HYDRO-ELECTRIC WORKS.

Taranaki Daily News, 16 July 1921, Page 5

HYDRO-ELECTRIC WORKS.

FINANCIAL POSITION REVIEWED.

THE VALUE GF GOOD CREDIT.

Various phases in connection with the financial position as affecting the hydroelectric extensions are reviewed by the New' Plymouth borough general manager (Mr. F. T. Bellringer) in his monthly report, which will be presented to Monday night’s meeting of the council He states: The grcai difficulty with which the council was faced in connection with the financing of the above works and the sucessful efforts in overcoming such difficulties overshadowed every other work of the council during the past month. After recounting the steps taken in connection with the £60,000,000 loan the report states: Although the council has now overcome a grave difficulty in connection with the extensions it was not due to any want of foresight or errors of judgment on the part of the present or the preceding council that the difficulties arose.

Actually in its financial operations in regard to extensions the council has exercised foresight and sound judgment. This will be realised when we consider that although the arrangement for advances on the £72,000 loan debentures was made in July, 1920, it was not until the end of June, 1921, that it was necessary to obtain the first advance from the bank twelve months after the arrangement was made and nearly nine months after the banks had declined to make commitments of this nature to local bodies. A policy was laid down in 1920 that no commitments would be made unless the money to meet such commitment was available or arranged for. This was rigidly adhered to. and the effect has been to establish the council’s credit not only in New Zealand but In Great Britain with the various firms with whom the council does business.

The value of good credit may be seen from the following extract of a letter received by. the Department to-day from a firm with whom the council does a largo business: “This morning ihe cheque has duly reached ns, and we want to take this opportunity to thank you for your attention, in this matter. Just at the present time we are having considerable trouble owing to various public bodies finding themselves unable to make prompt payments, and you will therefore* easily understand our pleasure nt finding that one of our customers has taken care to have funds available to cover commitments. However, this is only what we might have expected from vou because in the whole of our dealings with your council, we hav 4 e always found that payments have been most promptly made. This is the first occasion we have made any reference to the subject, but yet we have not been unmindful of your past actions, and can assure you that your habit of making prompt payments has been taken into consideration when putting propositions before you.”

THE ENGINEERING WORK

PROSPECTS BRIGHTER.

The following is the report of the resident engineer (Mr. Fearless) on the progress of the work: — The tramline has been extended to 1 mile 5 chains, also siding of about 7 chains put in to “A” heading of tunnel. Since receipt of instructions re closing down, work here has been stopepd, and men for whom work could not be found, put off. The work is proceeding satisfactorily with a minimum roll of employees. The haulage Of supplies, etc., will be much improved when the full plant is available. During the month No. 1 tunnel has been extended a further 105 feet, making a total distance driven of 160 l feet. A length of 378 feet still remains unlined. Referring to the actual working, the general manager states: It will be nwessary to immediately settle the question of whether the enlargement of the tunnel throughout its length is to be undertaken. I have already dealt with this matter in a previous report, but I would remind the council that unless the enlargement be made it will be altogether wrong to enter into any negotiations with Mr. Leggatt in connection with the supply of power for ironsand smelting, inasmuch as the council would not be able to supply the power even if the negotiations were successful. The question is one which requires the most careful consideration, and I am convinced that a deision not to proceed further with the enlargement will prove a great and costly detriment to the development of further power at a later date.