POWER SCHEME.

Taranaki Daily News, 22 November 1921, Page 5

POWER SCHEME.

'PLANS FOR THE SURVEY. ENGLISH FINANCE OFFER. ATTITUDE OF THE COUNCIL. The discussion concerning the offer made by Mr. Percy J. Leggatt (Sunimerson and Sons), England, to finance the New Plymouth Borough Council’s hydro-electric scheme was carried a further stage at the meeting of the council last night. After a general expression of opinion by members two resolutions were carried. The first authorised the taking of a survey in regard to the ascertainment of further sources of supply, and, following this, the council resolved to inform. Mr. Leggatt that if the survey disclosed that sufficient extra power was available they would be pleased to enter into negotiations with him. When the subject came up for discussion Cr. R. L. Parkin moved that Mr. Leggatt be informed that the council at present did not require any financial assistance, that the council could not supply his minimum requirements when the present scheme was completed; also advising that the council were to have a survey taken of the upper Waiwakaiho and surrounding districts, and that when this report was received would then be able to say what power, if any, was available for use. In moving the motion, Cr. Parkin said he considered that Mr. Leggatt would not have offered to finance the council if he had not expected to secure some *• electric power from them, and the council was not in a position to supply the current unless extra water was available.

Cr. W. Rumball seconded, and said there seemed to be another objection—namely, as to whether the council could supply the power at the price offered by Mr. Leggatt, who did not seem to be allowing the council anything for working costs, depreciation or profit. He understood the price which had been mentioned by Summerson and Sons worked out at about one-third of a penny per unit. Cr. J. Brown asked whether Mr. Leggatt had been supplied with all the information that was available, or that had been asked for. He remarked that there had been some talk outside of the council having kept back certain information, but from his experience on the council he did not think this was correct. MOTION OPPOSED. The general manager (Mr. F. T. Bellringer) said that Summerson and . Sons had been supplied with copies of reports; the council had made no proposals or suggestions to them. Cr. Brown: “I don’t see how we can; we have really nothing to offer. Cr. T. N. Blackball said he was not in favor of the motion, for the reason that the advances were from Leggatt and Co., and not from the council. While the firm had not made any definite proposal as to the interest they would require, there was a possibility that it would be to the advantage of the council and to the town to consolidate the hydro-electric loans. So far as he had Been able to gather, no reasons had been advanced why the council would not be able to sell power. There was a survey to be authorised, and the tunnel was being built on the larger size, and if by any means the council got an extra supply of water they might be able to offer power at their price. He felt that it was not too late to hold the matter in abeyance until the council knew definitely as to what power would be available. Cr. Parkin: “That is my resolution.”

Cr. Blackball urged that before turning down the company definitely the council should weigh the matter carefully. It was quite evident that the power was not available at present, but after the survey it was possible the basis would be different, and if the power could be offered at a price that would pay the council its working expenses it would result in a handsome profit to the borough. It was only right, therefore, that they should keep this in view; in fact, he would go further and ask the company what interest they are prepared to accept for this large loan. The Mayor: “Which loan?” Cr. Blackball said he understood the proposal was to consolidate the hydroelectric loans. The Mayor: “You know it can’t be done.” Cr. R. A. Large supported the views expressed by Crs. Parkin and Rumball.

ENCOURAGING OFFER. Cr. V. Griffiths said he could not support Cr. Parkin’s resolution in its existing form, and he objected to the first clause. He suggested that the best procedure would be for the council to instruct the surveyors to make a survey, and to inform Mr. Leggatt that if the survey disclosed extra power the council would be willing to enter into negotiations. By adopting this course they would be giving Mr. Leggatt every possible encouragement, though it could not be said the council were misleading him at present. Mr. Leggatt had taken an interest in the schemes round New Plymouth; no doubt he had taken it from his own motives; but, nevertheless, if he could be of any assistance to the council in supplying funds, which might become necessary in the future, then the council should give all the assistance they could by carrying . forward any schemes that seemed possible as the result of the'survey. Cr. Parkin agreed to withdraw his motion in order that the council might discuss the question of the survey. Mr. Griffiths then moved that a surveys be taken to ascertain what additional water power is available, the drafting of conditioiis regarding the survey to be left to the hydro-electric committee. Cr. Kibby opposed the motion, and considered the work shguld not be undertaken until the loan moneys were available. He moved an amendment to this effect.

The amendment was seconded by Cr. E. Dingle. In the course of discussion Cr. Kibby admitted that he had supported the authorisation of the two biggest items in the £9OOO loan schedule, but he did not think the survey was urgent, and he also thought that the council might need the money later. Cr. Parkin did not favor holding up the survey for the sake of £5OO. The amendment was and the motion in favor of the survey was then carried. The following resolution, moved by Cr. Griffiths, and seconded by Cr. Brown, was then carried without discussion: “That Mr. Leggatt be informed that the council is advised that even with the completion of the authorised schelne power would not be available to meet his requirements, but that a survey is being made, and if the survey shows that sufficient power can be supplied then the council would be pleased to enter into negotiations with him for the necessary finance to carry out the extended scheme, provided” he is prepared to pay for current at a rate that would pay interest and other on .extended scheme. , ' ‘ :