Gas grant ‘paid to company’

Press, 12 July 1980, Page 6

Gas grant ‘paid to company’

Parliamentary reporter The Government grants for assistance to Christchurch gas consumers who must now buy new appliances will be paid to the Christchurch Gas Company and not directly to the consumers, the Under-Secretary for Energy (Mr Brill) repeated yesterday. Mr Brill said he felt there might be some confusion among gas consumers as a result of a statement by the Gas Company’s general manager (Mr C. W. S. Kennedy) in “The Presss” of July 9. Mr. Kennedy announced that the company was offer, ing discounts . and trade-in allowances to domestic consumers which would be in addition to the Government assistance already available.

Mr Brill said that it was t'he Government’s policy when a gas supplier closed, to make an ex-gratia payment to the supplier to help offset the total cost on compensating domestic consumers.

“The actual amount to be paid to each consumer is decided by the gas company, and will vary according to the age and quality of. equipfnent each uses. The only constraint on the gas company’s discretion is that certain minimum levels are laid down by the New Zealand Gas Council,” said Mr Brill. “The scale of compensation originally announced by the Christchurch Gas Company was at the minimum level. The news that the company has now decided to increase the amounts and offer improved terms is very welcome, and the company must be commended for its approach,” he said.