LOWER HUTT GASWORKS

Dominion, Volume 15, Issue 2, 27 September 1921, Page 6

LOWER HUTT GASWORKS

RATEPAYERS MAKE PROPOSAL TO PETONE ’ SUGGESTED NEW CONTRACT \ . At last night’s meeting of the Petone Borough Council a deputation was received from the Lower Hutt Ratepayers’ Protection Association, which had forwarded the following communication to the council; — “(1) Are the Mayor and the councillors of Petone prepared, on behalf of their borough, to enter into a contract to supply the Lower Hutt Borough with gas for the terms of. say, (a) five years, (b) ten years, (c) a contract with two years’ notice of termination on either side. All proposed periods of contract shall be on the basis ewarge of 10 per cent, over and above the ascertained manufactured proportional cost at the Petone gasworks. The said cost to he allocated and mnde on the basis ns proportional costs chargeable, namely, cost of ecal delivered in yard, cost of labour at gasworks and yards, cost of interest on loan relative to gas manufacturing plant and yards, and reticulation means only from Petone gasworks to Hutt Borough, nl'o proportional cost of repairs, depreciation, and renewals. "(2) Each council fo appoint from time to time two councillors and their respective town clerks as a committee of management to superintend and make adjqstments in connection with supply of gas to Lower Hutt only. The said com-, mittees to have access to books and documents in connection with and for making tho said adjustments. Adjustments to he made at the end of every three months from date of new agreement. —

"(3) If the Petone Borough Council is prepared to accept tiny of the aforementioned propositions, and they, with the Lower Hutt Borough, complete an agreement on the aforementioned basis it is tn be conditional that the present conthe Lower Hutt Council shall immediately be cancelled, and a new agreement as aforementioned, with any amending clauses that may be inserted by mutual consent .of each party thereto, shall take its place.

That the Borough of Petone will give our association an estimate ah to will to the cost of gas supplied to the Lower Hutt Borough for the term of the first three months, according to the aforementioned cost of 10 per cent, over cost of production.” Antagonism to - Hutt Council's Scheme.

Mr. 8. Clendou, the acting-chairman of the association, explained that the association was antagonistic to the erection of gasworks in Lower Hutt. ” It regretted that, negotiations with Petone had failecl. Tho proposal for the’rais/ ing of the loan had been put up on tho distinct understanding that works would not to erected unless there were no prospect of agreement with Petone. He considered that tho deputation were quite justified in approaching Petone for the purpose of "clearing the air. ’ The distrust and ill-feeling that existed between JTutt and Petone were deplorable nnd did not tend to create ail atmosphere of settlement. The deputation had attended with n. message of goodwill. “Give us a fair deal, a fair supply, a. reasonable price, will to settled,” he said. "You have the draft agreement before you, with the* price omitted, and I think you will put the price in in good spirit.” Mr. T. de C-. Bell (the secretary) said he wanted to see justice on/both sides, and they were putting the cards on t.ie table in order that an anucalge agrcO'! ment could be arrived at. ■Mr. Judd urged that it would not Ba advisable for the Hutt to establish a gasworks, and said that for the P lU ' pose of preventing what, he characterise! ns a "suicidal policy” the ratepayers had banded together. He trusted that the council would give the deputations request favourable consideration. Air. Bell was of opinion that with the advent of hydro-electricity the _ Hutt Council, if it persisted., in , erectln s. Aji own works, would lose 50 per cent. -tJ” its gas consumption, and he believed that Petone would suffer in a like manner. "Is it wise.” he asked, "to have two gasworks within a mile of each other competing for the supply ? Councillors: No. Councillors’ Opinions.

“We should send tho deputation aiyay satisfied that we will do everything to assist them as well as ourselves," stated Councillor Al. Anders-on. “"’e. enould regard it as a business proposition, and ; t we loss tower Hutt we lose a goodly ’portion of our output: AVe can make a profit at the same time, and we can see that you obtain .vour gas cheaper. (Hear, hear ) He failed to see why any obstacles should have been put in the wav of an. amicable settlement. At in* hist conference with the Hutt he had had everv reason to believe pm the matter would bo favourably considered, but he hud rend, with utter amazement n few days later that negotiations had terminated. Councillor W. Hey suggested, that Lower Hutt could be provided with holders of its own, and could then regulate its supply. ' . ... Regarding the recent conference with Lower Hutt, the chairman (Councillor C. P Brockelbank) said that the. majority of the Petone Council had approached the gas \question from a new angle, and had gone to Lower Hutt as a committee, to hear what they had to say and discuss the three proposals advanced by the Hutt. The Petone representatives had come away believing that they were to be allowed,,a fortnight in which to consider the proposals. The whole thing" he said, "could have been settled, but the Hutt did not want it. Petone were quite prepared to come to an agreement.” • . , "If you gentlemen, said \ Councillor J L Churchouse (addressing the deputation), “had acted ins-7915 as you are acting now, there would have been no gas dispute; the whole thing would have been settled long ago.” He considered' that, an agreement would to beneficial to Petone as well as to the Hutt ,i r i After considering the position, the following decisions were come to:— Clause 1: "That the council agrees to supply gas on the basis of 10 per cent, on ascertained cost." _ \ Clause 2: "No alteration. Clause 3 was agreed to in its entirety, and in Clause 4 ss. 6d. was substituted as the approximate cost. On the motion of the chairman, it was decided to insert, a clause to the effectthat the council desired a term of ten rears, with two years’ notice of termination of agreement at the end of the time.