ELECTRIC POWER.

Press, Volume LX, Issue 18219, 1 November 1924, Page 14

ELECTRIC POWER.

FLAT INTEREST RATE. BURDEN ON COLERIDGE. (SPECIAT, TO "THE PRESS.") WELLINGTON, October 31. Mr J. McCombs, speaking in the debate on tho Public Works Statement, which opened in the House of Representatives this afternoon, protested against what he called a very grave injustice which was being inflicted on Canterbury by the new method of charging interest on hydro-electric undertakings. Canterbury was being robbed of the advantage secured by the Government borrowing money at a low rate of interest when the Lake Coleridge scheme was initiated- For it £350,000 was borrowed at 4 per cent. Later £119,000 was borrowed at 4} per cent., and a smaller sura at 5 per cent. The Lake Coleridge scheme was now being charged £5 8s per cent, for this money, because tho whole of the money which was raised for hydroelectric undertakings had been pooled and -each undertaking was being charged with the average cost, which worked out at £5 8s per cent. The method of charging £5 8s per cent, for money which should only cost 4 per cent, would have an undoubted effect on the whole of the country districts in Canterbury by postponing the time when prices to Power Boards, could be lowered. Christchurch Council Criticised. Mr Isitt said he did not know what the Mayor and Councillors had been doing. If Canterbury had borrowed at 4 and 4* per cent, surely they were entitled to the* benefit of that till tho end of time, or until the loan, had been repaid or written ofE. The Hon. J. G. Coates interjected that Canterbury was paying exactly the same interest as everyone else was payingMr Armstrong spoke in support of the point raised by Mr McCombs. Canterbury, he said, wbb going to havo its taxation increased to make up for the hopeless blunders of other people in different parts of New Zealand. That could not possibly be a success. Mr Coates: What parts? Mr Armstrong (after a pause): In various parts. Mr Coates: Which one?

Mr Armstrong (after a further pause): The one we are going to visit on Monday. Mr Coatcs: The honourable gentleman ought to stay at home then. Mr Armstrong objected to the Government letting contracts to wealthy monopolists from outside New Zealand, such as Armstrong Whitworths. The local firms should be given a chance. Mr Lysnar: They had just as good a chance. Mr Armstrong: No, they have not, .because they are not in a very big way. In any case they should not let such large contracts. He would like to see a party and a Minister of Public Works in this country that would give a chance to co-operative labour in its true sense. Mr Coatcs: In what form? Mr Armstrong did not reply. Mr F. Langstone took quit© an opposite view to that of his fellow member, Mr MoCombs. He strongly urged that the Minister of Public Works was right in obtain'ug an even price for hydro-electric power all over New Zealand. If Canterbury complained about paying its share of interest on the general development then it should be charged up with the great cost of the Otira tunnel and made to pay extra faros and freights on its railways that were not paying. He hoped the Minister would not bo carried away by the "buncombe" talked by the Canterbury members.