GASWORKS DISCUSSED

Otago Daily Times, Issue 27390, 16 May 1950, Page 6

GASWORKS DISCUSSED

Port Chalmers Council SPECIAL MEETING TO BE HELD SOON That a special meeting should bp 'held in about a fortnight to decide whether the gasworks should or could be closed, was a decision reached at the meeting of the Port Chalmers Borough Council last night. Discussion on the gasworks arose when Cr W. D. Campbell moved a motion: “That the resolution of the council to close the gasworks on July 1, 1950, be rescinded and that the question be reviewed when the decision of the Supreme Court has been reached.” Cr Campbell said that at the last meeting of the council, it was pointed out that there were two resolutions concerning the gasworks on the minute book, one to take certain proceedings in the Supreme Court and the other to close the gasworks on July 1. The motions as they stood were in conflict. As proceedings in the Supreme Court were under way, it was desirable that no action should be taken to close the works until the Supreme Court had given its decision. Cr L. G. Crawford then drew attention to the fact that the recent cuts in State subsidies had resulted in an increase of 43s a ton for coal, including freight. As the borough gasworks used 280 tons of coal a year, the cost of running the works would be increased by about £6OO. Cr G. Forgie: We just cannot carry on any longer with the increased costs. Cr Forgie then moved the following amendment to the motion: “That the proceedings instituted by the council in the Supreme Court be withdrawn and that the date for the closing of the gasworks be put back to September 1, or such an earlier date as circumstances recessitate; further, that the Dunedin City Council be requested to give favourable consideration to the immediate application for electric ranges from Port Chalmers gas consumers; and further, that the Government be requested to validate any action taken by the council in the matter,' should it be proved that no statutory authority existed for such action.” Speaking to the amendment, Cr H. S. Watson said that since the council acquired the gasworks in 1919, they had resulted in a loss of £22,000.

“The working loss last year was £506,” Cr Watson said. “This year there will be an increase in costs of £6O0 —we definitely cannot find the money unless we raise the general borough rate to. the. full legal limit, which would bring in about another £3OO. We would still have another £3OO to find. The only thing to do is, as the amendment suggests, extend the closing of the gasworks by two months, so that consumers will have ample notice.” Cr H. Williamson said that he could not agree. The whole question should be reviewed in the light of a decision from the Supreme Court. Cr L. J. Neilson: Yes. What would be the position if the Supreme Court did not grant us permission to close the gasworks? Cr F. C. Smith: If the City Council could not guarantee a supply of electricity, then what would the position be? If they could guarantee this by September 1, I would be in favour of the amendment. Cr Crawford then moved a further amendment —“ That when the town clerk goes to Wellington he interview the Price Tribunal authorities regarding an increase in the price of gas, and that, he also interview the Minister of Internal Affairs regarding the Government’s attitude to the closing of the gasworks.” On the return of the town clerk, Cr Crawford said, a special meeting could be called to discuss the matter, probably within a fortnight. Cr Forgie’s amendment was lost, and that moved by Cr Crawford was carried.