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load centres as a replacement for existing plant which is reaching the stage of obsolescence or in case it is not possible to meet reasonable power demands by the early construction of hydro-electric stations. Our present power needs are so great that there can be no doubt that any generatingplant added to the system must be capable of continuous operation over long periods. The size of the plant needed, combined with the necessity for long periods of running, precludes the consideration of Diesel-electric plant except for installation in connection with some particular factory. The present high cost of fuel-driven plant, which is greater than the cost of hydroelectric plant, and the long delay in securing delivery make the present time most inopportune for purchasing this type of plant. Coal is already in short supply, so that it is not possible to obtain further large quantities of coal for the generation of electric power. The available coal could be much more effectively used than by converting the energy in the coal to electric power. Oil fuel has to be imported and is very high in price, and the use of oil fuel to the extent required would be a very expensive procedure indeed. Only by the continuance of the present hydro-electric policy can the necessity for increasing the charges for bulk supply be avoided, but this would involve some control over the rate of growth of load, combined with the speeding-up of work on hydro-electric schemes to the utmost possible extent. By these means the power position can be stabilized and eventually overcome without loading the country with excessive capital expenditure which must be carried on thereafter. The price of power from a hydro-electric station is fixed by the capital cost, but a fuel station involves about the same capital cost plus an excessive cost for fuel, be it oil or coal. There is one possibility which must not be overlooked, and that is the use of natural steam for power-generation. It is proposed to investigate this matter without delay and to put down trial bores in suitable locations. Natural steam would provide power comparable to water-power, in that it would be supplied by Nature. Under present world conditions it is very desirable that the electric supply of this country should be independent of imported fuel, and to this end we should develop the natural resources with which the country has been generously endowed. FINANCIAL RESULTS In my 1946 statement a brief summary was given of the financial results for the year ended 31st March, 1946. The audited accounts and balance-sheet for that year will be published in this year's parliamentary paper B-l [Pt. IV]. The following is a summary of the results (unaudited) for the year ended 31st March, 1947 : Nokth Island Scheme Capital outlay at end of year, £23,487,394 £ £ Revenue .. .. .. .. 2,023,237 Operating-costs .. .. .. .. 1,150,144 Gross profit .. .. .. .. .. 873,093 The capital charges are — Interest .. .. ..... .. 541,047 Depreciation .. .. .. .. 275,376 Total .. .. .. .. .. 816,423 Leaving a balance of .. .. .. £56,670

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