Te Kuiti within 12 months of a guarantee being given to take up 250 k.v.a. Reports on the proposed Board and its revenue and expenditures were considered. The committee is of the opinion that there is a great likelihood of the scheme being effected without the necessity of collecting a rate. There is already an established demand in the Te Kuiti Borough, with a connected load, which would be of value, as the Board could commence selling power immediately the Government line was put in. This would save paying interest while new business develops. In this connection there is an established day load which would enable the Board to retail power to advantage, owing to an improved load factor. Also, the Government pays for the transmission line to the most suitable place in the district for the Board to take current from. The committee had the benefit of a special report from Messrs Vickerman and Lancaster, electrical engineers, which is attached to this report. This recommends the Waitomo scheme as being preferable to joining with the Te Awamutu Board. The Public Works Department also states: —

Experience so far indicates that it is not generally advisable to attempt to reticulate the whole of a large country area. However, there is nothing in this to show that a power board, such as the Waitomo Board, including Otorohanga, should not be a financial success, provided it exercises sufficient care in selecting routes on which the necessary revenue can be obtained to justify construction of lines. Under legislation of this year it Is now possible to form special 'loan areas to put in lines, so that it is no longer necessary to include farms in the loan areas and make them liable for a rate unless they are able to get j power. ! Tlic Te Awamutu Scheme. | The proposal to join the Te Awa- | mutti area calls for the union of Oto- ' rohanga town and the adjacent setj tied country with the existing Te Awamutu Power Board areas. This Board has already borrowed £132,000 and erected 260 miles of line. The security for the loan is a special rate of 13-16ths of’ a penny in the £ over the Board’s area. The Board has so | far met the interest charges by pay- ; ing two years’ interest out of loan j moneys, and for four years past has j collected a rate of 1-7th of a penny ! in the £ over all land in the district. : This means that the general ratepay- | ers have had to subsidise the con--1 sutlers'of electricity to the extent of I £2OOO per annum. The committee j considers that a rate will be needed ! for at least another year, and maybe I two, until the revenue overtakes the ! interest 'and running charges. It j cannot recommend any scheme to the ! ratepayers of this district, if it will i involve a rate. : The Te Awamutu Board declines to I formulate a scheme for this district unless Otorohanga first decides to

join it. If Otorohanga joins with Te Awamutu it at once becomes merged in the Te Awamutu inner area and pays the same for power as is charged the present Te Awamutu consumers—irrespective of whether reticulation can be done more cheaply here. If the revenue over the whole district were less than the expenditure, then a rate to cover the deficiency would be levied over the whole area, including Otorohanga. Otorohanga would automatically become liable for a flat rate based on Te Awamutu’s past capital expenditure. While the committee does not wish to criticise the Te Awamutu Board or its work, we have had expert advice that reticulation can now be done about 30 per cent cheaper than when the Te Awamutu district was reticulated—or in other words, where Te Awamutu spent £IOOO the new Board could do the same work with £7OO. It is also considered that the representation on the proposed Waitomo Board —Otorohanga County 2, Otorohanga town 1, Te Kuiti Borough 2, and Waitomo County 2 —is more favourable than could be obtained from the Te Awamutu Board. The committee considered that taking all the foregoing into consideration, and in view of the fact that the proposed Waitomo scheme provides a more complete service to the district as a whole, providing, as it does, for present and future requirements, it should recommend the ratepayers to join the proposed Waitomo Board. Mr MacLellan, Electrical Engineer of the Public Works Department at Hamilton, attended a meeting of the committee and gave valuable technical information. A sub-committee was set up to draw up a report in accordance with the finding of the majority of the delegates. As this sub-committee is not unanimous the above is issued by the majority who, after mature consideration, strongly recommend the proposed Waitomo scheme to the ratepayers.