'NATIONAL DISASTER’

Sun (Auckland), Volume IV, Issue 1006, 24 June 1930, Page 10

'NATIONAL DISASTER’

GOVERNMENT MUST HELP WITH COST OF POWER MR. HOLDSWORTH’S ADDRESS The Auckland Power Board expects that the Government will meet the difference in the cost of power under the conditions now prevailing, and assist in immediately providing additional plant for the needs of the district. This statement was contained in a report presented by Mr. W. J. Holdsworth. chairman of the Auckland Power Board, to a conference held today between members of the board and the Auckland members of Parliament. Jn contending that the Government should assist the board to meet the new* conditions, Mr. Holdsworth said that a serious setback had been given to the electrical industry and to development. This would take years to recover. “The Arapuni failure must be regarded as a national disaster,” he said, ‘‘and while this board is ready and willing to carry its share, it is surely only equitable that the position should be treated as a Dominion liability.” • It is common knowledge to a. j present that the Auckland ElectricPower Board entered into an agreement with the New' Zealand Government to take the whole of its supply from the hydro-electric station constructed at Arapuni,” said Mr. Holdsworth. “This agreement is a very comprehensive document, and takes into consideration that tin' whole of the electrical requirements of this board would be undertaken by the Government; and in consequence of this, pending the erection of the Arapuni station, and contingent upon this board entering into an agreement to take the whole of its supply, that the Government would erect transmission lines from The Waikato to Auckland, and would supply this board with 2,000 kilowatts from its Horahora station. This agreement was entered into on May 10, 1922, and the Government undertook to have tine Arapuni station completed and delivering power by April 1, 1928. MANY DELAYS “Unfortunately, many delays occurred which placed the Auckland board in an extremely difficult position, and owing to the growth of its load it was forced to incur an expenditure of approximately £75,000 by way of installing additional steam plant to meet the demand; also a very large amount of the capital necessary in order to make the change-over to water-power remained non-productive for .a considerable time. The total expenditure involved in this change-over is approximately £500,000. “The addition to this extra steam plant enabled the board to pursue its policy of building up its load and to encourage the use of electricity in every possible direction, thereby establishing as big a load as possible to be transferred over to the Government supply. TRANSFER TO ARAPUNI “Upon completion of the second unit 5n the Arapuni station, the Government requested this board to transfer its load on to the Arapuni supply, but the board did not feel justified in doing so until the third unit was brought into operation, as it considered that the risks of interruption with only two units were too great, and, in consequence, kept its King’s Wharf steam station in full operation until the third .unit was installed at Arapuni. “We received advice from the District Electrical Engineer to the effect that the third unit was ready to be brought into commission and that the department was ready to take over the whole of cur loading on February 23. 1930. “The board arranged accordingly to close down its King’s Wharf steam station, allowed its coal contracts to lapse and dispensed with its King’s Wharf staff. “All went well in this connection until the middle of May 1930, when trouble developed on one of the sets at Arapuni and this Board was requested to put King’s Wharf steam •station into partial operation in order to permit the shutdown of this machine for impairs and alterations. “Following this, it came as a very great shock to this board to be informed that the Arapuni station must cilose down indefinitely and we were informed that we could not expect any assistance from the Government by way of power supply and that the amount of power available from Horahora and other sources, was insufficient to meet the demands of the provincial boards. “This pronouncement clearly indicated to this board that Auckland must provide for itself. “In order to do this, we have been forced to impose restrictions approximating 3.000 kilowatts between the hours of 4 p.m. and 7 p.m., and even with these restrictions our King’s iWharf station is called upon to carry .very heavy overloads. The amount <»f plant available at King’s Wharf is 26,000 kilowatts and it is carrying 29.000 kilowatts over peak periods on most nights during the week and is being forced to the utmost. “It cannot be expected that this condition can last indefinitely and the smallest thing going wrong in the station is sufficient o place the whole system in trouble. It is needless fpr me to point out that to operate a steam plant under these conditions is extremely uneconomical and must result tonanee and repairs, particularly when . one considers that the time available during slack periods is insufficient to carry the work out thoroughly. TROUBLE WITH COAL “We are experiencing difficulty in obtaining sufficient quantities of the right class of coal for which this station is designed to operate, and since we allowed our contracts to lapse, on the closing down of the station, we find ourselves placed in the position of having to pay 10s a ton for slack coaL^ as against 7s l*d at ti e mine. average consumption of 3.U00 tons a A' eok. it would represent a figure of £20,000 a year. As pointed out previously, it is extremely unlikely that our demands can be met with slack coal, and we will, therefore, be forced to purchase a considerable amount of overseas and Southern coal, Avliich will further very substantially increase our coal bills. It might be of interest to mention that the freight charge on coal from the Waikato mines iiverages 11s 3d a ton. From the foregoing it will be seen that the Auckland board, although the largest board in New Zealand, and the largest customer of the Public Works Department .is placed in a very unfavourable position when compared with any of the other boards affected by the stoppage of the Arapuni work, who still continue to purchase their power at the old contract rates. “Everyone must appreciate this position as being extremely unfair, not only to this board, but to every consumer in its district, and it is one which calls for immediate consideration'by the Government. This board has many extensions to Avhich it is already committed and has entered into contracts Avith large power consumers amounting to 1.650 kilowatts, all of •which it undertook to supply during the next few months. “Unless the present position is handled quickly, it cannot but result in a very detrimental effect to the Avholo of the industrial progress of the disrriet. Already we find that Ave have lost quite a number of consumers in the industrial, commercial and (lomes*i.i , position is likely, to

continue unless we can make some definite statement as to the provisions that arc being made for correction. “The urgency of this matter has compelled my board to make inquiries abroad concerning plant which. is available for immediate delivery, and it feels that it is being forced to undertake obligations which it should nol be called upon to do, particularly as in the terms of our agreement, an.t generating plant installed is viewed strictly in the light of a standby. “My board has been forced to casl aside its estimates, which were madt

under water-power conditions, for the j , year ending March 3t, 1931. and it now j anticipates that instead of a surplus j on the year’s working, it cannot escape a very substantial loss, seriously affecting the whole financial position of the board. “It must be pointed out that at the last annual meeting the board made substantial reductions in its supply rates in anticipation of its lower operating costs under hydro-electric conditions. These reductions amounted in a lump sum to £30,700. “In conclusion, my board contends that, in the circumstances, which are in no way duo to any fault of its own. it should not be called upon to pay any more for its power under these conditions than it Avould have paid under its agreement with the Government.” The statement was read by the chairman, Mr. W. J. Holdsworth, to board members in committee before the conference was begun. The members of Parliament present, representing many constituencies of the city and the province, Avere the Hon. A. J. Stallworthy, Minister of Health; Messrs. H. G. R. Mason, W. P. Endean, C. IT. Clinkard, W. E. Parry, M. J. Savage, A. M. Samuel, W. J. Jordan, G. C. Munns, J. S. Fletcher, A. W. Hall, W. Lee Martin, F. Lye, W. J. Broadfoot, and H. M. Rushworth. Sir Edwin Mitchelson, the Hon. E. W. Alison, the Tlon. G. J. Garland, and the Hon. C. J. Carrington also attended. Mr. IToldsworth described the Arapunbsituation as a calamity big enough to be created outside party politics. The City and the province were in a precarious position, and it was necessary to acquaint the members with the board’s position, in order to prepare them for the discussion in the House. Mr. IToldsworth criticised the attitude of the Public Works Department to the board’s overtures' for a conference. Several times, he had impressed non the chief engineer of the department, Mr. F. W. Furkert, the necessity for a conference. In the face of replies from the department, nothing was left but for the board to act as it had done. The board’s position evidently had not been appreciated.