WATER POWER REGULATIONS

West Coast Times, 3 September 1909, Page 4

WATER POWER REGULATIONS

The much discussed water power regulations have been condemned by many papers throughout the dominion as being of an harrassing nature. We cull the following from the Ashburton Guardian of the 28th ultimo. It v.fll be observed the journal quoted maintains 1 that the power should be given free of any charge, but tax should be placed upon the gold obtained :• - A large and very important question of public policy is involved in the use of water power in connection with goldmining. In view of the fact that gold is a valuable commercial commodity, that, as a rule, the getting of it employs large numbers of people, that these people, in addition to adding to the country's wealth by the production of gold itself, necessarily benefit other industries through the market they supply or rather constitute for their produce} in view, further, of the fact that in this country at least the Government itself does not engage in gold-mining, which is therefore left to' private persons and companies; that water-power is. in many instances indispensable to the industry and that water power belongs to the State arid costs it nothing— in the sense that railways and other public works cost money; in view of these and other correlated facts, it would seem to be wise policy ami simple duty on the part of the State for 'the Government to encourage gold mining by saving in effect to all interested individuals and companies that they can have the necessary water-power practically for nothing. This any way would seem to be a just and commonsense proposition in the abstract, though it would no doubt, in regard to certain details, have to be modified in practice. For instance, the public -interest would have- to be guarded, and no i idividual and above all no company, should be allowed to acquire a monopoly in the State's water power, which should be held on very distinctly denned conditions, subject to periodic though of course not harrassing or arbitrary revision. Then, though with these and other obvious reservations, the water power should at first be given free of cost to the gold seekers, and should never really in itself be charged for yet a royalty of all the gold obtained by its means might, in fairness and good policy, be charged by the Government. On account of the large commercial and industrial interests certain to be benefited b. 7 the investment of capital in successful gold-mining, the proposals we suggest should, we think, be worked into the Government's policy with respect to the use of water-power on goldfields. As this is our reasonod and sincere conviction, our sympathy is honestly, and on grounds of piiblic policy, \vith those earnest and enterprising colonists who— on the West Coast and elsewhere throughout the dominion— maintain that "the imposition of any charge, cost, or tax whatever, upon water-power used for mining purposes — and especially for pumping water for sluicing — is an unjust discrimination between the ordinary gravitation system and the far more expensive means of delivering water upon high terraces, by electrical pvimping." We think that the reasons set out in the earlier portion of this article fully justify the statement; and therefore we further think that, on grounds of public policy, the people of Ashbur ton and other producing centres would act wisely in constitutionally joining forces with the people of goM bearing Westlaiul, with a view to persuading the Government and Parliament to soe the whole subject in the 'ar ;^e clear light of commonsense and of the commercial contingencies. On the "West Coast they have for some time been proposing to use the water running to waste in the rivers for power purposes, and to pump the river water on to high alluvial terraces for mining operations. It is said, however, that the Goa eminent charges, or wishes to charge, an excessive rate for the right to lift the waste water, and that this determination or disposition on the Government's part- is literally preventing the investment of a large amount of capital in gold-mining. Indeed, it seems that, in one instance alone, a syndicate could raise from £80,000 to £109,000 for the purpose, if water rifthts were granted by tho Government on reasonable terms.

If this is really the case, surely a very grave mistake is being made by the Government. Anyhow, as we have shown, the whole country stan'ls to gain by substantial developments in the mining industry, and by the use of the State's water power being given — on conditions such as those we have indicated — to those who are e'li'tuced, 5r who wish to engage in it. For these