MEETING THE CRISIS

Evening Post, Volume CVIII, Issue 117, 13 November 1929, Page 12

MEETING THE CRISIS

BOARD AND' COMPANY

PLANS FOR THE FUTURE

The municipal business of the Petone and Lower Hutt Gas Lighting Board at its monthly meeting last night was a discussion of Parliament's failure to pass the Bill promoted by the board, and a decision on what to do for the future. There were present Mr. W. G. Lodder (chairman), Messrs. W. T. Strand, S. Clendon, W. G. Meldrum, V. E. Jacobson, the secretary (Mr. \V. I". Sturman), and"the manager (Mr. H. Appleyard). The secretary read reports of conferences that had taken place between the board's representatives and representatives of By-Products, Ltd. It had been arranged that an expert (Mr. Eobert English), in the service of the company, should visit the board's works and report upon them. The report read as follows:—"I understand the main object of my report is to advise you us to the best means of carrying on your gas business until you are in a position to either purchase gas from the By-Products Company or erect the necessary plant on your own works. Now, the position is quite • a unique one, and to give you proper advice one should know definitely if you are going to make the gas yourself or obtain" it from the By-Products Company. . . . You have either to prepare your plant to manufacture the necessary gas for future requirements, and erect plant accordingly, or the By-Pro-ducts Company have to commence erecting their works to supply you at the end of that period. I will treat the subject' with the idea that you will be in the position of being able to purchase the gas from the . By-Products Company, say, within the next two or three years. This report is based on the following figures. Your present output of gas per annum is given to mo as 110 million cubic feet, and your average increase output for the last three years has been approximately 12 per cent, per annum or more. Taking compound increase for the next three years at the above rate, your output at the end of this period would be equal to 154 million cubic feet per annum. This would mean that your plant will have to be capable of producing this quantity of gas during the second and third year from the present date. This output per Annum represents an output of 422,000 cubic feet per day. . . . Should your re--tort houses be put into proper order, and properly managed, they should produce, even with using New Zealand coals, 351,000 cubic feet'per day; add to this the quantity of gas made by tho carburetted water gas, 160,000 ; cubic feet per day, your total make ■:■ should be 511,000 cubic feet, which should be ample for all requirements. =To obtain these results, it would be necessary to rebuild at least six of your present' beds, spread over a period of, say, two years," as well as other works detailed by Mr. English. "The cost to do this would be about £400 per bed, and as it would be necessary to repair at least six beds' the total cost would be about £2400. ■ • * The saving during that period, from results obtained, would be more than double the cost. If you wished to be doubly secure, you could erect two more beds of retorts at the end of No Sretort house, which would cost about

The remainder of the report dealt >/with the operation of the plant, - analysis of the gas, and estimates for repairs suggested. The following extract from the man- : ager's monthly report to the board gives his view of the position:—"The .■ chairman and myself have discussed matters in connection with immediate future requirements to put us in a safe position. I am at present having one ■■- bed of six retorts renewed, and immedi- :- ately this is complete, a second and , third bed will be renewed, and as ' soon after as possible we should have a further three beds renewed. At the present time, our retorts are producing - only between 3000 and 4000 cubic feet ■ ; of gas each per day, but when they are ; renewed' they will produce up to 5000 - cubic feet with New Zealand coals and 6000 cubic feet with Newcastle coal. ": The present condition of the retorts is due to the length of time they have been working, and the very severe con- ' ditions they were subjected to during the last six months. With an additional 'two beds of six retorts each installed, we should be in a safe position to carry ' 6s over the next twelve months, and it will give the board time to decide "■jupon its future,policy, either to expand ithe existing system or to consider Very carefully the advisability of arranging for' the installation of an up-to-date carbonising plant." "A PRECARIOUS STATE." ..-, A letter written yesterday by Mr. C. ? B. Norwood, "representing By-Products .£ Ltd., to the chairman of the board was read as follows:—"On Ist July last a 5 contract was entered into between . your board and myself as trustee for the ; company by which we would undertake to supply to you your entire re- ; quirements of gas on a sliding scale as to volume which we mutually agreed was greatly advantageous to your board and its consumers. I regret now to have to inform you that the Bill promoted by your board not having received the full attention and confirmation by the .Government, the whole agreement re- ", ferred to above is in a precarious state, .. and I have grave doubts that the fin- .. anciers overseas whom I represent will Ibe able to see their way to hold up £350,000 which they had agreed to find for these- new works until the next, session of Parliament. Apart altogether from my own company's very considerable loss, due to the purchase of the Petone site and arranging for the coal supplies from the West Coast, I am aware that your board is placed in a very awkward position to provide the growing requirements of gas in your district. I am quite sure your board .-.will agree with me that the failure of Parliament to realise the importance of this Bill constitutes a severe setback to ... the progress of economic local industry within the Dominion, apart altogether from its beneficial effect upon the ever-recurring seasonal unemployment, the loss to gas consumers over - a wide range of territory within supply roach of the works, which practically amounts to every house, is a serious matter which cannot be overestimated. The mining, transport, and processing of 300 tons of coal daily from' the West Coast to Petone and the consequent re-transport of the products could not fail to create considerable labour and commercial activity ■'■ in our midst, and it is regrettable that this should be so lightly turned aside by our Parliamentarians. Providing the following will meet with your board's approval, I propose, after putting a •■ frank statement of the whole position ••'■ before our London friends, to ask them "' if they will permit their agreement to ; remain open until after next session of * Parliament, wh^en, it is my personal \ opinion, the Bill can be put through ; the House giving the requisite powers „ to your board and to the proposed comj pany to proceed with the works. Please .-■ understand that this is only a sugges- • tion by me (which must be confirmed by London) as a last effort to try and secure 'this overseas capital which, if

unsuccessful, will undoubtedly put back the processing of New Zealand coal for many years to come."

The chairman (Mr. W. G. Lodder) said that tho board had been through a lot of trouble in' the last few months, and had just experienced a great disappointment in the failure of tho Bill to pass the House. In his opinion, if the member for the district had not gone south when he did, ho could have reintroduced the Bill and got it through, -the greater part of tho opposition having by that time been withdrawn. However, the Bill was dead, and it was for the board to see that tho people were not put to any inconvenience through this delay. Mr. Lodder asked authority to order extra plant, saying that he thought it necessary to instal two new beds of retorts. The carburetted gas plaut had got the board ovpr a difficult period of shortage, but they had had two setbacks with it, and they might get a more serious one, as the plant might not stand up to the intense working being given it. Mr. Lodder thought that the board should continue with its present system of gas production for a few years rather than go in for the more modern vertical retorts. These would be much more expensive, 'and with the present horizontal retorts all New Zealand coal could be used if necessary. Mr. W. G. Meldrum said that tho board should take immediate steps to instal what plant was necessary. Even if By-Products did come to tho Valley it would not be for another year, and the board could wait no longer. DECISION OF THE BOARD. It was decided on tho motion of Mr. Meldrum, seconded by Mr. Strand, that the board should proceed immediately to instal two new benches of retorts, making provision for the installation ultimately of five benches. It was left in the hands of the executive to have plans and specifications prepared, and to call for tenders. MR. STRAND SPEAKS OUT. Later in the evening, Mr. Meldrum asked the chairman whether it was to his knowledge that the By-Products works would kill vegetation within a mile. Mr. Lodder replied that the By-Pro-ducts works would be the same as any other gasworks. They used the same system as was'used in tho board's present works, except that with the ByProducts scheme, the coal was carbonised at a very much lower temperature. He could not say anything with regard to the production of chemicals, manures, etc., by the works, but he .did know that there was a similar plant in tho heart of Glasgow, and it had not killed anyone there.

Mr. Meldrum: "Tho yarn is deeprooted here.'1'

Mr. Strand said that those responsible for what had beeu done against' the scheme in the last few months should feel the responsibility laid upon them. Destructive reports, without foundation and void of fact, had been circulated. As to the actions of different interests and of local bodies that should have known better he felt too angry to speak, as he might say too much. A blow had been delivered that was detrimental to the whole of New Zealand, and when it was realised that £55,000 to £60,000 per annum could be, under the new process, passed on as saving to the gas consumers without the companies or board losing any profit, it would be seei. how seriously the Valley was affected. ■