Lower Gas Subsidy But No Price Rise

Press, Volume XCVII, Issue 28754, 27 November 1958, Page 16

Lower Gas Subsidy But No Price Rise

(hew Zealand Press Association)

WELLINGTON. Nov. 26. | Coal prices and the effect of! reducing subsidies were discussed by the newly-appointed Gas Council, which held its first mcct- : ing yesterday. The Minister of' State Electricity’ (.Mr Watt) was; chairman.

i It was pointed out that in con- , formity with Government policy , the present fixed subsidy is to bo reduced on April 1 next from 2s to Is 4d for each 1000 cubic feet lof gas sold. That had to be considered in relation to coal prices. After discussing present coal prices, the council decided to obtain more information on the effect of establishing poo] prices, and asked that a report be presented at its next meeting early in February. In the meantime, the council will inform the gas industry that if the effect of any change in prices, including coal contracts, cannot be ascertained by the time the legislation becomes operative, the council will, if necessary, authorise payment of up to an additional 8d for each 1000 cubic feet until June 30. 1959. This means that gas undertakings do not have to consider making price changes at this stage The operation of the gas industry account, to be opened on April 1, 1959, was also discussed This account is to be part of the Public Accounts, and will be funded by transfers from the Consolidated Fund. Each year there will be provided an amount estimated to cover expenditure, and from time to time the Treasury, with the approval of the Minister of Finance, will transfer to the credit of the gas industry account sums up to the amount provided ion the estimates.

| Grants, subsidies, and loans al- ■ ready approved will continue to be paid by the Treasury up to . March 31 next, but after April 1 all grants and payments from ; the gas industry account will be operated by the Now Zealand 1 Electricity Department on behalf of the New Zealand Gas Council. | All requests for assistance arc :to be addressed to the secretary ! of the Gas Council. Mr V. A. Lc j Pago, of the New Zealand ElecI tricity Department, who has been I appointed to this position. He will be responsible f »i\ obtaining ■ from other Government depart--1 merits the necessary financial and ; technical information about the requests. Government departments will co-operate with the Gas Council • iii investigating applications by i gas undertakings for financial assistance. and the Treasury will administer loans either directly or through the State Advances Corporation on terms and conditions laid down by the Gas Council.