HUTT GAS SUPPLY.

Dominion, Volume 1, Issue 273, 11 August 1908, Page 8

HUTT GAS SUPPLY.

THE PETONE CAS WORKS. LARGE DEPUTATION. A large deputation, headed by Mr. E. P. Bunny and Mr. G. London, waited on tho Hutt Borough Council last night in referonco to the proposal to erect a gas works at Lower Hutt. 11l reply to tho Chairman (Councillor Baldwin), Mr. Bunny said that those present represented about 140 residents. Mr. Bunny said that tho deputation asked tho Council to reconsider its decision to erect gas works at tho Hutt. There was an express stipulation that this should only bo done in the event of the Council not being able to arrange with the Petone Council. Petone offered to supply the Hutt at 4s. 9d. per 1000 ft., and without negotiating, tho latter Council decided to erect its own gas works. It seemed to him a distinct breach with tho ratepayers. Tho Petone Borough had its works for nine years, and last year was the first year any profit was made. Tho speaker had got an estimate from Mr. Cook, uf Petone, and his items were moderate. In his estimate, the minimum cost would be 4s. "id. per 1000 ft. Even if theso figures were not correct, they 'wero worthy of consideration, and it had to be asked if 4s. 9d. was Pctone's minimum. They had never been asked—

\oice: Question! ~ Bunny said that he understood that the 1 etono Council would give the gas for 40. 6d. per 1000 ft. Moreover, bo hoped tho two boroughs would lie amalgamated, and two works would bo absurd. A reasonable airangement should be made with Petone to get fair terms.

A voice: Hear, hear. Mr. Bunny said that naturally enough people objected to a gas works at the Hutt as being a nuisance in tho residential quarters and it was possible that a claim for compensation would bo made if tho works were erected. Ho understood that tho Council nad purchased a property for £600 for tho purpose. The Chairman: You are right, Mr. Bunny Mr. Bunny said that the Hutt owed someand™r«ly was a tZe to cry halt. (Hear, hear.) He was told that the expenses of managing the Borough of Petone wero £631, while tne expenses of borough management at tho Hutt were £500 for an engineer, '£150 for an assistant engineer, £100 for a ,clerk, and £200 for consulting engineers, a total of £956. Then thero wero nine foremen, each at £3 10s a • week.

This was given a flat denal Tho Chairman: I cannot allow such state"l M-n I made. There i 3 an engineer at xooO: lie gets paid out of the waterworks loan. ihere is no assistant engineer and there is only one foreman. Mr. Bunny: I am glad I am mistaken. Ihe Chairman: I will have to stop vou. The working expenses of the borough have nothing to do with the construction of the gas works. -

Mr. Bunny: The working expenses of this borough have a great deal to do with it (Hear, hear.) The Chairman: I won't allow it. Mr. Bunny: You are very unreasonable. 1 have had the figures supplied to ino and if they aro incorrect, I am glad to. hear it. Tlio money' market is depressed and we have to be careful how we are going; we cannot <*o into experiments. ° ■ Councillor Ward' understood that 4s. 9d. was Petone's bedrock price. ' Mr. Bunny said that the Petone Borough Council was open, to a discussion of tno matter.

Mr. J. London supported Mr. Bunny. He asked the Mayor of-Petone if tho 4s. 9d. was the bedrock price, and he was told that .it was merely a basis for negotiations. As to the coke and tar produced, tho Petone peorni?* , .S^ vc Hutta due proportion, ihis should remove an outstanding grievance. Mr. W. G. Foster also supported''the previous speakers.

The Chairman said ho was pleased to see the deputation. The gas question'had caused a lot of. worry and bother, and it had boon decided, after considering reports, to ercct the gas works. The whole of the councillors present at,tho special meeting:on tho subject were Councillors Ward and Russell, and the Mayor and those present were unanimous on tho subject. At the next meeting the others spoke m favour of the proposal and one of the three was a member of tho committee which had. chosen tho site decided upon, ilio going to issuo reports on the matter, and after thev were read, it would bo agreed that the bouncil had done the right thing. Tho Petone gas works balance-sheet-for. 1906-7' showed that « C le p<oo m o° *0/1497, and there was a profit of £498 Bs. Id. ■ We get tho sldm milk:' they got the cream," ho added.

GAS COMMITTEE'S REPORTS. The Chairman then read the following reports:— ° The first report stated that at tho conference with the Petono Council tho committee were informed by the Mayor of Petono and his committee that it would be necessary for the Petone borough to spend tho sum of' £10,000 on additions to the gas works, if the Hutt borough wished to contmuo obtaining their supplies from letone. That Council outlined tho following offer: "That the proposed agreement bo tor a period of seven years, the price to be charged for gas for the first three years of the period'to be four shillings and ninepence per thousand cubic feet, and for tho last four years four shillings and sixpence per thousand cubic feet." On receiving tho offer, the Gas Committee of the Lower Hutt Council gave the matter full consideration obtaining reports from the Borough Engineer and Mr. Birch, of the Wellington Gas Company, and as a result recommended tho Council to erect a gas works of their own. Under the present arrangement of obtaining gas from the Petone ' borough there was very little chance of the Council being able to reduce the price of gas to the consumers in the borough below the averago of 7s. 9d per 1000 cubic feet.

Now turning to the question of the manufacture of gas on our own account," continues tho report, "and taking 8,000,000 cubic feet as a basis, we find by referring to tho Engineers reports that wo can manufacture gas and sell it to consumers at 6s. 9d. per thousand_ cubic_ feet, which price will allow of provision being made for the payment of tho interest on the sum of £16,500, and for £300 being set aside annually for depreciation and contingencies, and cover all other expenses in connectiAn with the works: "The Engineer's figures are as follow:— 8,000,000 feet'at 4s. 9d., £1900; 250 tons of coke at 205., £250; 9600 gallons of tar at 4d., £160. Total, £2310. 800 tons of coal at jls., £840; two men twelve months at £3 per week each, £312; one man twelve months at Bs. per day, £124 ■ 165.; 5 per cent, interest on £5000 plant, £250; £10 per month contingencies, £120. Total, £1646 16s. Receipts, £2310; expenditure, £1646: profit, £664. .

"It must be clearly understood that the foregoing figures apply only to a plant intended for the manufacture of eight millions cubic feet of gas per annum, but wo intend providing a plant capable of producing 15,000,000 cubic feet, and therefore there will bo an additional Initial cost, of £2000 for plant, and after paying the interest on the increased capital cost and allowing £50 for, supervision, tho net profit for the first year will therefore be reduced to £334. "Before coming to tho decision to commence the manufacture of gas, the Gas Committee and tho Council wont very fully into the whole question, and satisfied themselves that in tile best interests of ■ tho borough the time was ripe and opportune for the undertaking to be established. * 'Tho Council havo purchased a site, and the Engineer now has the plans and specifications in course of preparation, and tho works will be commenced as soon as possible, and, it is hoped, completed within twelve months in order 'that tho manufacture may bo commenced in time to continue tho supply at tho expiration of the present agreement with Petone." ESTIMATES -OF COST. Mr. H. Birch and Mr. H. Rix-Trott, Borough Enweerj reported' that .complete^

works for nininifnctiiring' 15,000,000 cubic foot per annum would cost £6000, exclusive of tho cost of tho site. The present consumption, nearly 8,000,000 feet, would already justify the erection of the works, and also as the public services of the two boroughs were entirely separate. 'I'hey would hesitate; to make tho recommendation if there was any certainty of amalgamation lyithiii the next seven years. In their opinion, the settlement and the districts to the north would bo likely to r,(rcr a field for tho extension in tile future, and there would be no difficulty si'pplying tho Upper Ilutt by moans of the high pressure system of gas supply. Messrs. Birch and liix-Trott submitted in hUn nnn . ■ k' lo manufacturing 10,000,000 cubic feet after allowing 10 per cent, of gas unaccounted for. Tho following is a summary:—Material, 1000 tons coal at 215., and purifying, £1090; labour, £-170 IGs. 8d .; interest,__s per cent, on £16,000, £800; salaries, £165; depreciation and contingencies, £250; total, £2781 10s. Bd.; less value of products, 312 tons coke for sale at 205., and 12,000 gallons tar at 'Id., £512. This works out at 4s. 6d. per 1000 cubic feet, i Voooo" 6s. Bd._por 1000 feet would liinM in Gs -' ,eavln 6 a gross profit of £106,3 10s., allowance to cover cost of new services, £600; net profit, £463 10s. Tho report continues:—"The statements'prove that gf can be sold to consumers at Lower Hutt at tho moderate charge of 6s. Bd. per 1000 cubic feet for lighting and cooking, in lieu of Bs. 4d. for lighting, and 7s. 9d. for combined lighting and cooking as at present charged by the Petono Borough Council: further, it must bo noted that a margin of between £400 and £500 will accrue to tho Lowor Hutt ratepayers."

FURTHER DISCUSSION. Mr. London said that the information tho public required was not given. Tho Chairman replied that they were prepared to accopt the word of their advisers. m l„ nn - nj comm euced to speak. Tho Chairman: No more discussion. Councillor Ward: The deputation should be heard. (Hear, hear.) Tho Chairman said they had replied to tho deputation, and the business was finished. Councillor Ward: You have replied, but tho councillors have not. (Laughter.) Councillor Ward mentioned that the Petone Borough Council had reduced tho price of gas by 3d. to Hutt people and Is. Id. to Petono' people. He said that the Petono Council pursued a dog-in-the-manger policy, and they tri ,™ to_ force the hand of the Hutt Council. air. Bunny asked that a special meeting of tho Council be'held to consider tho reports, and, perhaps, someone in authority could speak on Petono's behalf.

The Chairman intimated that a reply would bo forwarded through the ordinarv channel. Tho deputation then withdrew."