Millions Sunk in Electric Works

Sun (Auckland), Volume 1, Issue 52, 24 May 1927, Page 12

Millions Sunk in Electric Works

ADVERSE TRADE BALANCE WILL RETURN BE SUFFICIENT? (From Oitr Resident Reporter.) WELLINGTON, To-day. F° R every million the Public Works Department spends in electric works, power boards spend another million in reticulation, and consumers contribute a further million in Installations and equipment. This fact is said by Mr. H. F. Toogood, chairman of the Power Boards’ Engineers’ Conference to-day, to be responsible, in part at least, for the excess of imports over exports during recent years. The development of the electrical industry in New Zealand, he said, in his presidential address, has perhaps been the major cause for what is stated to be the adverse trade balance, but, as explained recently by the Minister of Finance, appearances in this connection are deceptive, and for some

part the goods bought in excess of the balance of trade are assets. The obvious question was, “Do the assets represent a sound investment both for the individual and the nation?” The country as a whole is making a financial sacrifice. Will the country as a whole in return reap adequate benefits?

Mr. Toogood personally believed that the nation was right in pushing the present development to a state of completion, but he doubted whether an accurate indication of the position could be secured without the aid of economists. He urged a critical review to decide whether the benefits offset the financial liabilities. It was believed that production was increased and costs reduced by electricity in primary production, but to what amount he could not say. “If a critical examination of the financial conditions of the electrical industry is made,” he said, “I believe we can answer that we have well taken care of the capital placed at our disposal, and that the assets we have created are of full value to the nation ”