IMPORTING BITUMEN

Sun (Auckland), Volume III, Issue 887, 3 February 1930, Page 10

IMPORTING BITUMEN

COMPETITION FACED BY GAS COMPANY ANNUAL MEETING HELD “The total receipts from the sale of gas, together ■with, the balances of the various accounts, amount to £ 463,613 and are less by £5,093 than those of last year. Against this drop in the income, however, it is pleasing to note that the working expenses, amounting to £351.691, show a reduction of £9.445,’' said the president, Sir George Elliot, in his address at the annual meeting of the Auckland Gas Company, Ltd., held today. Continuing, Sir George said the reduction in revenue was more than accounted for by the reduced price at which tar had been sold during the year: a course rendered necessary by the competition the company had to face from importers of bitumen. Once there was little or no importation of bitumen into New Zealand, tar being used exclusively for footpaths, yards, tennis courts, etc., and the company had then little difficulty in selling all the tar it made at satisfactory prices. Of late years, however, it had been found that macadam roads without a tar or bituminous covering would not stand for any length of time. It was decided, therefore, to manufacture a tar preparation known and sold as “Distar.” Distar was supplied hot in bulk within a radius of 25 miles of Auckland by means of insulated tanks mounted on lorries. This method did away with tar boilers on the road, lessened expenditure and expedited the work. Luring the year gas service pipes had been connected up with the premises of 1,333 additional consumers, bringing the total number up to 47,981. Isearly thirteen miles of new mains had been laid, making the total mileage 642, while 3,615 cookers have been installed, making a total number of 38,634 in use.

“In view of the somewhat depressed conditions prevailing since last we met in this room these results should be considered highly satisfactory,” said Sir George. SHORTAGE OF COAL For some time there had been considerable anxiety with regard to coal supplies. The mining trouble in New South Wales had deprived the company of its usual proportion of coal from the Maitland coalfield, with the result that it had to depend entirely on the West Coast mines in New Zealand. The recent earthquakes in the South Island cut off supplies entirely for six weeks. At the present time the stocks of coal were smaller than usual, but the position was improving, and, it there were no further interruptions, the company would gradually accumulate satisfactory reserves. Sir George made mention of the price reductions that had been made since the end of the war, although raw material and wages had not come down. Threepence was taken off the price in 3 922, sixpence in 1923, threepence in 1924, and sixpence in 1925. These reductions totalled Is 6d, and represented a sum of £90,000 per annum to the gas consumers of Auckland and suburbs. For the first time in the history of the Auckland Gas Company, the capital expenditure during the year had been more than offset by the amount written off for depreciation of machinery and plant. The total dividend suggested for the year amounted to £89,756, a sum of £444 more than it was last year. This increase was due to the allotment of a further 5,043 shares to the Employees’ Provident Association. QUESTION OF TAXES “Before concluding it appears advisable again to refer to the question of the non-taxation of Governmental •and local body trading concerns in the Dominion,” said Sir George. ‘‘The amount paid by this company for land and income-tax and local rates was £23,560 last year. This sum has, of course, to be paid by Auckland consumers of gas light and power. It does not seem just or equitable that consumers of electric light and power make no similar contribution to the revenue of the countrja” “The subject is of such a serious nature that no apology need be made for again referring to it. It is a certainty that if the law remains unaltered, and if Government and local authorities are encouraged by preferential taxation treatment to extend their industrial enterprises, private traders will either be taxed out of existence, or other ingenious methods of taxation must be instituted to raise the necessary annual revenue to carry on the affairs of the State. If the Government could realise the danger of the present position and make such alterations to the existing laws as would place all traders on an equal footing, a large addition to the public revenue would be secured, and a general reduction of taxation made possible.”