Opposition Predicts Gas Charges Will Be Increased

Press, Volume XCVII, Issue 28700, 25 September 1958, Page 14

Opposition Predicts Gas Charges Will Be Increased

(New Zealand Press Association)

WELLINGTON, Sept 24. Doubts that the gas industry would be much helped by the provisions of the new Gas Industry Bill were expressed by Mr J. T. Watts (Opposition, Fendalton) during discussion on the bill, in committee in the House of Representatives this evening. Mr Watts said he wished the measure well; but, in effect, it was carrying on a policy of aid by subsidies that had been in force for seven years. The new policy was to reduce the subsidies and use the money more and more for rehabilitation of the industry. “I am sure the Government will find there will be considerable resistance from the companies and the consumers when they see prices go up when, the subsidies are reduced.” said Mr Watts. “The only result will be that over the years the Government will have to keep up the subsidies and provide more money for the purposes of the present bit!.'' Mr Watts said that the passive resistance of the power boards had prevented co-ordination of gas and electricity being successful:' However, the time was close when a fuel and power commission would have to be set up in New Zealand The country could not' afford to have the coal industry fading away while great quantities of fuel oil were used. A Minister of Fuel and Power was required. Executives Needed There were some efficient men in the gas industry, but there was a great need for young engineers and. people qualified for management. A big proportion of the works were inefficient and the average loss in transmission of gas produced was 18 per cent. . Mr S. A. Whitehead (Government, Nelson) said the failure of attempts at co-ordination was not necessarily to be regretted. The

gas industry was both a manufacturing and distributing industry while power boards were concerned only with distribution The gas industry had been taken into the Government’s confidence and the provisions of the bill, including the establishment of the Gas Council, were very acceptable to the industry.

Mr A. E. Allen (Opposition, Franklin) said many small gas works were uneconomic. When the Gas Council investigated the state of these works, it would almost certainly conclude that it would be advisable to close down some of them.

The Minister of Labour (Mr Hackett) said the bill’s purpose was to make the gas industry more efficient. It certainly was not the Government’s desire to close down works and he hoped it would be possible for all to continue as the mining industry was particularly interested in an expanding gas industry. There was also considerable scope within the gas industry for the greater use of by-products. Workers’ Representative

Mr D C. Sea th (Opposition. Waitomo). discussing worker representation on the Gas Council, asked if the Federation of Labour appointee would be Mr N. S. Francis, who was a member and an employee of the Hutt Valley Electric Power Board, was also on the Hutt and Petone Gas Board until that undertaking was taken over by the power board, and was also president of the Electrical Workers’ Union Periodically he sat on the Conciliation Council and helped fix awards under which he operated himself. If Mr Francis were to be the appointee then the cycle would be completed, said Mr Seath.

Mr Hackett said the appointee of the Federation of Labour would represent about one million people.