LOWER HUTT GAS SUPPLY

New Zealand Times, Volume XLVI, Issue 10545, 23 March 1920, Page 2

LOWER HUTT GAS SUPPLY

PROPOSALS BY BOARD OF TRADE. The dispute relating to the supply and price' of gas by the Petone Borough Council to the Lover Hutt Borough Council hos agitated the minds of suburban residents for some time past, and now with a view to bringing about a settlemcnt the Board of Trade has written the local authority of the Lower Hutt pointing out that the is one eminently suited to a compromise, and to that end it has offered ior consideration proposals as follow: — “1. That there should bo on amalgamation of the two boroughs; 2, that a. new agreement should be made between the boroughs under which the price at which Petone would sell, and the Lower Hutt would buy, would bo determined on the yearly cost of manufacture as arrived at by the jAudit Department, including a fair and reasonable profit to the Petone Borough Council to bo determined beforehand ; 3. that the gas works should bo jointly owned by both boroughs.” In a note to the suggestions, the Board expressed no opinion with reference to the first, but stated that the second afforded a basis of compromise, even though it might be difficult to operateWith reference to the third proposal the following istatemenb whs made : —"lf adopted, it would be necessary for the Hutt Borough Council to purchase from the Petone Council a half-share in the gas works. Both boroughs would then have equal rights. The price to be paid by the Hutt Borough would, failing mutual agreement, be determined by arbitration, and the following facts should be included in the reference to arbitration: 'That the unexpired portion of the present agreement has four years to run* that the Lower Hutt has been supplied with gas since the establishment of the gas works; that the Lower Hutt at present consumes 40 per cent, of the output of tho gas works and the probability that thh percentage will be increased in future: The board strongly recommends a settlement of the dispute, ns it ia obvious tha-t if it is not settled the result will eventually be the establishment, of two gas undertakings in the Hutt Valiev. This would certainlr mean that either ■undertaking could then supply gas to its consumers at as low a price no if only one gas works were in existence and on this consideration alone the proposal for joint ownership should find favour.' The foregoing statement was read at a meeting of the council held last night, but as there was not a full attendance of councillors it was resolved that a special meeting bo held on Tuesday next, when tho suggestions of tho board will be fully considered.