THE PRICE REDUCED. THE BOROUGH COUNCIL AND THE GAS QUESTION.

North Otago Times, Volume XXXVII, Issue 8002, 15 June 1894, Page 3

THE PRICE REDUCED.

THE BOROUGH COUNCIL AND THE GAS QUESTION.

groatnr facilities for the ratepayer*! taking in tho «ns instead qf using kerosene. Mr Hamilton moved an amendment that tlio gas be not reduced in price. If thoy thought they should reduoe tho gas thoy nhould do it in the summer time. Mr llodlcy aaoonded the motion. He would gladly boo the surplus go to 0H f ubliNh u sinking fund, but further 'linn that ho would not go at prosent. Thoy tihmild hi>vo 7 por o<-nt or 8 per cent pmlif out of tho g'lHWorka. JJo pointrd out that tho prico of qua was oheaper in Oaimmi than in Timimi, und in Dunedin he stated that tho City Council mado from LJKXK) to L4OOO out of fchoir ga« supply, and (ho Oumuru Council wnt oniltled to provido for oontingunoius to make 8 ptr cent out of tho gun, and the balance could bo dflvoto I to oxtonding tho mains, And tho establishing of a sinking fund to pay of! tho d«bt. Mr Dttvidnon supported the motion. It was not fair to tho ga« consumers to oke out deficits in other departments with tho surpluses from tho gas supply. Ib might hare been imtifiod in days gonu by, but now they did not require to do these things, nnd thn g>h should bo put on a buflinoHelilfe bnaia Mr Meek said th.»t if a proper account had boen kept of the gag works ho belioved that the debt- of L 9600 would have bcon extinguished long ere this by tho amounts annually taken from tho surpluses on tho working nnd made to balance o>hor account*. It whs not right to do this, and ho would support tho motion. Consumers could not be expected to contribute moro than actually paid for tho cost of the manufacture of tho gas. Tho Borough was different to a private company, and their gas works, so long as thoy paid for themselves, woro for tha bonofit of tho ratepayers. Mr Bee said that were tho gas roduced thero would bo moro consumers, and were ib still lowered to compete with kerosone, I coal, etc, it would bo still moro largely consumed ; while the coifc of the larger production would not proportionately in- j cro^so. Mr Atkinson thought tho g*s was not too dear, and thoy should remember thnt two hotels using from L6O to L7O worth of gas would bo oft tho consumption list. Mr Fairley wou d also support the amendment. He did not think tho profit was too largo, nnd they should set about reducing the loan on the g»s works before reducing tho price of gas. Mr Vornor aIBO supported the amendment. lie urged tho oxtonsion of mains in the streets with tho surplus, so as to bring gas noar to tho doors of all ratepayers. Bec»o.Reof the expense of laying mains applications ("Mr Olirei's, Kxo «tro«t) had boen refusod. Tho Mayor said that was not within tho last three or four yean. Mr Brown pointed out thab sovbral years ago thoy wanted all tho money from , the high priced gns to help to p*y their I interest on waterworks loons, and could not affoid to bo enterprising ; but applications had not been refusod recently, and ho thought thoy should, if pomiblo, bring down the price of gai to oompoto with kerosene. The Mayor snid ho was instrumental some years ago in having tho prico of gas reduced, expecting to sue a larger consumption. But such had nob beon the case, and he did not think in thin instance thero would bo an increase, and they should m»ko every provision to meat casos of loea by accident, the liquidating of tho loan, and tho exten* sion of tho supply. Mr Rule's salary was now boing properly apportioned between gas and other things, and ho did not think that too much was being mado otifc of tho gus, viewing possiblo contingencies! and in tho face of a previous reduction not leading to increased consumption. Mr Aitkon, in reply, said that the reduction soino yoars ago did not go far enough to induce ratepayers to use ib instcud of kerosone for lighting purposes. They shold look to m.iking their town attractive, and also to cheapening the cost of living in it. Many people with means might bo induced te come and settle in Oamtiru if the gas and the rates woro lowered. They liked the climate and tho surroundings, but their high rates and do<tr gas were apt te frighten thorn away. After some discussion tho motion was carried by 6 to 5. Mossr/s Hedley, Hamilton, jK\»irley, Vornor, and Atkinson votod for tho amendment, and Messrs Mock, Aitken, flrown, Davidson, F.imilton, and 800 for tho motion.

At last night's meeting of the Borouerb Council Mr H. Aitken mored tho motion of which he had given notice, that the price of gas be reduced from 15i to 12s 6d. He mado his motion in terms of tho recommendation of the Uaa Committee, which was as follows : " That, with reference to the selling prica of gus, wo rocommond that the nominal price be reducod to 12s 6d per 1000 feet with a discount of 3s 4d per 1000 feot to consumers of loss than 7000 feot per month and 4s 2d to those over 7000 feet per month for lighting purposes, and 5s lOd por 1000 feet of gas used for cooking, heating, or power purposes ; this to come into efleot from and after the Ist of July, 1894 ; terms as before," Mr Aitken argued tbab it was tho duty of the Council to lighten the burdens of tho citizens as much as possible, and if those proposed reductions were carried out they would havo still a good profit. Tho gas consumers had contributed largely to the funds of the borough. The profit in 1888 was LBl6 6s 9d, in 1889 L 312 9s, in 1890 L 699 10a, in 1891 L 371 (a reduction in prico was made from this year), 1892 Jjl39, 1893 L 275, and in 1894 (up to March 31st) L 297 17s 2d. Bub that was not all. The whole of Mr Rule's salary was charged against the gas department up to this yeur, when only part of it was charged, The gad department was also charged with interest on L9BOO, and the rates and water accounts to LB9 were also paid by tho gas department. Now tho net cot>t of the manufacture of gas, including office ex* penscs (excluding interest), was 5s 2£d per 1000 ; and adding interest, cost of new plant, rates, and water, amounted to 8i o^d por 1000 feet; and yot consumers were charged 20 percent more than the actual cost. In times past it would be seen that tho consumers had contributed largo amounts to tho general revenue of the Council, and it was time they were relieved in all fairness of this extra amount of taxation — a special tn\ which was not necessary. The gas works should be made to pay, but they had always p»id, and what his motion would now effect was that instead of taking tho money out of their consumers' pockets it was Id bo loft in tl>«m, while at the same timo tho gasworks would be abundantly remunerative to the Council. The gatworks belonged to the borough, and the ratepayers should be offered the advantages of cheap lighting. But even At the reduced rate there would be a surplut, as it would only absorb about LlB7 per annum, and tho lessening of the price would lead to increased consumption. Mr Brown seconded Mr Aitken's motion. He thought that the surplus accruing from tbo salo of gai, even after the reduction was effected, should be devoted to a sinking fund to reduce tho debt gas the works »nd the extension of the on maim throughout) tho towo, to offot