THE PRICE OF GAS

New Zealand Times, Volume XLIII, Issue 10028, 20 July 1918, Page 9

THE PRICE OF GAS

DISPUTE BETWEEN HUTT AND PETONE COUNCILS.

The Hutt Borough draws its supply of from the Petone gas works, and some time prior to the start of the war an agreement .was entered into by the two councils whereby’ Potono undertook to supply Hutt with »» for a certain number of years. The price per thousand cubic foot was fixed on a graduated scale, so tfiat the greater the quantity or gas used by the purchasing borough the less the price would be charged. Since the war the nnces of coal and other materials have enhanced in' value, while the amount of, gas purchased by.'the Huit has ' increased. The Petone ' Council has discovered that while th© agreement may have .been a eat is factory one under normal conditions, tho extraordinary circumstances due to the war have so increased the cost of production that a loss will result, under tho arrangement.

| The Petone Borough Council anj proachbd the Hntt Borough Ornioil j with_th^ ; oHiect securing -an increase ! in price, ■ but as ah agreement could | not be arrived at, the matter was mcnjtioned in the Supreme Court in Cbnm--1 bers yesterday, before His Honour Mr ; Justice Chapman, I Mr E. P. Bunny, who appeared for jthe Hutt Borough Council, asked His i Honour for directions as to the sor- : vice of an originating summons in conj section with the matter. The Quosjtioh to- be' determined,; between., the two > boroughs • whs i whether • the I«oworHntt ! Council had power to consent to the i variation of an agreement for lighting jthat was made before the war. tTnder that agreement Petone agreed to supply gas to the Hutt _ Borough, and owing to the rise in prices of material, coal, and labour, it had asked the Hutt Council to vary the agreement by giving a larger amount than that provided by the contract. The question to be determined was really whether the Lower Hutt Council, being a corporation representing the ratepayers, had any power to make such a concession. In. reply, His Honour said that it would bo better to make the AttorneyGeneral a party to the proceedings. The proper course would bo to order service on- the Attorney-General, as public interest was involved. Mr R. C. Kirk, who appeared for the Petone Council, suggested that it would be an unnecessary expense to serve the Attorney-General. Mr Bunny said that on the ground of public interest ho' could quite see that the Attorney-General should be served. The' Hutt Borough was resisting the attempt by the Petone Council to vary the agreement. His Honour said that the matter was one of public interest as far a s the boroughs were concerned, and the At-torney-General should bo made a party.