More compensation sought

Press, 5 August 1980, Page 6

More compensation sought

Christchurch local bodies and industries will ask the Government for almost $1.7 million, as' additional assistance for domestic gas consumers who have to convert to electricity. Each householder will, on average, receive $609, plus trade-in allowances to compensate for the average cost of $928 spent on installing new electric appliances. Tax' write-offs, cash grants, and interest-free loans will also be sought for companies which 'will have to change to /alternative fuels. The Government will also be. asked to give financial assistance to non-profit organisations. . At present,', domestic con-

sinners with a gas cooker stand to get an average of $3OO from the Government in compensation, plus a maximum trade-in allowance of $350 from the Christchurch Gas Company. The cost of rewiring a house to take electric appliances is not covered in either - offer, and could amount to $l2O, plus $348 for new mains, meter, panel, and new 'main earth.-

The Gas Company’s tradein offer would remain until December 31,- when it was due for review, even 'if extra assistance was provided by tlie. Government, said the general manager of tlie company (Mr C. W. Kennedy), at a meeting of local bodies

and industry representatives yesterday. ..,';.'. . The meeting was called -to prepare submissions to the Minister, of Energy (Air Birch) or, the Under-Secret-ary of Energy'(Mr Brill). Mr Brill is also chairman of the Gas Council. The submissions, which will probably be presented next week .in Wellington, have been- prepared- by a working A group,- formed recently; by the Christchurch City .Council, the Heathcote County Council, the Riccarton Borough Council,' the Christchurch Gas Company, the Canterbury Manufacturers’ Association,., and the Electrical Supply Authorities’ Association. . '

The meeting was told that industries changing from gas to electricity would -not: qualify for the 100 per cent tax write-off offered ■to industries. converting to elec* triefty. However, gas had a much /higher imported oil content than. South Island electricity, and there was . a strong case for extending the tax' write-off :to affected industries. In .cases-where industries coverfe'd. to; L.P.G., • a- : 25 per centicash; grant was’ recommended ;by the working group. Mr-Brill will-also be asked .to -approve : interestfree loans; repayable over five years,- to cover the cost of conversion by industries.