GAS.

Auckland Star, Volume XX, Issue 146, 21 June 1889, Page 2

GAS.

THE CHRISTCHURCH COMPANY AND THE CORPORATION.

PROPOSED MUNICIPAL GASWORKS,

It is a significant fact that just at the time when the Auckland Gas Company are bringing forward a Bill to extend the powers vested in that body, the City Council of Christchurch is moving in the opposite direction. In fact, a determination has beon arrived at to erect Corporation Gasworks. The Town Clerk of Christchurch, Mr T. S. Haskins, has forwarded the following letber to Mr P. A. Philips, Town Clerk, Auckland :—

"Sir, —I have tho houour, by direction of the Council, to inform you that it intends • during the ensuing session of Parliament to! introduce a local Bill to repeal that part of : section 369 of the Municipal Corporations! Act, 1036, which prevents municipalities' from erecting gas works where thoy already' exist. ;

" The monopoly in this city has proved so grievous that it has been determined by the ratepayers to erect Corporation Gasworks. "Every endeavour has been made to get the Gas Company to meet the just demands of the citizens before this course was decided upon.

" It was only after active steps had been j taken by the Council and citizens to initiate such works that the Company lowered the' price of gas from 10s per 1,000 feet to 7s 6d ; for cash. The Company still insists on I collecting meter rents, which the ratepayers j consider a very unjust charge. " The Council would rather that the para-. graph should be struck out, so thab every: municipality should have the right if it so ; desired to erect its own gas works, and: would cordially aid if the Government: could be induced to amend the M. C. Act, in that direction ; bub failing that, you are i very respectfully asked to give your support to our local Bill, and induce your! membersin the House to vote for it.

'' I send you a leaflet which was prepared for the public meeting here, which will give you a fair idea of the monopoly, and necessity to pub an end to it. " I also send you a copy of the Bill to be introduced."

The leaflet appended to the letter contains a copy of the report of the Special Lighting Committee. Ib state, that a gasworks equal to producing at leasb forby million cubic feeb of gas per annum could bo erected for £50,000, including tl. reticulation or the city. The report also states : "Whore the municipalities have the control and management of gas works it is found that the public is supplied wibh; gas and thab the public lamps are' lighted at a much cheaper rate than' where tho works are in the hands of private companies, besides which any profits made go to lessen the price of gas, or in the reduction of the rates.": Invercargill' is quoted as an insbance. There, gas is charged ab the rate of 7s 6d per thousand, and the cost of the works is only £45,000, on which both interest and sinking fund are paid. In Invercargill the' public lamps, including lighting and clean-, ing, cost £4 5s each, while in Christchurch £5 10s was paid for the same service. Invercargill supplied the public with coke at 16s per ton, in Christchurch 25s and 30s was the price wanted. Yet notwithstanding the low charges of the former they had been enabled to save £3,000 for further extension or in reduction of rabes. The reporb states : "If Invercargill can supply gas ab 7s 6d, populous cities like Christchurch could supply it at the rate of 5s or 5s 6d." It. was also mentioned that in Nelson tho Corporation holds the gas works, and the rates were lower than those charged in Christchurch, and still the returns showed a profit for the year of £850. In Dunedin the Corporation had purchased a most expensive plant from a private company. There tliey paid £5,343 per annum as interest and sinking fund on the cost of the works besides other heavy charges, such as rents, compensation, etc. ; still gas was supplied at 7s 6d per 1,000 cubic feet, and that, notwithstanding, lefc a profit for the ratepayers of £5,000 to £4,000 per annum. In Dunedin, the cost of manufacturing gas was shown to be os 8d por 1,000 cubic feet. The report of the Committee was discussed ab a meeting of the Christchurch Council, when it was mentioned that from 1865 to 1887 a total sum of £145,319 7s 8d had been paid by the Gas Company as dividends, in addition to paying for repairs, extensions, depreciation, and to the re-insurance fund. And all that was from a company with an original capital of £10,000, and the dividends were paid to about 180 shareholders. After thoroughly going into the matter, the Christchurch Council resolved to take the necessary steps in regard to raising a loan for gas works.