GAS SUPPLY.

Otago Daily Times, Issue 20644, 16 February 1929, Page 10

GAS SUPPLY.

EXTENSION TO GREEN ISLAND. COUNCIL COMMITTEES FAVOUR PROPOSAL. At the meeting of the City Council on Wednesday night the Gas Committee will report having further considered the matter of the proposed extension of the gas system to the borough of Green Island, and that it had also remitted the matter to the Finance Committee for report on the financial aspect. As previously reported, the departmental officers had received definite undertaking of support from 109 householders, and the committee was satisfied that, as the district was a growing one, there was every possibility within a few years of the contemplated extension proving remunerative to the department. It should not be overlooked (the report states; that a progressive policy demanded being some distance ahead of actual present-day requirements, and as the department had the means of increasing the output of the works it was necessary to look for new fields for further developments.

The initial outlay,, as previously reported, was as follows:

Extension of existing six-inch main in the Caversham Valley road to Emerson street, 228 chains of six-inch main at £2O per chain, £4,560. Reticulation from Emerson street, 59 chains of four-inch main at £l2 10s per chain, £737 10s. Reticulation of other borough streets, 154 chains of three-inch main at £ll per chain, £1694. Services and meters for 109 consumers at £5 each, £545, totalling £7,536 10s. The cost would be a charge against the gasworks loan account. The proposal provided for the department supplying Green Island residents direct just as in the case of the city, and for all practical purposes, therefore, the Green Island area would be simply an extension of the city reticulation and supply. The committee accordingly again recommends that the extension be approved, and that authority be now granted to proceed with the necessary works at the total estimated cost of £7536 10s.

The Finance Committee will report that the yearly charges for interest, sinking fund, depreciation, and renewals would be £732, and the income for the first year was anticipated at about £545. That left a deficiency of £2OO. On the other hand, the proposal opened a new field for future development at a time when the department was capable of (and anxious to) considerably increase its output, which meant a reduction in tllG unit cost; and as there were also good prospects of increasing business in the area proposed to be served the committee is 6f the opinion that the outlay as recommended by the Gas Committee is warranted.