FUTURE OF GAS INDUSTRY

Press, Volume XCII, Issue 27795, 21 October 1955, Page 12

FUTURE OF GAS INDUSTRY

Power Authorities’ Discussion

COMMITTEE SET UP TO REPORT

After hearing th Minister in charge of the State Hydro-electric Department (Mr W. S. Goosman) say that the Government must act, and was going to, to preserve the gas industry, which provided 13 per cent, of New Zealand’s heat and power, the annual conference of the New Zealand Electrical Supply Authorities’ Association yesterday agreed that in the national interests not only larger gas undertakings, but also other gas undertakings which were efficient or could be I made efficient at reasonable cost should remain in operation. The conference authorised the executive to set up a committee to consider proposals for the future of the gas industry, to discuss details with the Government and to report back to a further meeting of the association.

A suggestion by Mr G. Manning (Christchurch) that the committee should be asked to consider State ownership and control of the gas industry was not well received by the conference. Some delegates said that a pre-conference session had voted overwhelmingly against State control; but the president (Mr R. F. Ball) said it was open to the committee to consider that aspect. He gave an assurance that the committers report would be referred to a meeting “such as this.”

“The gas industry is an essential part of the heat and power resources of this country,” the Minister said. "That 13 per cent, of the heat and power which gas provides must be preserved.” Many industries used gas, as did hundreds of thousands of other consumers who had installed and paid for appliances, he said. “You can argue it both ways, but there is one argument no-cne can refute,” he continued, “and that is the necessity to do something. It is a job the Government has to do, and the Government is asking for the cooperation of the people we think are best able to deal with it—the electric power supply authorities. “It is a ridiculous situation that a commodity of which we are already short is pushing out a commodity that is the best possible alternative.”

Empowering Bill The Minister said ne had an empowering bill ready to be put through Parliament during the present session. It would not deal with specific points, xhey would be negotiated with the power supply authorities and then be brought down in regulations. “I am not prepared to leave this matter over for 12 months,” he said. “We have to preserve the gas industry and we are going ahead to do it.” Mr J. R. Keenaft (Auckland) suggested in a resolution, which was not out to the meeting, that power authorities were prepared to purchase and operate gasworks in conjunction with electrical supply organisations, provided the Minister was prepared to appoint a co-ordinating committee. He suggested that the Minister should be chairman, electric supply authorities should have three representatives and the gas industry one. In addition, there should be a technical committee. Mr Keenan also suggested that a legal adviser be appointed to act with the association’s gas committee in the preparation of submissions to the Minister.

There were several protests against any vote being taken, and several delegates urged that discussion be postponed. Mr J. E. Jones (Christchurch) was one of those who protested, and he contended that the Government should take over the gas industry. It had been supporting the industry by a subsidy. he said, and logically it should take it over, and then the money for the industry uould still come out of the Consolidated Fund.

Replying to a question about composition of the committee, Mr Goosman said: “It will be such that the whole undertaking will be the greatest success we can make of it.” To the suggestion of State control, the Minister said that if the Government took over gas supply it would be in competition with electric power supply authorities, and that would be undesirable. The Minister was asked by Mr J. J. Hickey (Opunake) if he considered anyone was more competent to run the gas industry than those running it at present. “There is no better way of running it than for one concern to co-ordinate the two services,” he replied. There had been a subsidy for some years to the gas industry, and everyone knew the result, he replied to another question whether by maintaining its subsidy the Government could ensure continuance of the industry.