NOT ACCEPTED

Bay of Plenty Times, Volume LXX, Issue 13672, 20 June 1942, Page 2

NOT ACCEPTED

COUNCIL’S OFFER Gasworks Property Refusal To Increase Price A hitch has occurred in connection with the proposal of the Tauranga Borough Council to purchase the assets" of the Tauranga Gas Company Ltd. for the purpose of continuing to operate the works until such time as the consumers of gas are in a position to purchase the equipment necessary for them to change over to electricity. It will be remembered that the council made an offer of £IOOO for the assets of the company, which is in liquidation, but that offer has been turned down. The council held a special meeting yesterday afternoon for the purpose of discussing the position, and eventually decided that it could not increase its offer. There were present at the meeting the Mayor (Mr L. R. Wilkinson) and Crs C. T. McFarlane, A. A. Fleming, D. Math.eson, E. X S. Hylton. C. F. Washer. W. A. Carswell, and A. Brewer. Letter From Liquidator

In a letter to the council, the liquidator (Mr A. J. Gallagher) stated that he had discussed with the local District Public Trustee the council's offer of £IOOO for the assets of the Tauranga Gas Company, Ltd., and he found that it could not he accepted. The Public Trustee, as agent for the first mortgagee, had obtained from the Valuation Department an estimate of the value of the property apart from its use as a gasworks, and that valuation was in excess of £IOOO. As a trustee he could not, without good reason, accept a figure less than that fixed by a competent valuer, and as, in this instance, a higher offer had been received for the property, the Public Trustee would not permit him to accept the council’s offer. “In view of the fact that acceptance of the second offer would result in the works being closed,” added the letter, “I am writing to give your council an opportunity to reconsider the matter if it is desirous of ensuring a continued supply of gas .in the meantime. In order to purchase the undertaking "the sum of £I3OO is required. I have arranged to postpone acceptance for a few days to give your council an opportunity to decide before 5 p.m. on Friday, June 19, 1942, if it wishes to purchase at £l3O 0. I regret that a longer time cannot be allowed, but the person wishing' to purchase the property has naturally put a time limit on his offer.” When the letter had been read, Cr Hylton moved that the liquidator be informed that the council could not see i:s way to increase its offer of £IOOO for the gasworks property as it stands. This was seconded by Cr McFarlane and carried. Another Offer

The trend of the discussion disclosed that councillors were disappointed that the offer of the council had not been accepted, and they took exception to it. It was pointed out by the Mayor that the offer was made with the object of carrying on the works so that the consumers of gas would not be left in a difficult situation. Since the council had made its offer another price had been received by the liquidator, and he now asked the council to increase its offer. The council considered its offer to be a very reasonable one, and it was surprised to hear that another offer had been received after the price it was willing to pay had been made public. Reference was made during the discussion to the visit to Wellington by a deputation from the council for the purpose of discussing the future of the gasworks, and Cr Hylton moved that the. following telegram he sent to Mr McPherson, of the Price Tribunal: “Liquidator for gasworks received no tenders for the property. Council then offered £IOOO. Liquidator states that Tauranga representative of the Public Trust refused consent to acceptance.” This was seconded by the Mayor and carried. Opposition to the action of the council in making an offer was voiced by Cr Washer. Cr Brewer stated that everyone he had spoken to on the subject was quite in agreement with the council in its action,* and they thought the council should do its best to carry the works on. Cr Washer was the only one he had heard speak against it. Cr McFarlane intimated that he had heard opposition to the move. “A War Measure” The Mayor stated that it must be remembered that the council was' under an obligation to stand by its previous resolution to offer £IOOO. He realised that some were not over keen about the proposition, but the council did not wish to see the gas consumers left in a difficult situation. The council did not wish to carry on the gasworks with the object of making, a profit out of them. It was merely a war measure to help those citizens who could not see a way of getting over their problem. There were quite a number who were willing to change over to electricity if they could get the appliances. The council had faced up to the situation and he was quite sure the consumers would be more disappointed than anyone when it was learned that the council’s offer had not been accepted. “We can go away from this meeting with a clear conscience and the knowledge that we have done our best,” stated the Mayor, who added that if the council offered £I3OO to-day there was no guarantee that someone else would not go along and make an offer of £I4OO.

“If the Public Trustee is u cerned about another W , i 9 it not big enough to S or 300 consumers the t t he Cr Carswell, ******* ■» Public Trust could » • , woi'ks as well as tt» rU a « Cr McFarlane. res, brewery in Welling* o * jt s uoiitf The Mayor stated . h t t ]xe ca uEC ‘! be made Quite c,e « would not run a » offer were not e i At this stage Ci J a Brevre r tj to the remark of C k agiißhe had heard no “ s her> stat >U the proposal by Ci ba d that three business and spo ke on him only on Thujsa very strongly against^