LOAN PROPOSALS.

Taranaki Daily News, 30 November 1920, Page 5

LOAN PROPOSALS.

ELECTRIC LIGHT EXTENSIONS. U MEETING OF RATEPAYERS* _ * At a meeting of ratepayers kit night' to discuss the New Plymouth Borough Council's proposal to raise a further lout of £BO,OOO for hydro-electric extensions, there was a very small attendance. The Deputy-Mayor (Cr. F; J. Bill)* who pre» sided, expressed disappointment that more persons had not seen fit to attend. Possibly, he said, it could be taken ai an indication that the ratepayers apt proved of the loan. REVIEW OF' PROPOSALS. '• Reviewing the proposals, Mr. Hill said that possibly ratepayers would want to know why the Council was coming forward so often with loans for such large amounts and for the same work, or Whafc appeared to be the same proposals. He stated that in 1918 the first fioHema, which was for the development of 809 h.p., was brought lowa and was s«tk mated to cost £40,000, la Januaiy of this year, certain suggestions were maid by the electrical engineer for tno altera* tion of one of the races, whereby an additional 1000 h.p. would ba developed. Revised estimates were then mado.np, the civil engineering portion of the scheme being set down at £63,723, the electrical part at £23,500, and land, building and other items broufht the total to £112,000. For this authority was given by the ratepayers to raise a loan. In October, 1020, however, the. estimated cost of the work had advanced to £IBO,OOO. The civil engineering work in this latest estimate was set down a.t £95,330 and the electrical at '£29,700. ' ." On top of other expenditure the Council had thought it advisable to provide a margin for extra contingencies of £12,000, making the total £172,000, , This left a balance unauthorised of £60,000. The estimate included an item of £14.000 for land, and it wa» hoped to get £IO,OOO of this back, bo that really the advance in tho cost from the original figure was from £40,000 to £159,000. ; , EXTRA 2000 H.P.

Mr. Hill pointed out that the original estimate was. for the development of 800 h.p., while the latest was for the provision of 2000 h,p. in addition to the present power. It was hoped to receive an extra revenue of £14,400 from the output on the original estimate, but in spite of the high costs as indicated by latest ■ estimates it was hoped to make a proht of £6OOO from the sales, (Those who had followed the engineer's estimates {would know that he was always on the careful side and in all probability they would get more than £6OOO. The speaker moved the following resolution: — "That this meeting of ratepayers, being o| opinion that it i 3 in the interest of the town that the £60,000 loan for electric light extensions should be carried, urges all ratepayers to vote for it on Wednesday." Mr. Hill jointed out that it would be a great setback to the town if the poll was not favored. It would also mean that the Council would have to stop supplying power and light to new customers, in addition to risking a breakdown of the present plant. The resolution was seconded by Cr. Hayden. THE ADVANCING PRICES. In reply to a question at to why the estimates of the cost had advanced so much, an explanation was given by the consulting engineer (Mr. v He said that when the question \»* gone into in 1918, they anticipate* *jgturn to more normal times after sja Sotelusion of the war, though not a return to pre-war status. \ were taken out adding 25 P*jew*t on 1014 prices. Instead of an iinJW<Jjwnent in the market respecting'material and labor, however, there was a big Mvance. so that estimates taken out o%e, mwfth were found to be all Wrong tJfe n«t. As regards the future the indications he believed were that pfices would drop, If they did not the work of the GoY|j;nmeiit and local bodies would have to be held in ftbeyftn/*. This did not Kpm to hydro-electric undertajjings, Because the lack of coal iu«jU»bant that they »h%W be gomjun wl^h. The estimates before the meeting were for the supply of".3000 horse power, being the minimum the praent scheme would supply. In reference to advanced prices, some figures were quoted hy Mr. Mason. As an. illustration, he Informed the meeting that pipes cost £24 ner*ttfn in 1914 while the Council's latest tender was in the vicinfty of £IOO. If the works were to go on, however, tly9.costs would have to'be met. The resolution was then put and carried, the Deputy-Mayor, in conclusion, urging all present to induce as many, ratepayers as possible to vote.