GAS PROFITS.

Marlborough Express, Volume XLII, Issue 99, 28 April 1908, Page 5

GAS PROFITS.

The following details as to gas business of the Dunedin City Council will not be devoid of interest to Blenheim ratepayers:—

Speaking of the gas department, Councillor McDonald said it was assumed that the profits accruing from the gas department this year would approximate £9,000, and he had no doubt that when the works were finished the people would have one of the finest money-earning concerns in the Dominion. During last year he had continuously advocated' the re- ! duction of gas to 5s pet l.OuOft. all ' round, and had been repeatedly told I that when the time was opportune the j price of gas would be reduced. They j could imagine his surprise when just ] recently, almost on the eve of the i mayoral election, he found the Gas j Committee contemplated reducing the gas to 5s per 1,000. • On several occasions during the past year he had I endeavoured to point out, on the Gas ; Committee's own showing, that it ! could sell the gas at us and make a ' profit of considerably over £1,000 per ! annum. To explain the position: The ' lowest average per ton of coal the Gas Committee claimed to have got during 1905-06 was 12,912 cubic feet of gas. The average amount of gas carbonised per ton of coal was previously 10,350 cubic feet. Deducting 10,----350 from 12,912 showed an increase of 2,562 cubic feet. In 1905-06 the amount of coal carbonised was approximately 10,000 tons. Say they carbonised 10,000 tons of coal, and get |an increase of 2,562 cubic feet of pas per ton, they would have 25,620,000 ft. of gas more out of the same quantity of coal; the money value, at 5s per I,oooft.' being £6,405. This year they would sell 84,000,000 ft. of gas, and if they reduced the price lOd per I,oooft. it would amount to a total of £3,500, and this, added to the extra charge of 3s per ton. (amounting to £1,500) which the* Committee had to pay, would bring the apparent loss up to £5,000. If" this was deducted from the profit (£6,405) there would still be a profit of £1,405 per annum, besides the enormous saving in meters,, mains, metals, etc. He thought they would agree with him that he was not asking too much from the Gas Committee, especially as he had shown that, on its own reports, this reduction was •only justice to the consumers.