POWER SCHEME.

Taranaki Daily News, 22 January 1921, Page 5

POWER SCHEME.

LOAN MONEY INTEREST. HIGHER RATE WANTED. DEPUTATION TO PREMIER. (By Wire.—Own Correspondent.) Wellington, Last Night. A request for permission to pay 6 per cent, for loan money required for the development ,of hydro-electric power was placed before the Minister of Finance (Mr. Massey) this morning by the Deputy Mayor of New Plymouth (Mr. J. R. Hill) and the borough manager (Mr. F. T. Bellringer). The head of the Treasury (Colonel G. F. C. Campbell) was present. The members of the deputation explained that the New Plymouth Borough Council, with the permission of the ratepayers, had undertaken necessary extensions of the existing hydroelectric plant. The present plant was heavily overloaded, and was unable to supply all the power that was required. The Council had entered into an agreement to supply Inglewood with power, and it had received applications from other in Taranaki. A sum of about £60,000 had been spent on the extensions, but the council found itself unable now to raise the rest of the money at 52 ‘ per cent —the maximum rate of interest allowed by the Order-in-Council. It had done its best to attract investors.

Mr. Massey: “I admired your advertisements.” ESTIMATE EXCEEDED. The borough representatives added that the Auckland Harbor Board and some other bodies had been allowed to pay an increased rate of interest. The money could not be borrowed at per cent, in New Zealand, and they did not think that it could be raised abroad. They emphasised the importance of hydro-electric power, and referred to the utterances of Ministers on the subject, i Mr. Massey said there was no need to stress that point. They were all agreed that the power was important, but the question was one of ways and means. Colonel Campbell asked how the Borough Council had come to commit itself so heavily without the money in hand. Mr. Bellringer replied that the work had been proceeding for over a year. It was part of a very large scheme, and the council had to make its arrangements in advance. The original estimate had been £72,000, but it was seen now that the cost of the works would 'be nearly £160.000. The council was seeking the additional money to complete the works. Colonel Campbell stated that the Government had not allowed an increase in the of interest except in cases where maturing loans had to be met. Would it be fair to pay a higher rate of interest than the ratepayers had authorised. THREAT OF BREAKDOWN. Mr. Bellringer replied that the Government itself had recognised that money could not be raised by local bodies at 54 per cent., and it had taken power by legislation to authorise the increase of the rate. Mr. Massey: “It has only been done in cn??s where loans were maturing or where machinery and plant had been ordered, and had to be paid for.” Mr. Bellringer: “That is partly our position. We ordered machinery a considerable time ago, and it ought to be arriving within the next few months.” The borough, said the Deputy-Mayor, wa's threatened with a complete breakdown of the plant, owing to the heavy overloading, and it was unable to supply power that was urgently needed. Mr. Massey: “You are in the si me position as a dozen other places in New Zealand, and what we do for one we must do for the others. It is the duty of the Government to keep the rates of interest down.” Mr. Massey added that if the Government permitted it the rate of interest would go up to 8 or 9 per cent. Mr. Bellringer said that the New Plymouth scheme was really part of the big Government scheme. The Government had insisted upon the right to take half the power that was to be developed, and had inserted in the Order-in-Council a provision that the work must be completed within three years from July, 1920. CONTROL BY ENGLISHMAN. Colonel Campbell stated that while he was in England recently he had been approached by a prominent engineer, who was very anxious to take over the New Plymouth hydro-electric works and spend a lot of money in order to develop the ironsand deposits. Had the Borough Council been in communication with this engineer? Mr Bellringer: “He wanted 10,000 horse.power continuously. We are not developing that amount of power. Our scheme was too small for him. He wanted the power at a low rate fixed by himself.” ' Colonel Campbell: “He told me that he believed it would be many years before the big schemes in New Zealand were completed. He was prepared himself to find the money to provide all the pdwer that- New" P,lymou,tli Required, his special. object being the development of the ironsand.” Mr Massey remarked that the firm with which this engineer was connected was a very good firm. Colonel Campbell: “Thoroughly good. He would give you all the power you want for everything.” Mr. Bellringer: “Our scheme cannot provide him with the power that he wants.” . • Mr. Massey: “He put it to me the other way: That he would develop the power and supply you.” Mr. Bellringer: “We have partly completed our works already. We offered to give him 4000 horse-power on a certain restricted load.” Colonel Campbell: “He wants to do it the other way; to provide the power himself and let you have what you j want.” TIME NOT OPPORTUNE. Mr. Bellringer: “’That, would mean letting him take over our work< That might be a matter for future consideration, but we cannot go into a matter of that kind, at the present stage. We are extending our existing works to provide power that the district requires, and we have the operations partially completed. Mr. Massey, after some further discussion, said that he would talk over: proposal "With Colonel Campbell. |

The position really was quite simple There was merely a limited amount of money available for all the works in New Zealand, and there was not enough money, material and labor to go round. If one local body were allowed to rush in ahe°d of the others it would get more than- its share of the available money. Mr. Bellringer: “Our material is largely on order, and our labor is actually on the job. We have enough labor.” Colonel Campbell said that, as head of the Treasury, he had to tell the Prime Minister that it was necessary to go very slowly, in view of the requests for support that were being received from many quarters. He offered to show the Mayor some communications from Mr. Leggatt, the engineer who was willing to undertake the New Plymouth scheme. Mr. Massey remarked that Mr. Leggatt was a member of a family known in New Zealand, and his firm was a strong one. The members of the deputation mentioned also their borough’s need of money to pay for three hew tram cars now on order. The borough tramways were gravely handicapped at present by lack of rolling stock. Mr. Massey promised that all the points would be" taken into consideration.