WANGANUI GASWORKS MEETS ITS OWN CHARGES

Wanganui Chronicle, 10 November 1950, Page 8

WANGANUI GASWORKS MEETS ITS OWN CHARGES

Chairman’s Outline Of The Undertaking One of the interesting matters raised in the Wanganui municipal election is the future of the city gasworks. Mr A. C. Seivewri-ght, Citizens’ Association candidate for the mayoralty, has suggested that the gas plant be taken over and merged with the Wanganui - Rangitikoi Electric Power Board. Reaction of the Labour Party to this suggestion has come from the present chairman of the Wanganui City Council’s Gas Committee, Cr. R. P. Andrews. “The proposed merger of gas and electric power undertakings in Wanganui, as suggested by Mr A. C. Seivewright, is not without merit,” said Mr Andrews, addressing electors at Gonville. “It is not my intention to decry the scheme just for the sake of being opposite. Ido feel, however, that the time is opportune to explain th.? position of the .gas department fully, in order that the citizens may have a clearer picture of a subject which is receiving a full measure o r publicity at the present time. “The department is a trading concern and. as such, makes an annual contribution to the city’s finances of £790, made up as follows: Rates £270, rent £l7O, and, to the general account for administration, £350. There are further smaller charges (such as for water) and, in addition, the department pays the works department for the restoration of all cuts made in the roads for service installations. MEETS ITS OWN CHARGES. “In all, the gas department pays to the general accoount close on £lOOO annually, and it is the only department which meets its own charges,” Mr Andrews said. “Although losses have been made since 1942, it is interesting to note that the general account has only been called on to assist the gas department to the extent of £24,766, whereas on the other hand no less a sum than £91,035 of profits has been transferred from the gas to the general account and a further £92,640 of profits used within the department for capital expenditure. The only other item which might be claimed as a charge against the department is the sum of £17,975 received from the Government by way of suosidy. That was paid because the department was compelled by Government policy to adopt an uneconomic method of handling its coal. “As far as the recent price increase is concerned, It was a matter for regret that the council was compelled to impose such a sharp increase, but, as the department was suddenly faced with an increase of £27,000 annually, due to the lifting of subsidies, plus increased wharf, rail, and sea charges (as well as wage increases), there was no alternative. “The aim of the department is to stand on its own feet without aid from the general account. The present indications are that this is being achieved. “To give a full appreciation of the value of the works, I would point out that the total amount expended on them amounts to £308,415. Loans still unpaid amount to £74,613, but this sum will be reduced to £50,000 (less sinking fund) In 1957. MORE THAN 7000 CONSUMERS. “There are over 7000 gas consumers and the quantity of gas sold has increased from 120 million cubic feet in 1938 to 185 million cubic feet last year. And the demand is still increasing. “The city is reticulated to the extent of 100 miles of mains, which means that practically all streets have gas laid on and as three miles of pipe are on order, defective pipes will be replaced and the service improved as soon as it comes to hand. “The works are the fifth largest in the Dominion and the new section

containing the retorts and the watergas plant the most modern in New Zealand.

“The water-gas plant is particularly valuable, for it can not only be utilised at short notice to cope with extraoordinary dmands for gas, but also in the event of an accumulation oi stocks of coke, this can be used for gas making. A case in point was the occasion of the recent waterfront hold-up, when coal was in short supply and the stocks of coke withdrawn from sale and used in the water-gas plant. It was solely because Wanganui had such a machine that gas was produced on that occasion.

“It has been the policy of the gas committee during the past three years to improve the efficiency of the works by the installation ol mechanical equipment and improved layout. This has been costly, but it is now bringing results, and can be best illustrated that in 1938 51 men were employed to manufacture and stll 120 million cubic feet of gas, whereas 53 men last year manufactured 185 million feet and, again, 600 tons less of coal were required last year for a record gas make. This was due to the setting of the modern retorts which were installed recently. AIM IS TO IMPROVE. “The aim of the department is to improve the service continually and during the past three years half of the 7100 meters in use have been replaced and cleaned. Complaints about poor gas service which two or three years ago were common, are now seldom heard. The department has followed a defined plan in remedying faulty mains and defc/ ive service pipes. The replacement with 4in. pipe of the old 3in. pipe on the Aramoho bridge improved the service to Wanganui East, and as pipe already on order comes to hand this work will be given further attention. “Dealing with service, I might state that if a small gas holder could be procured at a reasonable price and installed at Aramoho a great improvement is pressures would be effected there.

“In pursuance of its policy of efficiency, which is the only way to tackle the problem of rising costs, the gas committee recommended to the council that an overseas expert be invited to visit Wanganui and inspect the works and advise on the best method of remodelling the older part, which comprises three settings of retorts designed for the use of Newcastle coal. The first of these was installed in 1914 and the other two in 1922. Today they are quite out of date and far too costly to operate with coal at present-day charges. Whatever recommendations are made, full publicity will be given to them and, as far as I am concerned, no commitments entailing heavy expenditure will be entered into without the sanction of the ratepayers.

VALUE OF WORKS.

“One final word concerning the value of the gasworks to Wanganui, and that is its ability to supply a high grade of tar to the council for its road work—and this at a reduced rate. “The present committee were not happy at having to false the charge as they fully realised there was a danger of driving away custom. They were placed in the unpleasant position of having to put their own house in order and did not hesitate to do so. “Personally, I still have confidence in the works, particularly as I have attended gas conferences and have heard the problems of other undertakings, problems which we do not possess, and have talked to gasworks managers who have all complimented us on our works and have envied us the modern parts of our plant. I say to the citizens of Wanganui: “You have over £300,000 invested in the gasworks. If you can sell to the power board for anything approaching th' figure, all right. If not, it would be unwise to part with them.”