MUNICIPAL GASWORKS.

New Zealand Herald, Volume XLI, Issue 12608, 24 June 1904, Page 3

MUNICIPAL GASWORKS.

i THE CITY COUNCIL AND GAs'" V^ i \ THE CITY COUNCIL AND GAS j; | ' ' , • COMPANY. , ! NEGOTIATIONS. FOE PURCHASE *TO $ BE OPENED. ' "■>' '■■■■ „, Thie question of the imimcipilisaliun of the .; ! Auckland gasworks was brought.before the City Council last evening by the Major ■ (Hon. E. Mitchelson), on whoso motion a • resolution was carried to the effect thai the j Council enter into negotiations with' the 1 Auckland Gas Company for the. purchase of 1 its plant. ; .The Mayor moved as follows:--"That the Council enter into negotiations with the - r Auckland Gas. Company, with a view to the 1 purchase of their property-and plant sup- ' plying gas to the city and adjacent suburbs." --. 1 In moving the resolution His Wowhip ; said ;'v J he need make no e<:r-u,e far putting hit re- : solution on-tbe order paper, in view of the . world-wide tendency towards the mnnicipali-;> • sation of light. When. they considered the ;"> J success that had attended the municipalisatiou of gas .in all the hwrge English cities they would agree l thai they would be doingll a jjood thing for the citizens of Auckland in ' adopting the system, here; Jn 1900 there ' were- over 200 municipal in England supplying gas and making a, profit" at the '•■ v ' rate : of; £1,000,000 a year, ; after v providing iv all expenses and interest, besides largely re- ; j dnwngthe/price of; gas. In Glasgow, where l | the : whole of fhe gasworks had been pur- ' • i chased by the corporation, the? price had sU " been reduced from 4s 7d40;2s 2d per 1000 ft, *~ and,the revenue increased in one -yea; v °from W> ? £235,900 <to £605,800. Birmingham;; in *17 *#" '~ years, made a profit of £714,000, and during ■ tint period reduced the price fiscal Id to 2s Id. ' Manchester, the pioneer corporation ■ in this movement, had;in' 50 tyears aroum;;- • latod an excess of assets of,£900,000," the , ;.: annual profit being £60,000. Bradford, up ': to 1894, had accumulated a profit of £373,609, 1 and had; reduced the, price from 3s 6cl to 2s 1 3d, no charge being made for (Street lighting. 1 Leeds had reduojd the prie« to 2s 4d, and ».. had a surplus of £215,227, the annual profit 1 being £13,259. The English Gasworks Act ' formerly fixed the limit of profit at 10 per ■■ 1 cent.; but this had been reduced" to 7 per ; cent. ' The' Act 'regulating the Auckland 1 Gasworks, .which was passed •in 1871, fixed ; ; th« maximum dividends that could be paid to shareholders at 20 per cent., and tlivi- ' t dends as high as 15 per cent, had been paid (j ; by the company. ;?,It , was ? absurd that :at the .. present time any gas company shonidfFbe^l allowed to earn a profit of as high ass 20 per \ cent, J for its . shareholders, \ such a | rata S being I. excessive.""A motion ;;iri; ; regard to electric ' lighting had been put Lploio the Council,, ' but whilst this was a very pood thing in -■' ' theory it- would unreasonable to ask the r; . ratepayers to sanction the installation !of *a f -p] expensive eleotric lighting system to be tor : in opposition to the Gas Company. The' better plan would be to negotiate with the . Gas Company for % acquiring ' their property before going in for'en electric system, and V thus avoid competition. He referred to the i"'i success ; which' had attendee! the manufacture ; of [current in connection with the refuse destructor at Ohristchurch, but when, he said, ~ it came to a question of lighting a city by . means of ; powar-- which had to be fed by r^i coal, it was. quite - another question., He alluded to } t the advantage of , electricity over *•» ; gas in regard to health amd cleanliness^ and said that on these accounts the former wa» \ | often preferred, although it ' might, not be ' the. cheaper. For two successive years- fh* , Municipal Conference had? .endeavoured to s induce the • Government to pass an Act giving - municipalities . power to compulsoTily .'■ ao-'l. quire: gasworks, .andvh»','believed another • similar .5 attempt ;"would i3l made. this year. .- He did not think, however, '■ even if such an-i-Act were passed, "that they would be able to . acquire the Auckland ■ gasworks cheaper j: ! ; than by negotiations; At the; present time the'gasworks were owned 1 by/ companies is 23' towns in New Zealand. , >.« by tho oor« )\ . prorations in 12 towns only, ■'■{ i.'„. ;.; ■'•:;;'"'.- - I; Mr. J. T. Julian seconded 1 the motion."-^;: I ; Mr., J. Court said he was in the Birniiag. ham Town Hall when Mr. Chamberlain^'!V; pounded the scheme for the :inunicipali.-,ati.oa,' ' I of the gasworks there. Tha immediate .re- : , sult' of adopting that scheme was a': reduc-:' '{ I tion, in price from"3s-Id to :2s 3d. In 1899 these gasworks yielded over £30.000 towards fi'} tip. reduction or! the rates.. 'He believed: that the Auckland gasworks could he pur- ' chased at 1 a reasonable price,, arid [that; » big :.h' profit could be made by -he Council ' running '. : litem. At any r.itt«, ihey. would make snfli-' •':' cient to pay the interest on'* the;; loan.'» re-' )>:; j quired, ! and probably also on the loan which would be required for the new drainage sys- "^ tem. • Mr. M'. .Casey:; Whut is th© position of the- -: ■ Gas' Company* f Mr. A. J. Jintncan;^;e ry ;good..-(l^^g ter.) "■'i Mr!,, Casey :l I mean" what " concessions ' have '< > linen given 10 th,» company,, and are they for all time? iSeveral members t Yes. Mr. Casey: Where do«s the Council com* ;' iMi*."Julian: Nowhere ' but ? ; we want.' to eg \ Mr. Casey said the Council would be taking a big contract hand in undertaking * r to buy out the company;. company's' po- . sition was a very strong one. r .? : & ; The Mayor: That is all the more reason, why wo should not fightHhem^:V^^i?V||?|^ ' :Mr. Casey: If we electric lightiris and run it successfully,'; .the/ chances -are V'i that we shall ; get ; better V terms ' from'the . ©§>■' Company. : -' 1| l'i r*y Mr, Entrican said be.thought the Mayor's miction was in the- right direction/-.-' .' „ . ' i The motion was carried unanimously and : the matter referred to the Fiujvuce Com--^^ , mittee to take action;upon; : -A''^V#ls£^ ... "