The Daily News. THURSDAY, MARCH 24, 1921. ELECTRIC POWER FINANCE.

Taranaki Daily News, 24 March 1921, Page 4

The Daily News. THURSDAY, MARCH 24, 1921. ELECTRIC POWER FINANCE.

The general manager of the New Plymouth Borough has put the financial position in connection with the electric power extensions clearly and forcibly before the council and rate payers. Briefly it is that the money in sight is but sufircienit ttio imedt commitments, land that unless further funds can be arranged for operations must cease in the near future. The money is not required at once, f>otr payment of some of the commitments will pot b& due for six or seven months, and the money can be used meantime | for other purposes, a course that could safely be taken in normal times, but, as the manager says, present times are abnormal, and the same risks cannot be taken. So future finance lias to be arranged, or work must stop. The council decided to send a deputation to Wellington to ascertain if money could be secured from any of the Government lending departments. The present situation eomes about by reason of the increased cost of the works. Practically the whole of the money for the scheme was arranged for last year, but it was found in October that the works would cost an additional £60,000. This unpleasant fact upset al] calculations and arrangements. Again, had the Government agreed to the council offering a slightly higher rate of interest the money could have been obtained. The Government was not quite fair to New Plymouth over this matter. It withheld permission to an increased rate in New Plymouth’s case, but granted permission ’to the Wanganui Borough Council and the Auckland Harbor Board, whilst in respect of Wanganui the Government did not stipulate that the consent of the ratepayers to the increase should first be obtained; but they imposed this condition in New Plymouth’s case, when at last they granted permlisston to increase the rate of interest to 6 per cent. The delay has been prejudicial to New Plymouth’s Chance of raising the money, and it is questionable now if the higher rate of interest Will attract the necessary fufids. The work for which the money is required is really of national will smUw >oMible .the

supply of electric power to a good part of Taranaki, and, when the scheme is carried out an its entirety, it will be sufficient to meet the whole of the requirements of the province until the Government’s own power is available. For that reason one would have expected the Government to help New Plymouth in every possible way to liaise the money, instead of putting obstacles in the way. It would be nothing short of a calamity, not only to New Plymouth, but to 'Taranaki, were the work to stop, and it is. to be hoped the deputation will meet with success when they approach the lending institutions connected with the Government. The fact that the money is required seven or nine months hence should make their task easier than if they desired it in the immediate future. Failing success in these quarters, the council must do its best to place the debentures locally before taking the extreme step of closing down the work.