GAS DISPUTE

Dominion, Volume 12, Issue 283, 26 August 1919, Page 6

GAS DISPUTE

LOWER HUTT AND PETONE BOROUGH COUNCILS

QUESTION STILL UNSETTLED

J'or some time past considerable corrwpomtencu lias ueen passing between the I'etono and Lower Hutt Borough Councils concerning the gas dispute, and at the meeting of the Lower Hutt Borough Council' last evening the matter win; again brought up. The Mayor itishworth) outlined the position at some length, and 6aid it was u remarkable thing that the Pctone Cmmoil a'tfused to supply details of the increased cost of gas manufacture. During the war period various other municipal gasworks throughout tho Dominion had continued to show a profit, despite adverse conditions and increased chaises. Assuming thr, was correct, and he had Jigures to provft it, ho failed to see why the Lower Hutt Council should be called upon to pay the extra cost. Ho moved the following motion :—"That in consideration of the Petone Borough Council extending the term of tho present gas agreement for a period of two years, and supplying gas at such pressure as tho Lower Hutt Borough Council shaJl from time to time require, tho Lower Hutt' Council will pay to the Petone Council one half of any excess cost paid 'by the Petone Borough Council for coal used in the manufacture of gas supplied to the Lower Hutt Borough Council over and above 255. per. ton, delivered at the gasworks, up to, but not exceeding, .£SO per calendar month." This was seconded by Councillor Hobhs, and carried.

The Mayor further moved: "That this council is of opinion that a satisfactory solution of the question would be a joint control of the Petone Gasworks by representatives of the Lower Hutt and Petone Councils, and that a report be obtained by both councils from Mr. Dougall (after an investigation by him into' the pos'tion of both boroughs) as regards the gas supply and tho terms upon which the Lower Hutt Borough should acquire an equal share in the Petone gas undertaking. That such report, 'although not binding on either council, be accepted as a basis of negotiation, and that either council ma> 'be represented at such investigation by at least one expert. This was aCso seconded and carried.

The following letter was received from the Town Cleric of the Petone Borough Council regarding the gas supply:— "When the matter of the lighting regulations was before my council at its special meeting on (Thursday last, the question of the negotiations with your council' was referred to, and as the/'position of tho gas supply is becoming most critical ,in the matter of coat of maintaining same, and the loss sustained by my council is becoming very considerable, my council feels that there should be some date fixed for any increases which your council is prepared to pay to take effect from, and under the circumstances it would like your council to consider the following questions at its next meeting, and let us have a reply by, say, August 27 instant, viz.:—(l) Does the Lower Hutt Council approve of the figures submitted as the cost of manufacture of gas at the Petono works? (2) If not, will it appoint an independent accountant to investigate the cost of manufacturing gas? (31 Will it agree to pay the extra cost, if any, fixed by such accountant as from September 1, 1919?—1n this connection I might point out that we have put before vour council all information possiblo relating to tho manufacture of gas, and feel sure that your council recognises the seriousness of the position in which Petone is placed. The agreement to pay tho increased cost could bo a tentative ono, that is to say, your council could agree to pay tho same pending the nego* tions being completed. My council trusts that your council will view this matter in the most favourable light."

Tho Mayor moved: (1) "That this council, whilst not challenging the correctness of tho figures submitted as to 'cost of manufacture of ,gas at the Petone works, having so far nad no opportunity of investigating tte nocounfcs. does not admit that several of tho items included in tho statement of costs, such as' capital and sinking fund, and management charges.' etc., are legitimate charges agninst tho cost of manufacture of gas supplied to Lower Hutt. (2) That this council is of tho opinion that Petone Borough Council (being the appellants in the matter) should furnish a report by a capable and independent aocountant (approved by tho councils) upon the whole of the Petone gas undertaking, taking into consideration any bearing which the working of tho whole undertaking has upon tne supply and co6t of gas to the Lowor Hutt. (3) Answered by No. 8" Councillor Meldrum seconded tho motion. which was carried.