MASTERTON GASWORKS.

Wairarapa Age, Volume XXIX, Issue 8379, 13 March 1907, Page 5

MASTERTON GASWORKS.

DISCUSSION AT THE BOROUGH COUNCIL meet!ng.

URGENT WORKS REQUIRED,

PROBABILITY OF A LOAN BEING RAISED.

A report was read at a special meeting of the Masterton Borough Council, last evening, from the Manager of the Gasworks on important matters connected with the Gasworks.

The report stated that the sum of £I,OOO on the Loan Account had been allotted to the Gasworks. Of that amount £442 7s 5d had been expended in various works, chiefly extensions of the mains. There was thus left to the credit of the Gas Loan Account the sum of £557 12s 7d, but liabilities amounting to £1,099 18s 9d had to be met. To complete the liabilities', therefore, the sum of £542 6s 2d was required. Included in the above-mentioned expenditure might be mentioned the following proposed extensions of the gas mains:—Renall Street, s from Chapel Street to Pownall Street, 40 chains; Hogg's Crescent, from Worksop Road to Dixon Street, 25 chains;, Dixon Street, from Worksop Road to Princess Street, 27£ chains; Bannister Street, from the Gasworks to Colombo Road, 20 chains; Cole Street, from the end of the present main to Pownall Street, 25 chains; Worksop Road, from Dixon Street to Queen Street, 7 chains. In addition to the foregoing the sum of £2OO would have to be found for the three-inch main extension to the new Hosgital. A long discussion took place on the question of providing funds for carrying out the works mentioned in the report. The Town Clerk said that the money would either have to be taken out of revenue or raised by loan. Cr Feist stated that unless the Council took a poll for the loan they would have to raise the money required by overdraft. The Ga3 Manager considered that the Council should not touch- the Revenue Account for the money required. That account has already been considerably loaded this year. The manager considered that it would befa bad policy to lay gas mains for future use and charge them to the present gas consumers and present ratepayers.

Cr Morris favoured taking the money required out of revenue, and carrying out the most urgent works at once. * He did not believe in raising another loan.

Cr Eton said it was all very well speaking of taking the money out of revenue, but that could not be done v/hen the revenue was already being' taxed for other.'purposes. Cr McEwen advised, the Council not to go to the ratepayers for a loan. He favoured working on an overdraft as he considered* the ratepayers were "full" of loans. Cr Feist agreed with the suggestion to create a special overdraft. Cr Ewington saw no use in raising £SOO at the bank when another like amount might be wanted as soon as the former was expended. It would, in his opinion, be a wrong policy to work on .an overdraft unless the Coun • cil knew the limit of the money they required. He considered that it had been proved that the necessary work could not be done out of the Revenue Account, so to get over the difficulty he believed in facing the ratepayers with a request to sanction another loan. Cr Temple reminded the Council that they had adopted a policy some weeks ago to try and do all new works with loan money. Now some of the Councillors wanted to do the work out of revenue, contrary to a former resolution. If the Council took up a loan for any amount* it would not be a burden to the ratepayers, as the Gasworks would pay for the loan. The town was progressing, and the Council must keep pace and extend the gas business. He would like the Gas Manager to make a report dn all the streets in the borough that required gas, and the probable revenue to be derived therefrom. The Council would then see how much money was required, and they could then ask the ratepayers to sanction a loan. He firmiv believed that the ratepayers wo'. l i.i sanction a loan. Cr Hoar said that he had never heard since he had been in the Council that money for gas extension purposes should not be taken out of revenue. Several streets required t gas, notably the end of Wrigley Street and Villa Street, and it was absolutely wrong to ask the ratepayers for a loan for new stieets, when residents in old streets had been waiting for the gas for years. He was in favour of taking any money required for new extensions out of revenue.

Cr Pauling supported Cr Temple's suggestion. The Council, he considered, should go for a loan, as the business was increasing. The trouble all along had been that the Council was "sailing too close of the wind." , Cr McEwen said' he did not mind asking the ratepayers to sanction a loan, but he thought it would be a waste of money doing so. Cr Elliott thought it would he better business to raise the loan and execute all necessary works rather than do the work by piecemeal. Any gas company in a- similar position to the Council at present would increase their capital by issuing new shares. Cr Eton considered that the Council was "too sudden" with loans. They had not spent the last loan before they wanted another. He was prepared to arrange with the bank for a small overdraft to carry out the works most necessary. Cr Temple moved that the Gas Manager be instructed to report on all streets in the borough requiring gas, and the probable revenueo be derived thertifrom. He asked the Manager how soon he could prepare the report. Mr 'Blackman asked whether the report was to be simply on distribution of gas or in addition on any probable new plant required within the next few years. He went on to say that if the present increase in the output of gas continued, the present carbonising plant would not be of any use in about IS months' time. The Council would have to look forward to enlarging the carbonising plant. The sum of £SOO was a mere bagatelle to what they would have to spend in the future.

Cr Temple suggested that the Engineer might divide his report under three headings, viz., (1) mains, (2) plant, and (3) anything that he considered required attending to. The speaker went on to say that it was with great confidence that he would put a loan before the ratepayers, as the works themselves would pay "all interest. Gasworks loans had for the last few years been looked upon as "gilt edged" securities in New Zealand. Ha was sure the ratepayers would sanction the loan.

The Gas Manager said he would have the report prepared in about a fortnight.

Cr Ewington seconded the motion, which was carried.

Crs Pauling, McEwen, Ewington, and Temple were appointed a committee to confer with the Manager in the matter.