EFFECT IN THE VALLEY

Evening Post, Volume CVIII, Issue 111, 6 November 1929, Page 12

EFFECT IN THE VALLEY

VERY SERIOUS POSITION

The "killing" of the Petone and Lower Hutt Gas Lighting Amendment Bill has como a? a shock to the Hutt Valley residents, who are at a loss to understand why they should be debarred from a unique opportunity to obtain cheaper gas. The Bill had the unanimous approval, not only of the Petone and Lower Hutt Gas Lighting Board, but also of the Petone and Lower Hutt Borough Councils, both of which bodies gave its provisions careful examination before giving their approval. The purpose of the Bill would seem, it is stated, to have been misunderstood by members who opposed it. It is not concerned with the formation or establishment of the Fuel Company, but its sole purpose is to give the Gas Board the right to enter into a very advantageous contract for a supply ofj gas to the board at a figure which' would make it possible for the board to materially reduce the price at which it retails gas to the public. It is true that other provisions did appear in the Bill, but the board was quite willing that these should be dropped. One of [these provisions was that the Fuel Company should have the right.to lay a main through the board's district to connect with the Wellington Gas Company's'main, and the Petone and Lower Hutt Gas Lighting Board was to benefit from this provision by the fact that the Fuel Company had agreed to a sliding scale of prices which fell in proportion to the amount of gas which the Fuel Company sold not only to-the board but to any purchaser. The other provision was the right of the Fuel Company to lay pipes from its works to the Point Howard "Wharf.

The failure of Parliament to pass the Bill is the more difficult to understand m view of the fact that it approved in 1927 an almost exactly similar Bill which enabled tlie Petone 'and Lower Hutt Gas Lighting Board to purchase, if it so desired, gas from the "Wellington Gas Company, the principal difference being that the" benefit to gas consumers in the Hutt Valley under the present Bill is very much greater. It is pointed out that some confusion appears to exist as to the consumer getting the benefit of the reduction in price of gas. Under the provisions of the Bill the Fuel Company contract to supply gas in bulk to the Petone and Lower Hutt Gas Lighting Board, whose clnef concern as a public body is to see that ■ any advantage gained is passed on to its consumers. Consumers who have the electing of the board would not tolerate a body which failed to give them any such advantage, and in any case competition with electric current would force the board to keep down its prices. y VERY DIFFICULT SITUATION. The failure of-the Bill will create a very serious position for the Gas Light ing Board, in that the present works are. now working at absolutely full capacity,, and though at present efficient, are of an obsolete pattern and badly in need of a thorough overhaul, ft the board desires not only to retain its present consumers but to be in a position to meet the very rapidly increasing demand, if is. faced with the immediate problem of securing a new source of supply, as it is certain that the present works cannot possibly eater for the Valley needs for more than twelve months at the out-

The erection of up-to-date works would, cost probably £40,000 or-more, and the question whether tho board's ratepayers would approve a-loan for the purpose would need very careful consideration. NO PRICE REDUCTION NOW. In any case, the big capital expenditure and the scrapping of the old works would eftectively prevent the board considering any reduction in the price of gas to its consumers for many years to come, while under tho proposed contract the large capital outlay would have been saved and an immediate and continuous reduction in the retail price of gas would have been made possible. • Even to enable the board to carry on with the present works for twelve months -temporary expedients, such as the extension of its earburetted gas plant, will have to be resorted to. So precarious is the present position that during last week-end and on Monday, when the board's new carburretting plant was out of action for some three days, the whole of the board's gas in storage was. exhausted, and for a brief period on Monday evening portions of Lower Hutt were without a gas supply.

The chainn i of tho board (Mr. W. D. Lodder) States that so far he has not received any official notice of the failure of the BiH to. pass Parliament.