AUCKLAND GAS COMPANY

New Zealand Herald, Volume LXXII, Issue 22026, 5 February 1935, Page 5

AUCKLAND GAS COMPANY

HEAVY TAXATION CHARGES PROGRESS DURING YEAR KEEN COMPETITION FACED Tho heavy charge for taxation, direct and indirect, which is borne by the Auckland Gas Company, Limited, was referred to by Sir George Elliot, chairman of directors, at the annual' meeting of shareholders yesterday. Sir George said the amount paid in income tax for the year ended December 31 was £28,281, equal to 46 per cent of the amount paid in dividends. Sales tax and exchange added considerably to the expenditure of the company. All imported goods and most of the local purchases were charged with one or possibly both of these imposts. In' spite of repeated representations tti tli© Government, tho company had been unable to obtain any redress of its grievances with regard to the nontaxation of competitive local body electrical services. However, it was pleasing that the proposal of the Tariff Commission to discontinue duty of 20 per cent on electric cookers, while maintaining a 25 per cent duty on gas cookers, which proposal had been strongly opposed, had not been adopted by Parliament. The chairman said that during the year gais service pipes had been connected to the premises of 643 additional consumers, bringing the total to 49,920- Nearly five miles of new mains had been laid, making the total 682 miles.

Discussing the accounts, which were reviewed in the Herald on January 25, Sir George said that the increase of £12,000 in. the depreciation allowance was accounted for by the increased percentage which the Commissioner of Taxes had agreed might bo written off in respect of street mains and services. The increased amount was retrospective for one year. Income tax reserve account now stood at £60,000, sufficient to cover two years' payments and it would not be necessary to add to the account in the immediate future. The report and balance-sheet were adopted. The retiring directors, Sir George Elliot and Mr. V. J. Larner, were re-elected and Mr. F. C. Buddie and Mr. N. A. Duthie were reappointed auditors. Tribute was paid to the work of the directors and staff and a vote of thanks was passed. In urging further support for the company from shareholders, the general manager, Mr. J. Lowe, said that nowhere was the competition faced by the gas industry more keen than in Auckland. Gas would always be able to hold its own more easily in England, where labour and coal costs were cheaper, and in Australia, where hydroelectric competition was less severe.