OTHER PEOPLE’S IDEAS

Wairarapa Times-Age, 7 November 1940, Page 6

OTHER PEOPLE’S IDEAS

POWER & GAS SERVICES (To (he Editor.) Sir.—Your recent article concerning the Greytown Gas Work's, erected in 1911 and now to be closed down, leaving a debt of £7.000 is timely, and observations on the wisdom of allowing one undertaking financed with public money to cut the throat of other undertakings also financed with public money, prompt the following remarks: Masterton Borough has two representatives on the Power Board and these have no official connection with the Borough Council which controls the Borough Gas Works; these were erected in 1887, the capital outlay being £65,000, of which, £50.000 remains unpaid, while the council had to strike a special rate to return £2300 per annum to assist in meeting the expenses of the gas undertaking, which now has an average revenue of 6s lid per 1000. Where private enterprise was allowed to provide public facilities, such as gas works or tramways, it was usual to grant a franchise prohibiting competitive . services, so 1 ng as certain conditions, as to urges, etc., were observed, usually witn a right to take over the service at figures found by arbitration. Many local bodies when commencing operations, also protected themselves by such a franchise, but when the Wairarapa Power Board was constituted in 1921, only one local body (Martinborough Borough), had such protection and the three gas services at Greytown. Carterton and Masterton, were left to face competition without protection. Martinborough sold its service to the Power Board (which was otherwise unable to enter this borough), and whereas charges to its residents in 1923 were 12.80 d per unit, they now share in the average charge of 1.057 d made by the board, just one-twelfth of the former charge. This result was not achieved by growth in population, for in 1921 this stood at 952 and for 1938 was 960, but was rendered possible by the steady growth of electrical business in the Masterton area, which now finds fiftyfour per cent of the total Power Board revenue, and yet has to face a loss on its own undertaking for light and power.

Greytown, by reason of its small and scattered population, found it difficult to set aside reserves other than those provided by law. Carterton and Masterton are each in a better position, but the fact remains that the gas and electricity enterprises are carried on in direct opposition. Hamilton may be quoted .to show that this is unnecessary. There the gas works, which were taken over in 1910, make the same quantity of gas annually as Masterton. Gas Works, charging 8s 9d per 1000 feet, are in a sound condition, and when electricity became available, the borough (protected by franchise) elected to handle its own distribution and this account has also paid its way,, and in five years profits totalling £25,000 have been paid into the general account. Masterton has a very strong case for amalgamation of gas and electrical services.

It provides more than half of the Power Board revenue, yet Martinborough, with a population of less than 1000, has one representative, and Masterton with 9,200 has only two. A recent report indicates that the Powei’ Board is losing £5 per week by having the Head Office in Carterton instead •of Masterton, apart from the inconvenience of headquarters being separated from the main source of business, and it is also to be remembered that Hastings with GO miles of streets and 12,000 population carried out its street lighting for £7OO, where a similar service for Masterton, with about half the length of streets, cost £1,385.

The position with respect to gas works at Carterton and Masterton is unlikely to improve with time, and as these districts are the main sources of profitable revenue for the PowerBoard, some attempt to remedy the position should be made before it is too late. —We are, etc., H. P. HUGO, FRED C. DANIELL. Masterton, November 7.