HUTT GAS SUPPLY

Evening Post, Volume CIV, Issue 23, 27 July 1927, Page 16

HUTT GAS SUPPLY

A STRING OF QUESTIONS

In connection with the proposal of the Petone and Lower Hutt Gas Board to promote a Bill which will give the board power to purchase gas from the Wellington Gas Company, members of the board waited on Monday on the Lower Hutt Borough Council and outlined the alternative proposals of purchase from Wellington or the erection of new plant.

Mr. Lodder said that should amalgamation of the two boards take place .the gasworks would automatically revert to the joint local body. He then outlined the data already published in "The Post."

Councillor F. Campbell: "Would the quality and pressure of the gas be equal to that supplied at present?"

; Mr. Lodder: "The quality would be governed by Government regulation, and the pressure would be governed, as at present, by the board.

Councillor Campbll: "Would it bo necessary for the board to provide two holders,, whether they purchased the gas or not?"

Mr. Lodder: "If we purchased we would not need to provide holders for a year or two, but if we build our own works we would have- to provide the holders immediately."

Councillor A. F.< Boberts: "Is the value of the holders included iri the £33,000 estimate for the proposed new ■works?" .

Mr. Lodder: "No."

Councillor Campbell: "Is it the opinion of the board that it is not a business proposition to erect new works?"

Mr. Lodder: "Mr. Dougall estimates that we could not produce gas for less than 3s Bd, and the Wellington company proposes to supply for 3s Id. Even taking Mr. Kennedy's figure of 3s sd, this would mean a saving of £1600 a year.' Then there are other factors. We may- have greater opposition .from electric current, and also the Gas Company takes all risks, and when the consumption reaches 200 million feet the company will reconsider the matter of price; whereas, if wo build our own works,' when our consumption reaches that amount we would need another loan for extending them." Councillor Campbell:;"ls it true that the Gas Company is willing to spend about £30,000 to get business' which we are not prepared to spend £33 000 to get?'.' ..' ' '

Mr. Lodder: "The Gas Companj is ablo to make gas cheaper by reason of special rates for coal and freight." Councillors Boberts, M'Bain, and Campbell .were of the opinion that, tho whole of the board's proposals regarding the raising of fresh-capital had not been clearly disclosed.

Mr. Lodder explained that altogether if tho board erected its own works, it would require upwards of £100j000, being. £.33,000 i:or the new retorts and about £67,000 for new reticulation, etc. If the board purchased from Wellington the £67,000 would still be required.

In reply to Councillor Hobbs, Mr. Lodder said that the present cost of production was 3s 9d per 1000 cubic feet. The present make was 13,000 cubic feet per tou^f coal, the cstimato for tho new works was up to 20,000 cubic feet per ton of coal.

Councillor Hobbs said if the cost was now 3s 9d with a make of 13,000 cubic feet it looked as if it would pay the board to orect its own works if they I'would make 20,000 cubic feet per ton.

In answer to Councillor Roberts, Mr. Lodder said that the present plant was now working at its highest efficiency) but it would not be wise to increase tho present style of plant, as all experts were agreed that with a make of 100 million feet the vertical retorts were tho best proposition. In reply to Councillor Campbell, the gas works manager said that tho board was at present supplying gas of 4(J9 thermal units, and the gas company was supplying at about 485 thermal units. Councillor Campbell said ho had noticed, the very superior quality of tho Valley gas, and thought it was*well worth tho extra price "charged for it at present.

Mr. Lodder said ho desired to'make public, in reply to rumours which were current, that ho did not own a single share and was in no way interested in tho Wellington Gas Company.