May, 25: Government approval in principal for one of the largest development proposals undertaken in New Zealand - a $340 million scheme to install six hydro-electricity dams on the Clutha and Kawarau Rivers - was announced by the Minister of Works and Development, the Hon H. Watt in Cromwell yesterday.
The Cromwell War Memorial Hall was packed to overflowing with more than 500 local people, who listened quietly while Mr Watt sanctioned the flooding of the commercial area of their town, as well as nearly 2,000 acres of land in the Clutha Valley.
An outline of the interim report of the Clutha Valley Development Commission was given to the meeting by the chairman, Mr R. J. Calvert, of Dunedin, who said the integrated power scheme would have a generation capacity of 1,490MW - more than double the capacity of Manapouri.
He told Cromwell residents of plans to rebuild the commercial area of their town on a new site, establish a new southern accessway to Cromwell, and to build a construction town, about the same size as Turangi with 5,000 to 6,000 people, adjacent to the west and south-west boundaries of the town.
There could be some variations to the initial proposals put forward by the commission, Mr Watt said, but the general outline of the report would be followed.
He promised full cooperation between the Government and local authorities in planning and construction matters.
"It will be our responsibility as Government to replace what will be lost with something better," he said.
"We will not do anything that the people of the area do not want us to do. Nobody in this area is going to have to pay anything for the cost of this development. This is a scheme for the nation as a whole."
FURTHER STUDY
The Minister authorised the Clutha Valley Development Commission to undertake further investigation into the hydro proposals and compile a final report.
The commission would also make detailed studies of other aspects of Clutha Valley development, including irrigation, land use and the tourism, he said.
The hydro schemes recommended by the commission involve less flooding of land than earlier proposals put forward for development of the Clutha and Kawarau Rivers.
There will, however, be more than 40 businesses and 39 houses in Cromwell affected by the eight square mile lake formed by a dam to be built in the Cromwell Gorge, two miles from the town.