NORTH v. SOUTH ISLAND ISSUE RAISED BY NATIONALIST

Grey River Argus, 4 September 1948, Page 7

NORTH v. SOUTH ISLAND ISSUE RAISED BY NATIONALIST

Southern Hydro Boost Sought

P A WELLINGTON, September 3. In the House of Representatives to-day, Mr. J. R. Hanan (Nat., Invercargill), discusing hydro-electric development. said the Government conceded that when the Waikato scheme was completed the end of power developments in the North Island would be in sight. No effort ‘ was being made to estimate the maximum demand and to develop untapped power resources in the South Island to arrest unbalanced growth of North Island cities The Minister of Works (Hon. R. Semple), saw the day when power would have to be brought from the South Island to the North Island, or factories taken to the South Island. Why wait for chaos and dislocation either through theft of South Island natural power resources or mass transportation of factories and workers. ) Mr. Hanan said he charged the Government with bolstering the North Island to its eventual industrial zenith and decline. Just as political expediency and ignoring of planned development had been responsible for lack of balance in the housing programme, so also was there the same position in industry. He thought the stage had been reached when a Royal Commission must determine the best use of the North Island's natural resources. More than three-fifths of the total power was south of the Waitaki river and less than two-sevenths was in the North Island. That being the case, he thought it could fairly be stated that to transmit power from the South Isla'nd to the North Island (would amount to considerably more than the costs of generating that power. After discussing various South Island power schemes which he / thought were inadequate, Mr. Hanan said the Minister of Works should be frank —the South Island would be in the electrical cactus unless he got on the job. Referring to the development of Manapouri and Te Anau hydro schemes, he said the lowering of the exchange rate made the proposition less attractive to overseas interests, but at the same time lowered the cost of imported equipment, should ’the Government decide to utilise the pofrer. . Mr. Hanan said that that project was the biggest in the country comparable in importance to the discovery of refrigeration, and should be proceeded with so that the vast power potential—l,ooo,ooo horsepower—would be available, after the smaller schemes were in full use. Indication had been given, however that nothing was likely to develop so far as the establishment of an' aluminium industry in the area was concerned.