GAS SUBSIDY

Press, Volume LXXXIX, Issue 26967, 17 February 1953, Page 8

GAS SUBSIDY

REMOVAL PROPOSED BY GOVERNMENT

COMMITTEE TO MAKE RECOMMENDATIONS (New Zealand Press Association) AUCKLAND, February 16. The Government has set up a committee which is required to recommend methods by which the Government may be relieved of the need to subsidise the operations of gas supply authorities. The setting-up of the committee was announced by the Minister in charge of the State Hydro-electric Department (Mr W. S. Goosman) in a letter received by the Waitemata Electric Power Board today. The committee’s order of reference is:— (1) To consider the financial aspects of competition between the gas and electric supply authorities as it relates to the accounts of gas supply authorities, and to submit recommendations to the Government whereby from the earliest practicable date, but not later than September 30, 1953, it can be relieved of the necessity to subsidise the operations of gas supply authorities. (2) To inquire into, and report also if it deems fit, on any general economic or practical considerations relating to the production and distribution of gas where that industry comes into competition with electricity. ’ The members of the committee are: Mr J. Nissen (chairman), secretary to the State Hydro-electric Department; Dr. R. G. Hampton, investigating officer of the Department of Industries and Commerce; Mr I. R. Robinson, engineer and general manager of the Hutt Valley Electric Power Board; Mr G. A. Ammundsen, secretary of the Wanganui-Rangitikei Electric Power Board, representing the Electic Supply Authorities’ Association; Mr M. J. Kennedy, jun., secretary to the Wellington Gas Company, Ltd.; Mr R. Worley, general manager and secretary to the Auckland Gas Company, Ltd. “The apparent delay in formally appointing this committee has been intentional,” said Mr Goosman, “as it was not considered it should commence its inquiries until it could be acquainted with the likely increases in electrical supply authority tariffs resulting from the State Hydro-electric Department’s estimated requirements for the contractual period between April 1. 1953, and March 31, 1958. “It will be noted that no date by which the committee is to make its report is laid down,” added Mr Goosman. “Nevertheless, the earliest report consistent with the circumstances would be appreciated.”