Gas industry’s plan rejected

Press, Volume CXII, Issue 32879, 30 March 1972, Page 3

Gas industry’s plan rejected

(New Zealand Press Association) WELLINGTON, March 29. Proposals for the Government to reorganise and expand the gas manufacturing industry at a cost of more than s3om in the next five years are not acceptable, the Minister of Fuel and Power (Mr Gandar) has told a meeting of the Gas Council.

Recommendations were put forward by a consultancy group, W. S. Atkins and Partners, which was commissioned by the Gas Council to study the future of gas undertakings not included in the natural gas network. “Although the Government cannot accept the recommendations themselves, the detailed report contains a good deal of useful information,” Mr Gandar said. The Atkins report concludes that there is a case for expanding the manufactured gas industry in New Zealand. But because each undertaking would have to sell gas below production cost to compete with other fuels, it would be necessary for the Government to provide substantial financial support. “The consultants proposals provide for a Governmentbacked central organisation which would plan and finance the development of these undertakings,” Mr I Gandar said.

“They would rely on petroleum feedstock bought and distributed by this [organisation. I “In the consultants’ view [this arrangement, including la permanent Government (subsidy, would enable the exlisting gas undertakings to

sell gas at competitive prices and, on average, treble their share of the domestic market within five years,” said Mr Gandar. In some instances the national benefit from supplying manufactured gas instead of other fuels was not large enough to warrant the subsidy the consultants considered would be necessary. “Also there are cases where there might be no benefit in a continued gas supply; in this case it may be appropriate to permit an individual undertaking to withdraw from the energy market,” said Mr Gandar. “In view of the pressing need for the industry to decide its future, I have arranged for each undertaking to be examined separately to see what other alternatives could be considered, and I have invited the Gas Asosciation to participate.”

Candidates.—The Labour Party candidate for Hobson in the General Election this year is Mr R. Hendry, aged 32, a Methodist minister, of Rawene. The candidate for Rodney is Mr P. W. Trim, aged 35, head teacher at Tapora. Wellsford.—<P A.) I