NO SUBSIDY FOR THE MARTON GASWORKS

Wanganui Chronicle, Volume 88, Issue 203, 25 August 1944, Page 2

NO SUBSIDY FOR THE MARTON GASWORKS

“THE MINISTER REGRETS . . .” COUNCILLORS SURPRISED (0.C.) Marton. Aug. 24. Th-? Minister of Stabilisation, Mr. Sullivan, has advised the Marton Borough Council that he regrets he is unable to recommend a suosidy for the Marton gasworks. Councillors expressed surprise at the attitude of the Minister, v.hicii was disclosed in a letter to Mr. E. B. Gordon, M.P., for Rangitikei, who had been requested to approach lum and ask for a subsidy: “Mr. Sullivan has advised that the matter had been referred to the Price Tribunal and to the Stabilisation Commission," Mr. Gordon wrote. “The Commission authorised its chief investigating accountant, Mr. L. C. Nisbet, Io visit Marton and examine the position of the gas department. Ths exam’nation was duly completed and Mr. Nisbet reported back to the Commission. The report disclosed that, the council was repaying capital liabilities ir, respect of the Gtus Department. that the value of coal stocks on hand had increased and that there was every indicaton of an ncreased output of gas for 1944, with a consequent likely improvement in the gross revenue position. “It was also disclosed that trading losses were due, in a large measure, to abnormal expenditure on renewalsand also to increased freights on coal. Prior to the war. coal was obtained through Wanganui, the railage and wharfage Wanganui-Marton being Ils 3d per ton. Coal is now unloaded at Wellington and the cost of wharfage and railage Well-ington-Marton is 19s id per ton, an increase of 7s lOd per ton.

“In view of the above facts the Minister regretted to advise that he was unable to recommend that assistance by way of a susidy should be granted. Should, however, the future operations of the council’s Gas Department show any considerable deterioration on the position disclosed he wbuld be happy to give the matter further consideration on its merits.

“With reference to improving the freight arrangements, he iiad been advised that the Shipping Controllei does .'iot deem it practicable for present arrangements to be altered under existing circumstances.” The Mayor, Mr. F. Purnell, stated that the Wanganui gasworks had been granted a subsidy of £3OOO, and several other gasworks had also been granted subsidies.

Mr. C. C. McDonald (town clerk) drew attention to the freight charges, which he considered was not a fair statement, as because of additional charges at Castlecliff, the actual freight charges on coal were cheaper from Wellington than from Wanganui. That was the reason why the council was obtaining coal from Wellington. The council decided to refer the question Io the Finance Committee for further consideration, with a view to forwarding recommendations to the Minister of Stabilisation.