PAEROA GASWORKS.

Hauraki Plains Gazette, Volume XXXV, Issue 4766, 20 October 1924, Page 2

PAEROA GASWORKS.

OFFER CONSIDERED BY COUNCIL. PROPOSAL FOR RATEPAYERS. In connection with the decision of the Ohinemuri Light and Power Co., Ltd., to go into liquidation and either sell the Paeroa gasworks or close down altogether, the attention of the Borough Council has been occupied for some time past. At the meeting of the Council on Thursday evening the following report of the special sub-committee appointed to go into the matter was read: “After full investigation and con•sideration your committee recommends that the Council offer, subject to the approval of the ratepayers at a poll, to purchase the assets of the Ohinemuri Light and Power Co., Ltd., for the sum of £3500, plus book debts aiid stock at valuation. “If the purchase should be finally effected we are of opinion that the works should be self-supporting. That is to say, the consumer should pay for gas whatever price is necessary to cover cost of manufacture and interest and sinking fund. It is estimated that at the price mentioned it would be possible to do this if the price of gas were increased 20’ per cent. “There are at present 230 consumers of gas and 240 consumers of electric light. Of the 230 gas consumers 147 use the gas for lighting purposes, and in view of these figures, and the fact that the property of the consumes!’ of gas is pledged as security for the Electric Power Board's loan, and the undoubted value of gas for cooking and other purposes, we think it desirable that the ratepayers should have an opportunity of voting on the proposal provided a satisfactory price can be arrived at between the liquidators and the Council.” Cr. Flatt said that there was little in the report to commend the project to the ratepayers. The Mayor said that the committee did not recommend the ratepayers to take it up and stand any loss from the rates. There was no doubt that having the gas in the borough was a convenience, but at the present time the plant was a losing proposition. The company had offered the plant to the Council for £4OOO, but the committee did not recommend that the Council should take it over at that price. Cr. Flatt said that if the ratepayers authorised the purchase they should be prepared to see the business through. He did not altogether favour the gas being taken away from some of the ratepayers without some provision being made. Cr. Brenan thought that it should be understood that there would be nc increased cost to the general ratepayers, but any increased cost in the

production of gas would have to be borne by the consumers. Cr. Vuglar said that loss through competition with the Power Board had to be considered. He understood that a neighbouring borough council had been forced to reduce its charges for gas owing to competition of the Power Board. Cr. Flatt assured the meeting that the Power Board was not in any way antagonistic to gas consumers. He thought that it would be some years before electric cooking became general. The report was received, and a special meeting to further consider the proposal is to be held on Thursday, October 23. .