HYDRO-ELECTRIC WORKS.

Taranaki Daily News, 20 June 1921, Page 4

HYDRO-ELECTRIC WORKS.

QUESTION OF CLOSING DOWN. OPINIONS OF GENERAL MANAGER. In the course of his monthly report to the New Plymouth Borough Council the general manager (Mr. F. T. Bellringer) refers to the present position in connection with the hydro-electric extensions, and reviews the stages of the finances up till now, when the council is faced with the almost certain' possibility of having to close down. He says:— On March 17 last I submitted a report? showing the financial position of these extensions, pointing out that at that time there was just sufficient money available, or arranged for, to enable thet council to meet the whole of its commitments at due date, and recommending that until further debentures sold the works should be shut down. The council, however, feeling that .it would be a disaster to shut down*and relying upon the promise of the Government to give a State guarantee of the £60,000 loan, thus facilitating its flotation abroad, decided to take a certain amount of risk and keep the works go-, ing. Various difficulties have, however, since been raised by the Government in regard to the State guarantee, and it i> by no means certain that the guarantee will ever be given. In the meantime moneys which were being held to meet commitments in the nature of machinery ordered and contracts let are being utilised for the carrying out of the day labor portion of the works. The council realise of course that* this cannot go on indefinitely, and there appears to be every probability that in the very near future steps will have to be taken to secure the woik already constructed with a view to closing down completely until the money market eases and the £60,000 loan can be floated.

This, as pointed out in a previous re- ( port, will be nothing short of a disaster, as the works the cost of which when all liabilities have been met will amount to over £lOO,OOO will be in an uncompleted state, without earning one penny to meet the interest charges upon their cost, the supply of electricity to the whole of the district will be indefinitely postponed, and in addition a large number of men will be put off at a time when unemployment is very general.