Port Chalmers Gasworks Will Close On August 1

Otago Daily Times, Issue 27450, 25 July 1950, Page 8

Port Chalmers Gasworks Will Close On August 1

After many years of service to the Port Chalmers Gasworks will cease operations on August 1, because of mounting operational losses. Since the Port Chalmers Borough Cpuncil acquired the gasworks from a private company in 1919, its losses in capital charges have amounted to £11,231.

With the increased cost of coal as a result of the recent lifting of subsidies, the service would have become much more uneconomical. About £9OO was lost in each of the past two years and this year it was estimated that an additional £6OO would have been lost because of the increased production costs. When the borough council confirmed its decision to close the gasworks, at its last meeting it agreed jthat compensation should be paid to all major gas consumers, provided it had legal authority. It proposed compensation in lump sum payments of £lB to users of large gas ranges, £l2 to users of standard gas ranges and £3 10s to users of gas coppers. Users of gas rings and other small fittings would not be compensated. Letters from solicitors on the closing of the gasworks were discussed in committee at the meeting, but the council replied that it. had no alternative but to discontinue the supply of gas.. Should it be established that the council has acted without legal authority in closing the undertaking, it decided, application would be made immediately to the Government to validate its action. No decision has yet been made by the council as to the disposal of the gasworks. Of the plant the main equipment is the retorts, which are practically worn out. Although they are heavily coated with carbon, it is considered too risky to clean them, because they are liable to breakages. Whether the gasworks should be closed has been a contentious question for many years. Although the council has made what it considers a final decision, the trouble does not appear to have been overcome. The Port Chalmers Gas Consumers’ Association, at a meeting, decided that the proposed compensation was entirely inadequate and resolved to seek a legal ruling on the closing of the gasworks. Mr H. Williamson, a member of the committee of the association, who resigned from the Borough Council at its last meeting, stated that he wanted a free hand in any legal proceedings which might follow. He was opposed' to the decision of the council because it had eliminated the Supreme Court case in which a legal ruling on the closing of the works was to be obtained.