GAS MANUFACTURE.

New Zealand Herald, Volume LXII, Issue 18941, 12 February 1925, Page 11

GAS MANUFACTURE.

PROBLEMS OF THE INDUSTRY. GOVERNMENT REGULATIONS. ENGINEERS TO CO-OPERATE. The first' annual conference of the Gas Institute of New Zealand opened yesterday. Mr. J. Lowe presiding over an attendance of about 50 dejegates. A cordial welcome was extended by Mr, J. H. Upton, chairman of directors of the Auckland Gas Company. It was very important, he said, that those in charge of a great industry liloe that of gas manufac- ; ture, should meet from time to time for an interchange of views and discussion of matters affecting the welfare of the industry. The circumstances which led io the formation of the institute were reviewed by Mr. Lowe in an interesting address. The decision of the Government to control the supply and sale of gas by Board of Trade regulations was probably the immediate cause of> its formation. The first business of the institute was the sion of a draft of the proposed regulations. Those who knew the inner workings of the gas business were fully aware that regulations in the public interest were not required, it being realised that the life of the industry depended on supplying best value to the public for the lowest possible price. The policy of gas •managers wag not opposition to the regulations! but cooperation, in order to rvkuire enlightened regulations based on thfc British Gas Act of 1920, with certain edifications to suit New Zealand conditions. The regulations yame into force on January 1, arid hatybeen applied, to begin with, only to gafy undertakings in the four main centres, Tplie scope of the regulations would doubtlfjfcs be extended later on. The regulations, on the whole, were satisfactory, but whether they would prove a benefit or a burden to gas consumers and gas undertakings of the Dominion would depend on the manner in which thev were put into practice. The System of Inspection. The regulations did not include power I to make a levy, but it was possible the gas industry might be willing to contri- : voluntarily an amount of, say, three • shillings per million cubic feet of gas sold to cover inspection costs under the regu- ; lations. It was clear the income at iho disposal of the Minister for the purpose of defraying expenses under the regulations would preclude anything; in the nature of -whole time appointments for gas ami meter inspectors and <*as refereas. \ j ,av e given this matter considerable thojfght, ' said Mr. Lowe, '"and sun of opinion that the best course would bo to <ftand over the duties of gas and meter inspection . under the regulations .to the inspectors of some existing department. The staff of the Inspection of Machinery Departaien t consists of mechanical engineers and boiler inspectors, who would be quite competent to undertake the testing ot %ss for calorific value, purity and pressure, and also to test gas meters. If expenditure is to be kept within reasonAble bounds, some such course will have r to be adopted." The British Gas Regulation Act, on which the New Zealand regulations were based, put the manufacture and saie of gas for the first time definitely on a heafc unit base. It did not matter to the consumer, within 'fairly wide' limits, was the declared calorific value of the gas he used, provided it contained the number of heat units for which he had to pay, and in this respect he was amply protected. by the provisions for testing contained in the regulations. The special conditions affecting the gas industry in New Zealand were reviewed by Mr. Lowe, the points covered being the'expenditure on gas mains, manufacture of plant, indenting of supplies, and rates of wages. Coal Supply Dificaliies. , The fact that gas prices were higher m New Zealand than in Great Britain, was explained by various local circumstances. inchiding the greater mileage of mains in proportion to output, increased cost of material, due to freight and customs tariff, and higher rates of wages.. Ips high rate of income tax was also'a contributing factor, the gas companies having to pay tho highest graduated rats upon t-h«r net receipts should these exceed £6OOO per annum. The gas industry also had to face competition from power boards supplied with electricity from State hydro-electricity works. The Government was spending - | huge sums on these schemes and subsidis" ing them in various ways. They were :e----quired to pay neither income* tax nor local rates, and deficits were made good from the general revenue of the State. Other points dealt with by the president ! were the adjustment of disputes and the j general effect of labour legislation upon : workers in the industry, sources of supply of coal and their relative suitability for gas manufacture, Auckland, in common with other New Zealand eras works, drew its principal supplies from the Mainland coalfield of New South Wales and from the West Coast mines of the South Island The supply of coal from Maitland was very liable to interruption owing to the almost continuous labour disputes which prevailed there. On tho various occasions when supplies of coal from Australia had been cut of? the Auckland Gas Company bad been aMe to draw increased supplies from the West Coast. The company was therefore inclined to look, very critically upon any proposals for the adoption of a type of carbonising plant which would still fuGther restrict its choice of New Zealand coals. Programme for Conference. The address concluded with a detailed description of the Auckland and Devonport gas works, plant, and general equipment. The report, was adopted, on the motion of Mr. G. D. Stone, the president being complimented on the preparation of a very comprehensive and complete address. Members were entertained to luncheon by the directors or the Auckland Gas Company, and were taken for a motor excursion to Titirangi in the afternoon. A conversazione was held last- evening at the Gas Company's demonstration room, a large number of delegates and ..their lady friends attending. The conference will be continued flu's morning, when papers will be presented by Mr. G. D. Stone {Wanganui) and Mr. J. J, Rogers (Auckland). Members will pay a visit to the Auckland Gasworks this afternoon, followed by a motor cri\« through the suburbs.