ELECTRIC POWER

Dominion, Volume 13, Issue 266, 4 August 1920, Page 7

ELECTRIC POWER

CONFERENCE OF BOARDS

NEW LEGISLATION

ADMINISTRATION PROBLEMS DISCUSSED A conference of representatives of electric power boards already constituted in. different parts of Now Zealand and also of representatives of those districts in which boards are about to bo constituted I was held yesterday. ' The Minister of Public Works (Mr. J. G. Coates) presided. Tho purpose of the conference was to consider the proposed amending Bill ; to ba brought down by the Government, and to consider other matters connected with tho State supply of electric power under the Act. Delegates were present representing power boards as follow:—. Southland, Thames Valley, Cambridge, Central To Awamutu, Wairarapa, Banks Peninsula, Springs, Ellesmere, Teviot, and Wairoa (Haw'ko's Bay). Provisional committees represented were:—Hamilton Borough Council, Pnlmersten North, Eangitikei County Council, Dannevirkc, .' Blenheim, Nelson, Bullcr County. Ashy ■ burton Power Board Committee, Southland Electric Board, North Otago League, and Otago League. A Policy Statement. The Minister, after Velcoming Alio dele-, gates, read a statement which reviewed the past operations, and outlined the future proposals. "Tho electric power boards," said the Minister. "wi}l constitute a most important link in the hydro-electric developments of the Dominion. In the course of the constitution of the nino power boards already formed small difficulties have arisen from time to time, and a draft Amendment Bill has been drawn up dealing with these matters. In considering the proposed amendments it has been suggested to me that the various power boards would find it advantageous to make direct representations as to their position and difficulties, 'and I have, therefore, selected this occasion to give them the necessary opportunity io do so. "The financial importance of the hydroelectric developments may- be" judged ; from the estimate given in Mr. Parry's report of ..£7,000,000 for the North Island system. At prese'rot prices, this. woTk will run to over .£10,000,000. And the South Island schemes will cost as much , again, so that the' developments immediately in view' will place the outlay on hydro-electric powor on. a footing with ■that' of the Tailway and the telegraph systems of the Dominion. This is the outlay necessary by the Government alone in carrying out the transmission lines to the main'centres of distribution. An expenditure approximately equal ill amount is required to distribute the power, io the various consumers through* . out the country." , ... The Minister proceeded to deal .with the requirements of hydro-electric power districts, as to? their size-and composition, and he explained tho reason for a fceheme for the mapping of tho wbolo Dominion for the purposes of hydro-cloc-tric development. In order to ensure that no district is left isolated, it would be necessary in future that petitions for, tho formation of power board districts should be submitted to the Minister before being circulated. . ■'.

Mr. Coates went on to tell something of the provisions of the new Bill to come before Parliament. The limit of remuneration to the chairman had been cut out, having previously been ,£2OO, but the amount to be given must'b'e subject to the approval of, the Minister. The last portion of the statement of the Minister gave some interesting estimate of the amount of money to be saved by the utilisation of water power for the dmduction of .'current.. ' ! Money to be Saved. •• Returning again to the general results of the, distribution of hydro-electric power, said Mr. Coates, tire, normal total, consumption'of'coal in New Zealand is about 2,500,000 tons per year, worth over' ~£6,000,000 delivered into the boiler tires. Of this 20 to 25 per cent, is used' on the railways and coastal shipping, and probably another 25 per cent, in domestic fires, 'gasworks, and in direct heating, which can be done more economically by coat fuel than by hydro-electric power, leaving about one-half, or 1,250,000 tons (worth over 'which is directly replaceable by electric power. In addition the firewood which can bo replaced, and particularly the labour j n getting and cutting such wood on the farm, is probably worth .£250,000 or more.

"The value of the mineral oils'(bensine, kerosene, and motor spirits), imported mainly from America amounted in 1918 to. £1,120,000. Of this at least . one-half, consisting .of kerosene for lighting and kerosene and benzine used in stationary engines and city delivery lorries, will be replaced by n fairly complete 6upply of hydro-electric power. The annual saving available lias-' ' ed unon the present fuel consumption is thus:—i -. ■ ■ Coal £1,000.000 Firewood 250,000 ; Mineral oils 560,000 . .■■'■-. •.. i ; — ' ■ ' .£3,810,000 "The normal extension of the industries during the nost five years and Ina general facilities as soon as electric power is available in-such directions as domestic sweeping and washing, electrochemical manufactures and steel smelting, limestone- crushing, arid a hundred end one such industries will result in a gross saving to the Dublic of quite double this amount. We are thus dealing with the early stages of ah industry whir-n has scope to grow to enormous proportions, and in tho consideration of which this conference marks an important step.' On the motion of Mr. Rodger, tho Minister was very heartily thanked for Itis address, Coming Legislation.' The legislative proposals of tho Government as submitted to the conference dealt mostly with detail questions of administration. One important pre posal regarding votins on any proposal ' to borrow money for hydroelectric powers was that at least Ihroc-fnths of tho total number of valid votes recorded at the poll shall be required to carry a loan proposal. It is suggested that a board may.make and levy rates under the principal Act by special order, and not otherwise. Provision is made- for tho collection of rates by the local bodies, or alternatively by the board itself. In the event of a local body wilfully failing, neglecting, or refusing to ooUect the rate, the amount of tho uncollected rate, it is suggested, shall' be deemed to bo a debt, owing by 'the local authority to the board, and recoverable at 1aw.... Provision is to be made for tho mating of by-laws. The penalties suggested are a maximum fine of .£SO, and of .£5 pel day for a continuing offence

Loans and Finance. Mr. Bodger submitted the following remit: "That the rate of interest that may bo paid under the Electric Power Boards Act may be increased." Ho urged that financial conditions in tho world had greatly changed since tho pnssing of the original Act, and it would not be any longer possible to borrow at the rates mentioned in tho Act.—The remit found general support, and it, was oarriod. Mr. Eodger moved also that the Government should guaranteo 'the loans negotiated by duly constituted, electric power boards. The proposal was discussed with some keenness. It was urged that .the Government could obtain the money much more easily, and could administer-the business more economically than the local authorities could ever do the work. There was some slight opposition from Palmeraton on the ground that if the Government took control o£ finance the initiative of local authorities could bo considerably clipped.—The remit was adopted. A proposal from Thames Valley that provision be made for members' travelling expenses was submitted. The plea was that the present allowance of 16. per mile "one way" was not adequate, and that mombers ought to be allowed thoir bare expenses. The Minister said that if.the motion were carried tho demand for adequate allowances would come from all local bodies, and the scheme might break down. It was well recognised that men fating poeiticna on koal ixidiea

incurred quite heavy expenses whiob they had to pay themselves, and it was found i-hat they did their work quito well. He advised that tho remit be dc ferred, and this course was followed.

It was agree dthat local bodies owning power-plants be empowered to sell to powor boards for their districts. The present law is that the boards now have powor to buy, but there is no legislation authorising a local body to sell.

It was agreed, again on Mr. Rodger's motion, that the Customs dut ! cs on electrical plant and materials imported by the power boards ought to be remitted. li\ w : as pleaded that a power board ought to bo placed in the same position in regard to duties on machinery as tho Public Works Department. Distribution Questions. A proposal dealing with tho establishment of power board districts was submitted by Tc Awamutu. The proposal wn3 that instead of the prrsent cumbrous meilhod 'of obtaining a petition of ratepayers for submission to the Minister, it should be sufficient to obtain special orders passed by all the local bodiea within the area. It was argued that this procodure would be more speedy and less expensive, that iihero was no risk of ratepayers being coerced in any case, because they had ample protection in the poll'to be taken beforo any money could be borrowed for the work. If it should happen that the local bodies «er« not unanimous, the people concerned could still have recourse to the petition method already provided for in the Act.—This resolution was agreed to.

A'remit of some technical importance wns that moved 'by Mr. Toogood on behalf of Te Awamutu: "That it is desirable that tflie policy of the Department shall be to deliver current to the centre- or tho board's area, and not to the boundary/as at present, but in no case snail a separate feeder line be constructed for this purpose which will have a greater length than three miles for each K.V.A. of prospective maximum demand. The maximum length of such feeder line shall- not oxceed fifteen miles." It was pointed out that some local bodies might! bo -under gravo disadvantage under the present law, because it might happen that the power would be delivered to the boundary of a remote part ofvne district, and the distribution occts would be proportionately greater. The remit was carried, and the Minister promised than! the matter would have his careful consideration. "Two Chances." The most startling of all the remit* sent forward t)o the conference was: "That the Cambridge Power Board, in conjunction preferably with other boards, is desirous of,purchasing Forahora from the Governmenitl." On the Ministers assurance that "You've got two chances of getting it—ycair own apd Buckleys, the mover withdrew the remit.

Methods of Control. Palmerston North, through Mr. B. H. Crabb, submitted the following series ot proposals:— ... . „,. (a) That local bodies may by resolution agree to join any other contiguous local body or bodies for the distribution of electric .power. ' (b) That local bodies shall by adver-tisement-notify their respective.ratepayers of such intention, and a period must bo given during which the ratepayers concerned may, if they think fit, petition for an electivo electric power board, as at present provided for in the Act. (c) That failing a petition being sen*, in local bodies to apply to the Government for appointment as an electric board of control in districts concerned. (d) That powers be given of co-opting with committees of local bodies, to include such men who from business ot other reasons cannot join a, local way, and if appointed their position to bo ot an advisory nature only. . , Mr. Crabb argued in brief that tho local authorities were the most efficiently Kfanised bodies for the control of the distribution of current within their, boundaries, and that the local authorities, in boroughs, at any rate, shoud be the power boards' for their •districts. Mr M. Wells said that Hamilton did not want to be connected with any power hoard. It was thought that HamiWon would be able to use all the power aval • able for Tears to come, and the borough did not want to set up any authority other than it now had. The Palmerston- idea-would suit Hamilton, ■- • Mr. A. W. Rodger (Southland) said that the isolated'point of view of Hamilton indicated a selfish spirit, which was not to be commended. ' Surely, Hamilton depended forj'ts existence on the eurrounding country, and the town should stand by that country. Tho Minister said that the proposal seemed to be to allow a little borough to dominate a whole district, and so makq it impossible for a power board to bo-formed. The position to be taken up by Hamilton was not a fair one, The proposal .was to leave a dead area round the town, and to leave die fanners and. the industries within that-area without assistance. And it was on the success of the farmer and the success of the dairy.-industry' that the 6nccess of hydroelectric schemes must .depend. Only by thickly-populated towus taking in a pioportion of surrounding districts less densely populated could a naliou.nl schemo be developed., Hamilton and Palmersf.on were, taking a local view, but he had to take a wider view. The policy had been very carefully considered. It had been pointed out, however, that where the policy was going to inflict hardship and prevent progress, the Government must consider tho application of the policy. Tho Government did not wish to be unfair, but it did want to develop power. He was, personally, not in favour of the motion. He thought the plan proposed would out to the detriment of a numlier of pcoplo who were entitled to this commodity that should.be supplied. (Applause.) " Mr Crabb, in reply, denied that his proposal was due to selfishness on the part of boroughs. It was due, he said, merely to a desire to distnbuto electricity with less friction than was possible under present proposals. The present plan was' to arrange for a number of local bodies to forai a committee, or board, aud work together-for convenience. He did not believe there would be any inconvenience. Nor would ho accept flue argument a'bout -'dead areas round the boroughs. In order to enable a local body to be constituted. an authority under the Act, an prder-in-Coun-cil would bo needed, and the Goveriv ment would scrutinise .the amount of territory to be taken in, :n order to ensure "that the boundaries woro carneu out to include a fan; share of .back country. In any case, the boundaries oi adjoining local bodies were coterminous, so that in tlfo event of adjoining local government districts . deciding to aoJ, -each for its own territory, there would be no dead areas. Ho told tho conference also that his scheme was alternative merely. Palmerston "Tfad no desire to escapo its due share of burdens. He failed to see why. local bodies could not lx> charged with the responsibility and given power to do the work, lhe ratepayers were fully protected in either case, in that they had to agree no the raising of loan moneys. , The remit was rejected on the voices.

Decide by Lot? There is a scramble already .among districts for preference in the establishment of hvdro-elcctric schemes. A. novel proposal to get over this trouble was suggested by Marlborough, through Mr. B. J. Cooke, who moved: "In order that political on other undue influcnco may not unduly obtrude itself that larliament be asked to determine that the order in which such works shall bo executed shall be determined by lot. in public by s6ine person to be appointed by the Governor." The proposal found no favour with the conference. The big, influential communities with plans already mado and with fair prospers ot early realisation of their hopes, wore not content to put their chances to the hazard of a lot. The proposal was defeated. Other Loan Questions, Mr. J. London (Dunedin) moved: "That all moneys required for 'tho development of hydro-electric energy ]» provided by the Government, subject to adequate safeguards." In support of his proposal be pointed to tho fact that the money required for reticulation was often more than the amount required for headworks and power-lines. 'J he Government could handle the business with greater economy than the local boards. If the Government did hot do this the boards would be paying different rates of interest, and often unnecessarily high rates. The proposal found general support. | Ono argumont was that a board must I borrow, if it went on to tho London market, its whole requirement, say, a I million. It would not need that mil-

lion for three years, and some part of the money would have to be reinvested at loss. If tho Government raised all tho money, in large sums from year to year, it could hand over the amounts required to the boards as tho need arose. Tho motion was carried without opposition, and it was arranged that a deputatioh wait on, tho Minister of Financo to-day. Mr. Todd (Dunedin) moved: "T]iat any losses that may have accrued in tho first fivo years after completion may be. chargeable to capital." Ho said tliatthe experience in Dunedin and Coleridge schomes had beon that in the first few years thero wcro bmall losses, and that in succeeding years the profit marcftsod. —This proposal wan oarned.