PETONE GAS WORKS

Dominion, Volume 13, Issue 52, 25 November 1919, Page 7

PETONE GAS WORKS

KEPOKT OF EXPERT. At last night's meeting of tho Lower llutt Borough Council it was decided, on tho recommendation •of tho Mayor (Mr. E. P. Rishworth) to publish tho report of the expert (Mr. M. J. Kennedy) who was called by the 13oar<j of Trade to inquire into tho working of tho Petone Gas Works.

Tho report stated that a careful inspection of tho plant and investigation of the methods in vogue was made. A matter of importauco was the "unaccounted for gas," and, unfortunately for Pctone, that stood at a high figure. Tho make of gas for the three years ending March 31, 191'J, ' was 134,207,500 cubic feet, the quantity supplied to Lower Hutt 47.725,000 cubic feet, leaving for Petono 8(1,482,500 cubic foet. For that period tho "unaccounted for gas" was 12,284,000 cubic feet, or nearly 15 per cent. After allowing for 6 per oent. loss, tliero was a further 0 por cent. According to a statement supplied by tho town clerk of Pctone tho cost of manufacturing gas for the years 1918 and 1919 was 4s. 4(1. per 1000 cubic feet, and accepting this as' the averago cost for tho threo years, and allowing tho 6 per cent., tho loss to Potono was ■£1(!G8. or _ more than .£lO per week. Tho receipts for sales • of coko and tar were low, due to the fact that the Petone council considered the rntopayers ware entitled to tho benefit of cheap fuel. Tho Lowei Hutt also participated, and thus saved about .£250 per annum. The Lower Hutt Council had no asset.in the Po tone works, but had an agreement which which had four years to run. Ac-' cording to the Town Clerk's statement the loss on the Lower Hutt supply for the present year was £1189, so that tho loss to Potono for tho four years (if the cost of manufacture were not reduced! would bo i£475(!, plus concession of coke and tar JJIOOO, making a total of .C575G.

The roport recommended giving greater pressure to tho Lower Hult. The export could not understand Petone's attitude in this mattor, as increased pressure meant increased consumption. Perhans tlioy were not anxious to increase roles on account of what they considered tho low. charge, but it was ft mistaken nolic.v, because increased sales would menu ere,iter revenue. A table showing in detail tho cost of the manufacture of pas a 9 6tated by Mr. Gardner, Town Clork of Pctone, and Mr. Ward. Audit Inspector, showed a marked differenc?, which was accounted for by Mr, Gardner accenting the year to February 28, while Mr. Ward made the end of tho financial year March 31. Mr. Gardner showed tho loss per 1000 cubic feet to be 7.88(1. in 1918 and 8.77 d. in 1919, while Mr. Ward's figures wero o.s'd. and 4.G2d. for tho same ycvii's. Tho IWn Clerk showed a loss for 1918-19 of .61179. and tho audit inspector (after deducting profit for 1917) .£SBB, a difference of and with deducting tho nrofit for 1917, X 773, a. difference of JC-1-OC. Tim report went on to atalfo that if Petone declo'ed to discontinue to supply Lower Hutt on the termination of the agwemMit. gas could not be manufaehned at Lower Hutt as cheaply as it could be supplied by Pctone. or even as cheaply as Petono might be willing t-:> supnly it for another term. Again, tho effect of such a course, on Petone was ovident from tho fact Hint Hutt used 40 per cent, of tho amount manufactured, and Petono was free from cost-of repairs, maintenance, and depreciation on nnviis, services, and meters, and also administration, interest, and sinking fund charges, and had debts. They lifld als:> tho advantage of supplying ibis largo quantity through one meter. The less of Rich n consumer was a serious consideration. Tho interest and many oilier charges' would not be reduced and depreciation would continue. Labour charges would not lie much less, nor would maintenance of retorts and furnaces show a great decrcnse. The chief item to show a reduction would lie coai, and a small amount on 1 pin' llcnt'on.