HYDRO ELECTRICITY.

Wanganui Chronicle, Volume LXXVI, Issue 18443, 29 March 1922, Page 2

HYDRO ELECTRICITY.

FINANCING POWER BOARDS. DISTRICT CONFERENCE WANTS LOANS CONSOLIDATED. GOVERhfMENT TO BE APPROACHED. An important conference of representatives of the Wanganui-Ran-gitikei, Manawatu-Oroua, Horowhenua, and Dannevirke Hydro-Electric Power Boards was held in Palmerston North on Monday. The conference was convened by Mr J. A. Nash, M.P., chairman of the ManwatuOroua Board, for the purpose of endeavouring to get the Boards mentioned to unite in getting the Government to agree to the raising of a consolidated loan for the works in their respective districts. The deliberations resulted in the conference deciding to ask the Government to giye a State guarantee to a consolidated loan. Mr. J. A. Nash, M.P., presided, other representatives present being; Wanganui-Rangitikei, Messrs HopeGibbons, Lethbridge and Purnell: Manawatu-Oroua, J. H. Vincent, M. A. Elliott and the chairman; Horowhenua, G. A. Monk, A. L. Seifert, and Goldsmith; Dannevirke, Elder, Ransom and Craven. The chairman, in opening the proceedings, said that financing was the most important matter in connection with the construction of power boards throughout the Dominion. His Board had felt that while it was in a position to go on to the London market for the security, a consolidated loan would be obtained at a cheaper rate. The better way would be to have a combination of powerboards. Personally, Mr Nash had been worrying the Minister for Public Works in the House urging the Government to take the total responsibility of moneys for electric power boards. The last promise he got was that during the recess the Government would go into the matter. STATE GUARANTEES. When Mr. Massey was in England, he cabled to the effect that no further state guarantees were to be given for loans. However, that did not alter the fact that there was a responsibility upon the Government with regards to the financing of power boards. Even though the boards in and around that district might lay a claim for help in the matter, applications would be made in a general way by boards all over New Zealand. The question was: how far should this conference go in embracing other areas in the matter of the consolidation? The chairman mentioned that Tararua had asked to be allowed to join in, while it was also suggested that Masterton should be included. This would be for the conference to decide. About a million pounds would be required by the boards represented there. The questions were: Should they Put a joint loan on the market themselves, or should they ask the Government to give the loan a State guarantee? He thought the combined loan with a. State guarantee the proper thing. They r ust get their money at a reasonably cheap rate. He pointed out that by giving assistance the Government would besin to receive its income earlier th if the individual boards ’. id to seek their own loans. It was the duty of the Government to become the gu-r. ntors of the boards, and to undertake the flotation of the loan on the London market. It would be extremely difficult in fact well nigh impossible, to get the money in New Zealand and until finances were assured boards- could not enter into any obligations. In conclusion Mr Nash hoped the conference would agree to approach the Government with a united front and ask for the State backing of a consolidated loan.

IN FULL ACCORD. Mr Ransom (Dannevirke), said he was in accord j/ith the opinions expressed by the chairman. The only point that might concern them was that the loan proposals had not been definitely settled. Should they be disposed of before the Government was approached? Of course, there would be no difficulty in carrying the loans. Would tL> Government not want to know how • much was required ? Mr Nash replied it was impossible to say how much would be required and they could not delay the scheme any io: ger. It was for them to go to the Government and extract an absolute promise that it would undertake the flotation of the loan. Mr Lethbria-e (Wanganui), was also quite in acord with the views of Mr. Nash. THE QUESTION DECIDED Mr. Hope-Gibboi.r (Wanganui) then moved: “That it is desirable that the four boards represented at the conference approach the Government with a request to raise a State guaranteed joint loan.” Mr Monk (Horowhenua), thought the proposal a good one, but said that they should endeavour to point out how much money would be required. The motion was put and carried, and it was agreed that the representatives present form the deputation. After discussion it was decided to include the "’aranua area in the joint loan, thus making it affect five areas. On the motion of Mr Lethbridge, it was agreed that the deputation which is to wait on the Government, should make an endi c.bour to obtain a definite answer from the Minister of Public Works concerning the price that will be charged for power from Mangahao. FINANCING CONSUMERS. Mr. Ransom (Dannevirke) urged that jn arranging loan proposals, the boards should make a proposition in the way of financing consumers requiring assistance. T’-Is would help the proposal considerably. At times such as the present there would be many people, particularly farmers, who would like to be joined up but could not afford the expense. By arranging the necessary security, farmers and others could be assisted, if provision were made in the proposals. The chairman said he thought it was a good suggestlrn, but pointed out it was a matter entirely for the board to deal with. The conference then closed.