GAS SUPPLY TO UNIVERSITY

Press, Volume XCIV, Issue 28150, 13 December 1956, Page 16

GAS SUPPLY TO UNIVERSITY

PROBLEM OF MAINS TO NEW SITE COMPANY’S ATTITUDE EXPLAINED The Christchurch Gas Company has declined to give service to the new university site at Riccarton because it believes the proposals are uneconomic, and not because of any shortage of gas, according to a statement issued by the company yesterday. This referred in particular to a letter to the Canterbury University College Council from the Commissioner of Works (Mr F. M. Hanson) which said: “It is now clear that insufficient gas will be available and the proposal to erect the first portion of the boiler house and install coal-fired equipment is therefore being proceeded with.”

The Gas Company’s chairman (Mr C. P. Agar) said the decision of the Gas Company to refuse to extend its reticulation to the university site in Ham road was based solely on the uneconomic nature of the business proposed.

“The proposals that were put before the Gas Company envisaged the use of gas-fired boilers during the developmental stages of the establishment and the swing over to the use of coal-fired boilers when the load developed to its full extent. The high '•ost of mains prevents the Gas Company from accepting short-term business of this nature,” said Mr Agar. “It is appreciated that coal provides a cheaper first-cost fuel than gas. if the amenity factors are ignored, particularly when high-cost reticulation charges are incurred. But if a clean labour-free fuel such as gas is used exclusively in a large establishment, the over-all cost picture is very frequently socially preferable. “Gas is not in short supply,” said Mr Agar, “and the future of the gas industry in Christchurch is in no way uncertain. The business is expanding and it is the duty of the Gas Company’s board to see that the expansion is economic.

“It is significant, surely, that gas has been selected as the optimum fuel for the Cashmere Hospital and that the Gas Company has installed a largediameter main from its works right out to Cashmere to fulfil this service. The university business is of equal interest to us. providing it can be established on terms advantageous to both parties.” Mr Agar said.