The Wanganui Chronicle MONDAY, AUGUST 21, 1950. ELECTRICITY AND GAS

Wanganui Chronicle, 21 August 1950, Page 4

The Wanganui Chronicle MONDAY, AUGUST 21, 1950. ELECTRICITY AND GAS

"THE discontinuing of the Government’s subsidy on coal to enable coal gas to be retailed at below production cost has brought consumers of that commodity face to face with the problem of paying for that which they consume. There is no ground for complaint here for every consumer should expect to pay the cost of the things he consumes. To pay part of the cost by way of subsidy is to cover up part of that cost; and to do this is to lead to an unhealthy situation. The operation of withdrawing the subsidy may prove to be painful, but in the end it will be more likely to induce a healthier state of affairs to come into existence. The consumer of gas, however, when faced with a bill which increases his household outgoings to an unexpected degree finds small comfort in the position as a whole Ijeing made healthier. He is immediately concerned to deal with a situation which, although meriting his attention, failed to interest him so long a« his gas bill was on the low side. The obvious way to cure his present unsatisfactory position is to instal electricity. But when he moves to do this he finds that as he has alternative means of lighting and heating lie canno! be supplied with electric light and heat. The man who feels that he cannot afford to pay for gas at current rates and yet is denied the use of electricity feels justified in taking a jaundiced view of the outlook. Here he is an established householder denied electricity which can be obtained by the builder of a new home! Further, there is another side to the gas picture - . If the industry fails, being municipally owned, the loss will fall upon the ratepayers. The closing down of the municipal gas plants when it occurs will therefore throw upon many users of gas a heavy liquidation cost. Meanwhile, he has been contributing to the accumulation of large reserves by the power boards. The city, therefore, while carrying the prospective liquidation loss of the gas department has all along been carrying the burden of a higher rate for electricity than was required to meet all outgoings on city sales of electricity. Roughly speaking, the city consumers have contributed .75 per cent, of the Power Board’s accumulated financial reserves and yet these same city consumers will go on virtually subsidising rural consumers of electricity and paying for the losses on the gas when these occur. It’s a good game played slow! But the public likes it! When the “Chronicle” advocated the amalgamation of the gas and electricity services so that the transition from the one to the other, which is inevitable, could take place gradually by an evening out of the charges for both electricity and gas, the suggestion fell on deaf ears. Consumers were not interested, the City Council was not interested and the Power Board naturally was not going to rush to take over a concern the outlook for winch was certainly far removed from roses, roses all the way. One hight-minded City Councillor of the time observed that “we are not going to lose control of our gas department.” Nobody wanted to rob the City Council of it. Now the consumers have to do more vigorous thinking on this subject than they have as yet exercised. Their condition in some instances is very difficult, but difficulties are made to be overcome—or enduted. Up to now the consumers have elected to endure their ills because they were subsidy cloaked Now the cloak is off and grim reality stares them m the face. What will they do now? High Heaven helps those who strive to help themselves.