THE GAS QUESTION.

New Zealand Times, Volume XXXI, Issue 4818, 31 August 1876, Page 3

THE GAS QUESTION.

TO THE EDITOR OF THE HEW ZEALAND TIMES. Sir, —The recent discussion in the City Council on the subject ot the purchase of the present Gas Company’s plant, may give some interest to the subjoined extracts from the 36th report of the Registrar-General of England. After reference to the value of the rates collected in London, the report reads as follows: “Besides these rates cf a municipal character, the receipts of the thirteen gas companies for gas rates in the year 1870 were £2,015,974, while the receipts of the eight water companies for water . rates were £991,564, making the levy of rates by these companies £3,038,538 a year. The revenue of the gas and water companies from all sources was three and a half millions sterling; the expenditure two and one-sixth millions; the net profit £1,349,436. The capital of the companies at the latest returns was £18,291,130, on which the net profit of £1,349,436 would pay seven and four-tenths per cent. Now it is certain that London, with a complete and intelligent municipal organisation, could have borrowed money at the rate of three and a half or four per cent., and had any such organisation existed, the gas and waterworks on a combined plan might have been produced for less than eighteen millions sterling; but even at four per cent, the capital returned could have been raised at a cost of £731,645 a year, instead of £1,349,436, with which London is now oppressed. £617,793 would have been free to devote to other purposes, or a sum exceeding by £200,488 the whole of the rate levied by the Metropolitan Board of Works for the sewers, embankment, and other public works. “ Neither water nor gas companies paid such dividends at first as they do now, because the , consumption of their pro-, ducts was limited; but the time has arrived when not only water but gas in towns is recognised universally as a necessary of life, and both should consequently be supplied by the municipal authorities, wherever, in the opinion of the ratepayers, their "mayors and town councils can be trusted to manage the municipal business with as much integrity, intelligence, and zeal for the interests of their fellowtownsmen as the directors of gas and water companies display on behalf of the shareholders.

“ The' great water and gas companies now supply even a wider area than the London, within weekly tables; and it is evident that while i,the Lord Mayor in his small domain stood aloof, and the half-misled vestries wanted intelligence to perceive or to endeavor to supply the new wants of the age, the field was left open to capitalists, who acquired under Acta of Parliament the legal right to levy taxes, of which they can only be deprived by equitable purchase, and by such sacrifices as might be made with ultimate advantage to the inhabitants.”

There is an aspect of the present question about which lamnotolear. Ist. Has the Corporation of Wellington the power to purchase the gas works? 2nd. If so, has the Corporation power to sell gas to the inhabitants of the city? By the 325 section of the Municipal Corporations Act, 1867, power is given to negotiate for lighting, and there is a general power to levy special rates to pay for interest and principal on loans. But a special rate which must be universal is not a payment at per 1000 ft. of gas consumed. A special Act was necessary to enable the Corporation to erect waterworks, and charge a greater or less rate according to whether the water was used or not, and it appears to me that similar legislation is necessary before the Corporation can either buy gas works or sell gas. If it be contended that there is-a general power to erect works on loan, the interest must be paid by special and universal rate, not by sale of produce. This would hardly meet the views of the ratepayers. I may be in error; but I think the question should be considered—l am, &c,, A Citizen. Wellington, August 29.