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GAS WORKS REVENUE UP, BUT EXPENDITURE CONTINOES TO SOAR

Though the business of the Gas Department continued to expand rapidly, both in sales of gas and residuals, costs had also risen steeply, with the result that the debit Balance had increased steadily all the year, in spite of improved efficiency of manufacture, stated tiie engineer ami manager Mr. Atkinson). Total revenue at £102,318, reached six figures for the first time, but expenditure amounted to £115,456, a difference of £13,138.

“As the receipts and expenditure statements do not show a true financial position, there are certain aspects of it which call for comment," Mr. Atkinson stated.

Revenue ,is slightly lower than expected as sales of gas did not readh the estimate. If coke on hand at the end of March had been distributed by orders already placed, the estimate of £16,000 would have easily been reached. As it is, the 274 tons in stock will not reflect until this year. HIGHER COAL COSTS. “The costs of manufacture have risen steeply. The coal continues to deteriorate in quality ami more coal had to be railed instead of shipped through the port, so that £7OOO more than the estimate was absorbed by this one item. Wages on manufacture were also £lO6O more than estimated,” the report added. “Owing to the non-arrival of the detarrer, the purifying plant was saturated with tar fog ana it became necessary to renew all lour boxes with oxide, absorbing £6OO more than estimated. “After many delays, the West Gas Improvement Coy. completed the erection of the unit of six vertical retorts by Easter, thus finalising at a cost of £37,400 a project commenced in 1944. This plant has more than justified all claims made for it—it handles New Zealand coals with ease, makes approximately 19,000 cu. ft. of gas per ton of coal and leaves 61 cwt. of coke for sale. “With this additional plant, it was possible ot use less coke tor the watergas plant, thus making available lor the domestic market an extra 797 tons of coke, of which 523 tons more than last year was actually sold. A margin of 274 tons was still available for those who built up a reserve before the winter. “On the gas side, it is interesting to note that we manufactured 400,0ujlt. less gas for the year, but sold 3 1-3 million feet more due to reduction ot leakages on the district,” the report stated. The following details of receipts and expenditure were supplied by the citytreasurer (Mr. Best): — RECEIPTS. , £ Sale of gas - - 63,977 Sale of coke - 14,851 Sale of tar 9,. Sale of cookers and fittings 13,35. Other receipts - 378 Total £102,318 EXPENDITURE. £ _ Manufacture 71,254 Distribution 9,659 Cookers and fittings _ 15,486 Management - 5,994 Other Expenditure 1,359 Loan charges 8,751 Renewals, plant, meters mains, etc 1,607 New plant, meters and mains _ 980 New, building 366 Total £115,456 “The above summary shows that expenditure exceeded the receipts by £13,138,” Mr. Best stated. “To this must be added the debit balance of £5472 brought forward from the previous year, making a total debit balance of £18,610 at March 31. Late in the financial year a subsidy of £2320 in respect of increased wages costs was approved by the Government, but as payment was not made until April it was received too late for inclusion in the accounts.” This year, provision must be made in the general account, estimates for the transfer of £6213 to the Gas Works account to meet the cash deficiency and to comply with the provisions of the Local Bodies Finance Act, 1921-22, Mr. Best added.

Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/WC19490608.2.66.7

Bibliographic details

Wanganui Chronicle, 8 June 1949, Page 6

Word Count
598

GAS WORKS REVENUE UP, BUT EXPENDITURE CONTINOES TO SOAR Wanganui Chronicle, 8 June 1949, Page 6

GAS WORKS REVENUE UP, BUT EXPENDITURE CONTINOES TO SOAR Wanganui Chronicle, 8 June 1949, Page 6

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