HYDRO-ELECTRIC GENERATION.

Taranaki Daily News, 19 August 1919, Page 2

HYDRO-ELECTRIC GENERATION.

(To the Editor.) Sir,—Olio might be excused if, while read-' Ing (he letter of Mr. Clarke find yotfr owil sub-leader on the above subject, when Interrogated after the style of "Folonlus, what readest thou?" He had resiled with Hamlet, "words, words." Two. more latte attempts to introduce sidewinds, to blind the . public to the real Issue, and by a strain of sophistry and arguments from pufe assumption to direct the discussion Into congenial channels for your purposes would be hard to find. In the first place, Mr. Clarke says: "I would not discuss charges on horse-power rate as quoted by Mr. Lyon." I shall be much obliged to Mr. Clarke and yourself if you can show me one Instanco where I have touched on "horse-power rates," I have consistently referred to "power board rates," or bulk current rates, and the Mayor distinctly said only power boards would be dealt with. Why should I strain Mr. Hartley's well-known courtesy to acquire Information as to house charges in Now Plymouth? They do not Interest me, and are not in the scope of this controversy, but 1 note that these so-called "reasonable charges" returned between flvo and six thousand pounds nett profit last year, from a small plant. Was it this pleasurable experience of the gold mine in electric power that led to the present effort to net nearly £IOO,OOO per annum, and the hlrth of the ambition aiming to comer the sale of electric current In Taranaki? Much criticism has been levelled at the Public Works Department because of alleged losses in the early stages of and before the Lake Coleridge scheme was at full power; but it would be just as reasonable to .state that because at one time in Its construction a large amount of work was unproductive on the Main Trunk line, estimated at a million pounds, and at a cost to the Dominion of £50,000 per annum in interest, the Main Trunk did not pay, and wa„ a failure. To judge an Incomplete scheme seems to me the poorest kind of an argument. Here are two extracts from Mr. Parry's reply to Mr. Lowe: "The Intention Is that deficits Inevitable in the early years of the undertaking shall be paid out of futuro surpluses, after providing for depreciation, sinking fund, and a limited resorve, and an Act was passed last session authorising this procedure." And, again, "as regards the suggestion that after the undertaking is properly started such a pries should be charged for current as will make the undertaking self-supporting, this Is putting the cart before the horse. The procedure adopted- by the Department Is the more buslnessllko one of detorminlhg what prices will enable power users to compete with the lowest prices obtainable elsewhere, or in any other part of the world, and to design the works on such a scale, and at such a cqst as will enable the prices so determined to bo charged and to make the business ultimately self-sup-porting. Briefly put, the expenditure Is not incurred unless the Department is satisfied that (he business Is ultimately self-supporting, apart from the Indirect benefits accruing to the State resulting from placing a cheap and flexible form of power at the command of the Individual, and also quite Irrespective of fhe large national economy resulting from saving In coal consumption" Contrast these fine and llbSrtl Ideas, Sir, with the ones you choose to advocate and support. The State Is content, having In view the ultimate gain to' the community''nt large, to take a bare Interest on cost and yet you seriously urge that your local scheme Is a desirable one for the surrounding districts, knowing full well that for an expenditure of £160,000 you are expecting to reap about the samo gross return that the Slate would expect from the expenditure of a million and a hair of money inrested in hydroelectric generation. The sum Is simple—Laki Coleridge costing £450,000 odd, returns £81,040 ; New Plymouth, costing £IOO,OOO, seeks to earn £90,000 on bulk rates alone, leaving reticulation profits out of the calculation. Tour argument that "the surrounding districts are not asked to shoulder any of the capital expenditure" is beside the point, as also is your statement, "the neighbouring towns will be able to share In the benefits that New Plymouth's heavy outlay have made possible." Prom the fact that you are unable to develop jt>our full scheme without this outside help it seems rather strange that your gratitude should take the fornl of charging nearly treble the State price for current," knowing, too, that If you floated a loan of £IOO,OOO without the backing of agreements fastening the various local bodies' power boards to receive current, it ivould bo turned down. It might be a fair Question to ask as to which recolves more benefit, you, or they? As a specimen of the means employed to jockey local bodies Into agreements, note the circular Inviting them to make early applications for power, and warning them that only a ilmlled amount was avoliable. It was discreetly kept In the background that the scheme would not provide power for over two years. Contrast the above with the engineer's report on the scheme as published, where it was predlcled ample power existed for the districts contiguous to this supply, and further said that If Insufficient there were other streamß to harness further fouad tho mountain. Probably ohe of these was the Manganui, of which, I believe, an Inspection was made, and the latest move was to extend fhclr license boundary to traverse tho Bristol Itoad and cut between a possible dam arid power-house site, while they kiteto a movement was on foot to harness this river for local requirements. These tactics are all right till they are stopped, but no monopoly of this kind should be permitted to exist in this country, and the motions stahdlng in my name are fully justified. A|l the reports that may be prepared will not alter the facts or obscure this issue, and I and others are not going to weaken in our efforts to acquire a more equitable adjustment of a most Valuable adjunct to the comfort and progress of tho general public. If the objects of Mr. Clarke's lotter and of your sub-leader are to gain time In this matter your efforts are being wasted. For those Interested afid myself, I may say that this movemeht is not to lie shelved, and now Is the time for action. With the writer, Young, we realise that "to bo wise too late Is the eXacteSt defthltlon of a fool.—l am, etc., J. H. LYON, Waltui, August 14. TOur correspondent does not strengthen his case by impugning the motives of others or employing a threat as to what ho and his friends are doing or what they will do. Hid attitude Is not conducive to the Interests tit thoso for whom ho expresses solicitude. Rather tho reverse. If his line of action were generally followed, there would bo no cheap electricity for outside districts for ten or fifteen years, until outside Government pow?r Is available for Taranakl. It Is Idle comparing Lake Coleridge rales wltli the Mfe? New Plymouth Is charging Inglewood, for foleridce supplies Christchurch with 8!;oo hp whilst New Plymouth hns contracted to supply Inglewood with 300 hp. over a period of five years, at the expiry of which tho charge is to be reviewed. Manifestly the greater tho amount tho cheaper tho price. Tho whole of Taranakl would not consume 3ISOO h p. to-day. Coleridge is not a business proposition. it has lost a great deal of money, and is still losing money, which the Consolidated Fund makes good, and It Is not surprising to learn that the whole of the rates are about to be reviewed with a view Ito molting the concern pay its way. New Plymouth obviously cannot Incur additional loans for the necessary extensions for outside districts unless it can secure an assured and fair return. To talk of t?ew Plymouth seeking to earn £(16,000 Is too ridiculous for words If It can find a market for the current and obtain a revenue (not n profit), of half that amount in thirty years it will do Immensely well—and so will the province. We do not know whether the £l2 per h.p. agreed upon between New Plymouth and Inglewood Is a fair rate—that is a matter tot experts to say—but we do know it represents a considerable saving over Inglewood's present generating cost, also that last vear Christchurch eily secured a return of £l4 per hp. from the sale of Us current, which shows that Inglewood, consuming one-twelfth of that amount, will hare a margin to come and go upon even on Christchurch rates, which \ are recognised as being remarkably ehieap. It • seems to us, therefore, that Inglewood has made u very fair bargain. We can join issue with Mr. Lyon In his desire to have the current availible for outside districts at the cheapest possible rate, for the cheaper it is the greater will bo the consumption, and the better for all concerned, but lie should not let prejudice against, and misunderstanding of, the New Plymouth scheme lead him to mIBS tho substance, In the shape of power that can be made almost Immediately available, for the shadow of Government power that rpay 1 or may not come in j our lifetime, or of Government control of tlie New Plymouth scheme, which would probably I to ffipniimwig mUrtA—*4. 1