POWER SUPPLY FOR SOUTH ISLAND

Rotorua Morning Post, Issue 5323, 8 February 1947, Page 2

POWER SUPPLY FOR SOUTH ISLAND

♦— j LAKE MANAPOURI ; i PROPOSED PETITION TO 1 PARLIAMENT. i — T- ! Frustrated in their efforts to deevlop what was described in their I annual report as the most promising j secondary industry in the Dominion's | history by the "dog-in-the-mang-er" ! policy of the Government, the directo4rs of New Zealand Sounds HydroElectric Concessxons, iLimited, propose to petition Parliament at its- j next session for cohsideration of its j claims for a fenewal of its licence. J This, it is stated, would result int j the development of a liuge electrochemical and electro-metallurigcal industry involving- millions of pounds in investment, extensive labour requirements, and export markets for products manufactured at unprecedentedlyi low cost throxi'gh the use .of cheap waterpower from Ladce Manapouri. The company has written to .tlie Southland Progress League asking for suppojst for the claims heing made in the petition to. Parliament. The policy for several years past has been merely to keep the company in existence because of the laek of a licence to proceed. "The attitude of the Government in refusing a renewal of the co.mpany's hydro-electric licence to harness the 'water-power of Lalce Manapouri is aboslutely indefensible," says the report. "At no time has the Government claimed that it required these waters for its own purposes. Each. year millions of pounds woifh of water continue to pour into the sea as the direct result of 'dog in the manger' policy. In other words, the Government says: 'We do not need' it, but we are determined not to allow anyone else to use it; let it run to waste'." Company Formed. Commenting on the report, Mr. Hunt said that the company was formed to get surveys and reports, draw up development plans and so on, and to finance someane to r,aise the capital necessary to put the plans into operation. Much had already 'been spent in seeuring surveys by hydro-electrical experts, engineers, geologists and the like, and Sir Douglas Mawson, who was a distinguished physicist, chemisi and geologist, ihad in 1928 reported from overseas that he could get £6,500,000 capital o.n terms sa^isfactory to the company and to the country. Before an empowering Bill could bc passed to make establishment possiblt under a licence issued when Mr. Coatep was Prime Minister, the Ward Government took over. That Governmeni would not comply with the conditions required and the offer of capital lapsed. However, Sir Douglas Mawson got in touch with a United States chemical firm whose resourees amounted t0 £65,000,000. The firm secured an option and sent out a hydro-electric engineer with a world-wide reputation. After thousands of pounds had been spent oi surveys and estimates, he reportet favourably on the scheme,' leaving in May, 1930, to advise liis principals Depression 1 it the world soon aftei and held up the project. Thereafter the present Government had corne int( power and refused to renew the com pany's licence, thus preventing entirely the development of the scheme Mountain of Mineral. "Meanwhile," continued Mr. Hunt "a mountain of mineral at Doubtfu Sound, containing, for one thing 7,000,000 tons of 98 per cent. limestoin marble, awaits treatment right alongside an undeveloped deep-sea all-wea ther port at a power cost, according to an American expert, of 28s ; horse-power year. "This is the biggest and cheapes block of hydro-electric power on t seafhoard anywhere in the world,'' said 'Mr. Hunt. "The company has been kept in existence hoping that tlu time would arrive when a eommoi sense policy would be adopted by thc country towardb a huge industry which could he set up 30 0 yards from deep water in Doubtful Sound, which car accommodate big overseas ships. "If the company had been going 10 years ago, as it should have been. then we would have been payins: £440,0'00 in income tax alone, plus royalties to the Government 'for usc of the water; wages on the installation and contFact charges would have been a'bout £3,750,000 (on a large part oi which wage tax would have been collected), and the value of our export:? would have risen between £5,000,000 and £10,0 00, '000 a year." The directors were confident that their petition would receive the aetive support not only of Parliament, but of the people of New Zealand, said Mr. Hunt, and m-ore particularly of the citizen's of Southland and Otago, because those provinces were very much eoncerned with th'e loss of population to the North Island. ,