ANNUAL GAS REPORT.

Greymouth Evening Star, Volume XXXI, 29 November 1901, Page 2

ANNUAL GAS REPORT.

At the Borough Council meeting last night, Mr Petrie, Chairman of the Gas Committee, gave the following report of last year's transactions :

At the conclusion of the Council's first year's experience as gas-owners, it is pleasing to be able to congratulate the ratepayers upon the excellent results attained, and to assure them that umder ordinary circumstances they are likely to get even better results in the future.

It will be remembered that when the poll for the purchase of the Company's plant was being taken, a good deal of opposition was shown to the proposal: firstly, on the score that the works would not pay; secondly, that the Company was asking too much for the plant; (and thirdly, that the plant was old and worn, and wi uld require an almost immediate expenditure of £4,000, which with stock purchased would roundly amount to £20,000. I think I can clearly show from actual experience that suca statements were erroneous, and that those who approved the purchase will now agree that the acquiring of the gasworks was exceedingly advantageous to the Borough, and will constitute a solid source of income, and aid materially in keeping down, and possibly reducing, rates, while, at the same time, and at no distant period, granting further concessions to tbe consumers in the shape of a reduction in price. During the year the consumption of gas was 8,755,000 feet, or 900,000 feet in excess of the previous year, and this too in face of the fact that the incandescent burners, causing a better light, but great saving in consumption had been largely used, and in face to of a large loss in consumption through the Richmond Quay fire. The total receipts were £3,657, being an increased income over the previous year of £240 6s 2d. The expenditure was as follows: — Working expenses ... £1,525 13 11 Ground rent and insurance 5114 4 Departmental 110 18 10

Total £1,688 7 1 Leaving a credit balonce of £1968 17s sd. Of this fcum £960 was paid for interest, and redemption of £24,0 worth of loan, £629 expended in stock, and the balance of about £363 carried forward. This result had been attained too after having increased the .workmen's wages from 7s 4d per day to 9s, and the manager by £SO. As a matter of fact the works after paying all expenses including interest at 4& per cent, and 1| pei cent sinking fund gave a profit of 7 per cent on the capital. The works were in excellent condition, and had fhe consumption remained as when the Borough took charge the outlay on plant would have been merely nominal. As to the future prospects he thought they had nothing to fear. It would not be advisable, owing to the large outlay required to meet increased and new business, to make any reduction during the present year; but there was every prospect of a substantial reduction being made next year without reducing the income. Last year the increase was 900,000 feet, but there was ample reason for believing that the present year would see a very much larger increase. There had just been started, or about to be started, five large gas engines whose annual consumption would be over 2,500,000 feet per annum. The Borough pumping engines when erected would consume a million feet per annum, while the increase in ordinary consumption for lighting and cooking was eetimated to be another million. For the current year provision would require to be made for 3,500,000 feet more than during the period just closed, with a certainty of an additional million feet the following year for the Borough pumping plant. This would bring the consumption from 7,700,00 d feet amount when Council took over the works to 12,250,000. To meet this increase extra appliance were necessary. Two new benches of retort would cost £SOO, while a gasometer capable of holding 50,000 would cost £2,000. To meet this charge an extra loan of £1,500 had been authorised by the ratepayers some six months ago. The credit balance of £362 was also available. This would leave a deficiency of £638 which would easily be met out of revenue

The Borough lias now in hand a good and new stock of gas fittings, stoves, etc, which are commanding a ready sale, the Council applying the time payment where required. There is not a great deal of direct profit in this sale but a large indirect advantage has, already, and is likely to accrue in the future in the shape of increased consumption. In substituting oxide of iron as a purifier instead of lime an annual saving of £IOO will be effected, while the most disagreeable and hardest task of the employees has to a great extent been done away with, tie iron requiring removal but onco a fortnight as against one over every 48 hours with lime. Mr Kennedy finds the fitter of great advantage to the work, being always on hand to undertake new extensions without unnecessary delays. The manager is ever on the alert to secure new business and to satisfy present customers and I desire to fully recognise his valuable services. The working staff too, all perform their work well, working harmoniously and ever studying the interests of the Council, ,

The Secretary who has had a great deal of extra work put upon him has performed his task in a most creditable manner and although often, though pressuro of work at the offices, early and late, had never been found wanting. His salary is quite inadequate for the work performed and I strongly recommend an increase,

In conclusion I may state that with prudence and care I see no reason for altering the opinicn I previously expressed that no portion of the special rates levied as a security will even have to be collected, but on the contrary we are fully warranted in believing that when the water supply is in the income from gas and water wiil be sufficient to not only meet all special engagements, but will enable the ordinary rates now collected to be materially reduced) and th's too, after granting a substantial concession to gas consumers. He concluded by moving that the following report of the Gas Committee be received:

"We recommend that the fit'er be paid 10s per day, "the work he performs more than pays for itself, and he only receive 9a at present.

" We recommend that a bicycle be purchased for the use of the Manager of Gas Works and fitter,

" The following applications for extensions of gas mains, are recommended to be carried out:—(a) Marsden road as far as M'Queen's ; (b) Leonard Street to Trotting Club ground. In the latter case JEB per per annum is guaranteed for 7 years, and assistance in filling the pipe trenches.

" With regard to Mr Kae's application for a rebate we are of opinion that he be allowed half the amount of loss, viz., 17s 6d.

" The letter from the Bailway Department anent an all roundreduction of 10% on gas consumed by the Department, was held over penning a likely settlement of the matter."

In moving its adoption Mr Petrie explained that the committee did not want to pay their fi iter less than the current rate. That it would be a great saving in time to the Council to prcure a bicycle. That in regard to the extension of the mains to Mr M Queen's it would provide the town lamp there required and would according to Mr Kennedy give an annual profit of £lO. The first cost was £4O and the extension will form part of the permanent mains. In regard to Trotting Club application. The Club gave a seven yearn' guanantee of £8 per annum, their caretaker would assist in making and covering trenches. The pipes laid down would replace a section that was too small and worn out, and other citizens on the line of route hadaßked to be connected. The cost would be £SO, and the income at first £ls.

Mr M'Lean thought the Council should extend the gas mains to Preston road where there were quite a number of residents. ■

Mr Petrie said Mr Kennedy was now making enquiries, and if a number sufficient to pay would take gaa the work would be gone on with. Mr Joyce thought the Council would lose by such extensions. Mr Thomas favored extensions where a reasonable chance of an income was seen. He complimented Mr Petrie upon his very satisfactory statement. He was quite satisfied that the iwo proposed extensions under discussion would pay. Mr Sheedy supported the extensions. He thought Mr Petrie deserved much credit for ris explicit report which oarried conviction with it. Ic proved what an exceedingly good bargain the Borough had made. Future expenditure was necessary to meet new and profitable business. He agreed with the chairman's recommendation of an increase to Mr Warnes.

The report was then adopted and Mr Warnes's salary fixed at £204 per annum, Mr M'Lean seconding Mr Petrie's pro* posal.