CITY GAS SERVICE

Wanganui Chronicle, Volume 80, Issue 103, 4 May 1938, Page 8

CITY GAS SERVICE

REVIEW OF PAST YEAR ENGINEER-MANAGER’S REPORT DIFFICULTIES OF RISING COSTS A difficult year has been experienced by the Wanganui Municipal Gas Department, according to the annual repo t of the engi-neer-manager (Mr V 5 , J. Stone), which was laid on the table at a meeting of the City Council yesterday afternoon. The credit balance with which the year was closed was the smallest for a considerable time, but, as Mr Stone pointed out, when the conditions of work and the heavy maintenance programme were taken into account the reason for such position could be clearly seen. Revenue increased, but expenditure did likewise. “The year just closed is the first complete one during which the fortyhour week has been in operation, and there is no doubt that the extra costs incurred through the shorter working week have had a marked influence on the balance,” Mr Stone reported. “Realising that production costs were rising, strenuous efforts were made to overtake them by endeavouring to extend business, and the increase in revenue proves that the effort was fairly successful. However, should production costs continue to increase as they have done over the past eighteen months, then it will be difficult to foresee the result. Maintenance of Plant “The expenditure in this direction was not altogether unexpected. For several years past the council has been regularly advised that sections of the plant at. the works were showing serious signs of weakness, and that sooner or later a large sum of money' would be required for the purpose of reconstruction. It was found that this could not be delayed beyond last year. There is still a considerable amount of work in connection with the reconstruction of lhe plant to be done, and it will bp necessary to continue this in the current year, but when the whole scheme of repair work ahead is completed, the works should then be almost equal 1o new. “I should like at this juncture to remark that, with the new work in I hand (I refer now to the new holder i for Castlocliff) and the amount of I money required for maintenance work, it is quite evident that the department will require all its profits again this year. Increased Revenue “From the annual report presented by the town clerk, it will be seen that the revenue for lhe year showed an increase over that for the previous period. The increase in certain sections is not as great as could be desired, but when the fact that any improvement in the revenue is dependent upon the expanse of the city is taken into account, the incrcn ■*' is as great as can be expected. Expenditure “With reference to expenditure. 1 feel that a short comment might b>. fitting. In some instances it will be noticed that the expenditure has varied somewhat from the estimates, maintenance costs being the principal factor. "Coal.--The rates on coal have hardened during the year, the increase being slightly higher on Um New Zealand than on the imported 1 commodity, “Maintenance of Works Plant. In this connection a very heavy programme of work was carried out during the year. This work has been mounting up for some timem, and last year it was decided that the plant could not continue further without the necessary attention. The retort settings now in commission have recently' been repaired, and unless anything unforeseen happens, should continue in work without further attention for five or six years. The third and last retort setting is at present undergoing repairs, and I am hoping tiiat this work will be completed within lhe next two months. The retort settings should then be almost equal to new.’’