HUTT GAS DISPUTE

Evening Post, Volume XCVI, Issue 80, 1 October 1918, Page 3

HUTT GAS DISPUTE

REPLY BY MAYOR OF PETONE

The Mayor of Petone, Mr. J. W. M'Ewan, replied last evening, at a meeting of the Petone Borough Council, to a statement made by. the Mayor of Lower Hutt, Mr. IS. P. Rishworth, last week.

Mr. M'Ewan said that apparently Lower Hutt considered that Petone was not justified in reducing the pressure. This was.' done out of consideration for Petone people, who would not mako a charitable gift to the Hutt. The onus of securing a judicial interpretation of the pressure clause rested.with tho Hutt. In reply to. Mr. Eishworth's remarks,; questioning the bona fides of the replies received from Ministers of the Crown in regard to legislative relief for Petone, Mr. M'Ewan said, "Time will reveal that our public men are not entirely without honour." Mr. Rishworth had fought shy of the statements made at the Lower Hutt conference and a later -conference, that the price of gas to Lower Hutt was based on tho cost of production at the works. The profit to Petone on the gas to the Hutt had at no time exceeded 10 percent., out of which office and supervision charges had to be paid. At the time only small increases in wages and material -were expected. He denied the right of Hutt to participate.in any past profits. The Hutt expected to make £600 on, gas sold during the current year, and, if so,■surely on double the amount distributed by Petone, Petone was entitled to £1200. Petone did not ask Hutt for a share in the profits it made from distri.bution. In the year ended 31st March, 1903,' the Petone balance-sheet showed that after allowing 4 .per tent, for depreciation the liabilities were £10,727, the' assets £12,164, and tho surplus £H37. Hutt was then. being supplied direct from Petone. In the year' ended 31st March,-1907, the liabilities were £26,500 and the assets £24,186, showing a, loss for tho period of £3451. During the four years £16,000 was borrowed for a new holder, retort house, etc. The lighting rights, mains, etc., in Hutt were disposed of to Lower Hutt by Petone' for £4801. _ Id. 1911 the deficiency of 1907 was wiped out, and a surplus of £827 created. The following years were successful till' 1918, when the deficiency on the year's working was £1100. During these years the general account was as.sisted.and.£l3oo set aside for new plant. Petone was ..entitled''to these profits, as ownsr of the business. Lower. Hntt when making comparisons should take into consideration ' the profits made by its own gas sales, and realise that Petono's sales were approximately double, and Petone took all the risks. He had never stated, as alleged by "Mr Eishworth, that Potone made a profit of £2987 from 1915 to .1918: . The actual: profit was £1687— rather less than Hutt's ratio of profit, for three years. The crux of the question was the cost of the production of gas, and Mr. Eishworth could not prove that Petone had ever made more than a reasonable profit >on the gas supplied to Lower Hutt. The cost of production had gone up, by Is s£d per 1000 feet, and there had been no answer to that argument. Hntt had been,asked to pay the •same increase as imposed on Petqne consumers, and an offer had been made to fix future prices on a sliding scale based on the cost of production. -The proposal for Lower Hutt to purchase a half-share in. the works might be a good proposition for Lower Hutt, but not for Petone. A grave mistake had been made by Petone in disposing of its' lighting rights,. etc., to Lower Hutt years ago, and it would be' as grave a mistake for Petone to dispose! of a ' half-share ,on present valuation:' ' ■

, Councillor Brockelbank said it was surprising ihait the Lower Hutt Mayor thought Petone had no right to make profits on gas sold to its own consumers. Hutt consumers -were not fully a-ware of the position. ■'■ ■ ,'■ ■ • Councillor Churchouse said ho -was sorry Lower Hutt had turned down Petone's offer to go through the books, because then the true position would have been disclosed. He was afraid the Mayor, (Mr. M'Ewan) had been out in the rain, and got his ammunition wet, when he made statements during the-recent byelection. . Now Mayor Rishworth. had fired a broadside and shaken bis figures somewhat. No councillor there had had an opportunity^of going, into the figures, and he doubted if any councillor was able to do so. ; ,