The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, MARCH 1, 1928.

Hokitika Guardian, 1 March 1928, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, MARCH 1, 1928.

HOW THE MONEY GOES. It is only some ten years since the Electric Power Boards Act came into force, and in that short span of years over twenty-three millions of money have been spent on electricity. It might he deducted that this huge outging in s.> short a time has had some effect on the financial plight of the country. A very substantial portion of the amount represents money which has gone out of the Dominion for plant and material, and New Zealand is the poorer accordingly. The expenditure is still going ahead merrily, so that a considerable leakage of capital must he going on also, and assisting in some degree to maintain the financial stringency which is rather hampering the general situation at present. We are told that electricity is now available to more than ninety per cent, of the population, but tbe supply is still far fram equal to tbe demand. There are some forty eight power stations in New Zealand, with approximately one hundred electricity distributing authorities. The actual outlay to date on the schemes to generate electricity has been nineteen millions, while it has cost according to estimate over four millions and a half to wire up consumers’ premises. It is obvious that the expenditure is still far from finished, even if 90 per cent, of the population have electricity available.

The gross expenditure still to be fneed to complete major schemes and provide reticulation services, will be far in excess of a ten pel- cent, addition to cover the full population. It is no doubt'n fact that hundreds or perhaps thousands of petrol and steam engines have been replaced, but here again the money in the bulk has had to be si nt out of the country. There is some hope that the relative reduction in the amount of imported petrol due to the substitution of electricity, will cause a favorable change in the trade balance. but the electric trams being superseded by tin- petrol driven bus, there is not much hope of the expectations being realised. In fact, with the import of motors and petrol to supply power, there is a big drain on the country’s finance, and along with the capital cost of electric power development, there must be a serious out - (1 iw of money from the Dominion. America and Canada arc often quoted as demonstrating the success of electric development, but then so much of the plant is manufactured within the country, that there is not the economic loss in money being sen 1 away as here. Our secondary industries arc not tar enough advanced to check the flow of capital, and by the time they would lie. the chief development of power to. meet the needs of the country will in the main have been completed. Kinetic power however, should in the end have its effect in the industrial development of \ew Zealand, but at the present stage and for some time fo come, it can be seen that the capital cost has a draining effect on the finances of the Dominion. Consequently this is one of he avenue.- whereby a loss is being felt through the need to send money overseas to pay for th" plant, and is a contributing factor to that degree of stringency which makes the film's harder than they would be otherwise.