The Daily News. TUESDAY, JANUARY 25, 1921. THE HYDRO-ELECTRIC LOAN

Taranaki Daily News, 25 January 1921, Page 4

The Daily News. TUESDAY, JANUARY 25, 1921. THE HYDRO-ELECTRIC LOAN

The deputation from the New Plymouth Borough Council (the deputy Mayor and the General Manager), at their recent interview with the Minister of Finance (Mr. Massey), met with a reception very much akin to that of the man who asked for bread and was given a stone. The request for permission to increase the rate of interest on the loans authorise) for extending the hydro-electric plant and procuring additional tramways equipment, was based on grounds that should have particularly appealed to the Government, inasmuch as the bulk of the money’ was to be expended for urgent public requirements, not new works, but the completion of an undertaking which really forms part of the Government’s national scheme. Moreover, the Government had made a condition that it could claim half the power to be developed by the municipality, and that the work must be completed in three years. Apparently the interview was dominated by the head officer of the Treasury (Mr. G. F. C. Campbell), and some light was thrown on what may be termed departmental isolation by the question asked by' Mr. Campbell as to how the borough had come to commit itself so heavily without having t.he money in hand. This gave Mr, Bellringer the opportunity' of explaining that the work had been proceeding for over a year; that it was part of a very large scheme, and that the Council had to make its arrangements in advance—a business system that possibly even the Treasury has heard of. All that Mr. Massey’ could urge against granting the request was: 1. Rates of interest must be kept down, or they might rise to 8 or 9 per cent. 2. The authority to increase rates of interest on loans had only been exercised in cases where loans were maturing, or machinery and plant which had been ordered had to be paid for. 3. That New Plymouth was in the same position as a dozen other places, and all must be treated alike, for if one local body wgre allowed to rush in ahead of others it would get more than its share of the available money.

Obviously the Minister was merely playing to the gallery in setting up sueh poor excuses for delaying the extremely important work for which the money is required. He has given a construction of the power entrusted to his discretion that is manifestly, arbitrary and,

inconsonant with the intent for which that power was authorised, viz., that each case should be decided on its merits. The Government lias not to find the money, that being the task of the municipality, yet the Minister’s arguments would make that task impossible. On its merits, the case presented by the deputation was so convincing that no hesitation should have been made over compliance with the request, a course that would in no way have affected the local money market nor prejudiced other public bodies, even those in the large centres, like the Auckland Harbor Board. What of the stone offered as a substitute? This adroit move was

engineered by Mr. Campbell as a means of closing up all further avenues of argument, just as it would close up the main essential of democratic government. The Minister should surely recognise that the acceptance of Mr. Leggatt’s offer to take over the New Plymouth hydro-electric works and run them as a private concern would create a precedent for the re-introduction of a system that has been condemned. Would the Government entertain for an in- ■ stant any proposal by a business! firm or syndicate to take over and run the railways of the Dominion: in order that the existing lines •night be extended and feeders constructed? Has the time arrived for scrapping the State and municipal services? If so, there is nothing more to say relative to Mr. Campbell’s contention, otherwise it goes by default. The Minister has promised to consider 11 all the points”; if he does, so it is inevitable that his reply must be favorable. The danger is that only some of the points may be considered, and from one aspect only, but it is to be hoped Mr. Massey will take a broad, statesmanlike, and democratic view of the matter. There is no doubt the borough is in a tight corner, and that emergence can only be secured by the Minister’s co-operation.