HYDRO – ELECTRIC POWER

Dominion, Volume 14, Issue 265, 3 August 1921, Page 6

HYDRO - ELECTRIC POWER

PROGRESS OF DEVELOPMENT

MINISTER SURVEYS THE SITUATION ARAPUNI SCHEME MUST WAIT , The Minister of Public Works (Hon. J. G. Coates, whohas just returned from the Auckland district, has made an important statement regarding hydro-elec-tric development. He has decided definitely in favour of the Arapuni scheme as the main source of supply for Auckland. The ultimate capacity of this scheme will be 162,000 horse-power. But development at Arapuni must wait until the financial situation improves. The I Minister states that at present there is no money market open to the Government on terms which would warrant funds being raised for Arapuni, or any other public works, no matter how urgent. When interest charges are more favourable the Government will endeavour to raise a special loan for Arapuni. Proceeding, the Minister mentioned some of the various schemes and commitments in New Zealand. He said the Government had advanced -£200,000 to the Southland Electric Board towards the development of 8000 h.p., the board having to refund the money. At Lake Coleridge 8000 h.p. was now developed; 4000 h.p. additional would be available this year, and another 4000 h.p. next year, making',a total of 16,000 h.p., while plans and specifications were out for developing it after 1923 by another 2000 h.n. At Horahora, 8000 h.p. was generated now, and provision was made for a further 6000 h.p., 3000 of which would bo put in hand as soon as the preliminary arrangements were completed. and Should be ready in about twelve months. At Mangahao they were proceeding at once io develop 24,000 h.p., which should bo ready by the end of 1923. At Waikaremoana 1000 h.p. was in course of construction. At Waipori 8000 h.p. was now being developed, and arrrangements were being made for extensions bv co-operation between the Department and the Dunedin City Council, to utilise an additional 8000 h.p., to b© (Installed within two years. Financial Obligations. Mr. Coates quoted the following list of commitments: — Southland—Spent up to March 31, 1921, £200,000; commitments to March 31, 1922, £50,000. Lake Coleridge.—Spent up to March 31, 1921, £568.-000. Commitments to March 31. 1922: Headworks, £56,500; transmission, .£60,000. Commitments to March 31, 1923: Headworks, .£150,000; transmission, £60,(£0. Commitments to March. 31, 1924: Headworks, £200.000; transmission, £60,000. Total for throe years. .£526,500 Horahora.—Spent up to March 31. 1921, £295,000. Commitments to March 81, 1922: Headworks, £50,000; transmission, £150,000. Commitments to March 31, 1923: Headworks, £50,000; transmission, £150.000. 'Total for two years, Mangahao.—Spent up to March \U, 1921, £143,000. Commitjnents to March 31, 1922: Headwork,*, £275,000; transmission, £75,000. Commitments io March 31, 1922: Headworks, £300,000; transmission, £lOO.OOO. Commitments to March 31, 1924: Headworks, £200,000; transmission. £125,000. Total for three years, £1.075.000. Waikaremoana—Spent up to March 31, 1921, £3OOO. Commitments to March 31, 1922, £60,000. Commitments to March 31, 1923, £50,000. Total for two years. £llO,OOO. Otago.—Commitments to March (31. 1922: Hoa.dworks, £50,000; transmission, <£30,000. Commitments to March 31, 1923: Headworks, £150,000; transmission, £120,000. Commitments to March. 31, 1924: Headworks, £100,000; transmission, £lOO.OOO. These sums totalled over £3,500,000 for commitments for developments to the end ’of 1923-4; or, to 1929, £4,715.000. Arapuni and Waikaremoana.

The Minister explained at some length why he did not consider the immediate vigorous prosecution of the Arapuni and Waikaremoana schemed to bo desirable. He laid down the following points to bo observed • ' connection with the Ara- » ini scheme:— "(1) The work should not bo commenced until sufficient financial provision is assured to commence and complete the job in the shortest reasonable time. “(2) The work should bo done in five years. If spread over ten years, interest at 6 per cent, (compound) will amount to £666,548, as against £337.528 for fivo years on the capital involveu. / “(3) Any delay in carrying out the works should bo now, and certainly not after the work is onco started. “(4) All smaller schemes in ths Auckland district to be put to one side and an endeavour made to develop Arapuni. “(5) Material and cost show a. downward tendency. « “(6) It. is unlikely that the rate of interest on borrowed money will remalp at its present high level for any long period of years. “(7) The Department’s rate of expenditure is now and will bo for the next three years on ’ hydro-electric works in New Zealand approximately four times ths rate of expenditure in any previous year. "In view of tho foregoing, I wish to say ulat until I am certain of financial provision, I am unable to recommend any attempt at putting the work in hand. The Department realises the importance of this national work to Now Zealand and to Auckland especially. "With regard to Waikaremoana, tho position is very much tlio same, though, owing to the absence of expensive headworks, this scheme lends itself to progressive development. Still the financial position must be clear before tho main development there can be pushed on. It win be seer, by the before-mentioned figures that the Government’s commitments alreiiuy made for hydro-electric works are large, and until I am certain tho complete financial arrangements are made I am unable to say when this work will be put in band.”