NOT CLOSING DOWN

Hauraki Plains Gazette, Volume 60, Issue 4367, 11 December 1950, Page 6

NOT CLOSING DOWN

WAIHI GAS WORKS MINISTER’S REFUSAL BOROUGH COUNCIL PROBLEM Legislative authority for the closing of the Waihi municipal gas works will not be given. This was stated in a letter fi'om the Minister of Internal Affairs, Mr W. A. Bodkin, read at the statutory meeting of the newlyelected Waihi Borough Council recently. The Mayor, Mr H. J. Pickett, in commenting on the investigation of the borough’s affairs carried out by the Local Government Commission during the term of the previous council, stated one of the vital matters considered by the commission had been the gasworks, which was a serious problem. An increase in the price of gas had become necessary and an application had since been made for legislative authority to close the works. He read the reply received from Mr Bodkin, dated November 23, in response to the application as follows:— “I wish to refer to your letters of September I'B and October I'B in which you-,raise the question of the promotion of legislation authorising the closing of the Waihi borough gasworks. I have considered your representations but I regret that I am not prepared to agree at this stage that the settlement of the gasworks problem should 4je dealt with as a separate issue. I feel that this question is somewhat bound up with the whole question of the borough finances which is under consideration at the present time. It is appreciated that the matter is one of urgency as far as the borough is concerned- and a decision will be conveyed to the council as soon as possible. There is, however, a further issue involved and that is the general policy with regard to gas supply undertakings. This question is at present under consideration 'by a special committee set up by the Government known as the Gas Industry Committee and, until that committee' brings down its report I think it would be premature to settle individual requests for legislation permitting the closing down of gas supply undertakings.” Commission’s Report Mr Pickett then read an extract from the Local Government Commission’s report to Parliament on its investigation of the Waihi borough, as under:— “In the year 1*94'8 representations were, made to the Government by the Waihi Borough Council concerning the financial and economic position of the Waihi borough. The council had submitted certain proposals to the Government with a view to assisting the borough during the period of transition from a mining town to a rural and industrial centre. There was every indication at the time that the Martha gold mine, employing some 350 .men, would be closed down. The finances of the borough had been a matter of considerable concern for some years past owing to the progressive decline in gold revenue payable to the borough council, and also to the fact that the rateable values of the borough were too low to enable the loss in gold revenue to be made up from rates levied. Further difficulties had arisen resulting from the costly maintenance necessary in a borough with such an extensive and scattered district, the annual loss which had been incurred for some time in maintaining the gasworks, and the lack of adequate plant and machinery to undertake essential public services. On April 4, 1949, the Minister of Internal Affairs requested the commission to review and -report upon several particular matters -relating to the borough. The staff of the commission undertook a preliminary factual investigation at Waihi on June 29, and certain factual information was also obtained from the Ohinemuri County Council.

“On the completion of this preliminary survey the commission proceeded to Waihi on August 10, 1949, and an investigation was conducted at the borough council chambers into the various matters to which the commission’s attention had been directed. The mayor, councillors and executive officers of the Waihi Borough Council were present at the investigation as well as the chairman and executive officers of the Ohinemuri County Council and the Thames Valley ElectricPower Board. Evidence was obtained from the representatives and officers of the various local authorities as well as from a former town clerk of the Waihi Borough Council. An inspection of the borough, including the Waihi beach area, was made in order to satisfy ourselves as to the physical difficulties under which the borough operated.

“Considerable assistance in our investigation was rendered by the frank and realistic manner in which the various local authorities tendered their evidence. A careful analysis was made of all matters referred to us, and a report, with recommendations, was furnished to the Minister on October 21, 1949.”

That report and 1 recommendations on the borough had never been made available to the council and they could not frame a policy until it was made public—they were just marking time, said Mr Pickett, who said he made the explanation in fairness to the excouncillorS who were not with them that evening. Must Miake Decision Reverting to the gasworks, the mayor said that that was one important matter that would have to be considered at the next meeting. The gas committee would have to make a de cision in view of the letter from the Minister of Internal Affairs. The loss of £3500 in subsidies was something they could not stand and if the Government expected them to keep the works going they would have to reconsider the question of a subsidy and also a plant subsidy. A capital expenditure of £7OOO was necessary at the present time at the works and if they were forced to keep them open owing to the shortage of electricity then Those who forced them to do so should help to pay for it. The matter could not be let go on indefinitely.

A comprehensive report was being prepared by the manager, Mr P. I. Finnel, and this would be brought before the gas committee at its meeting.