• " LIGHTENING OUR DARKNESS "—AND OUR TAXES
[To the Editor of the SPECTATOR.] SIR,—In the letter you published from Mr. David Brownlie on the above subject in your issue of February 23rd, generous reference was made to Nuneaton in regard to the produc- tion of cheap gas. On this account I venture to address you.
The cost to Gas Authorities of producing gas to-day need not be more than about one penny per therm. Town gas is being actually produced to-day round about such figure. Large consumers throughout the country are paying about fivepence, or at least threepence per therm (60 per cent.) too much to the disadvantage of trade generally, and even to the gas undertaking itself. Gas at twopence per therm on a heat basis is equal to coal at £2 per ton, but the equivalent gas heat for some purposes will do the work that it takes seven tons of coal to do.
Coal is the main fuel of the world, and the chief source of all heat—in this sense it is raw material—therefore town gas, which is acknowledged to be the best form of coal, must be the ideal fuel for all purposes, giving much greater service and costing less for such service than coal itself. This possible cheapening of town gas is due to two main causes, the Gas Regulation Act of 1920, in which all qualities of gas are recog- nized as of equal heating value, and the joint production of gas and oil in the gasification of coal. It is only necessary for gas to be sold as fuel at fuel prices for the coal industry together with all trades (for what trade does not employ fuel ?) to improve immensely. Even the best salesmanship cannot avail for long if the selling price of the commodity is not right.
The gas industry generally has done yeoman public service, but to continue to warrant its Parliamentary monopoly it must adopt only the best methods in production and distribu- tion ; also it must continue to educate its consumers (even more whole-heartedly than in the past) and supply them with the best appliances only ; otherwise its franchise becomes morally forfeited at once, and the legal forfeit follows. There is no necessity to meander into the realms of polities with industrial questions. So vast, however, is the effect of cheapening fuel as herein outlined that by its general adoption throughout the country something like £90,000,000 sterling per annum would be lifted from the present costs of manufac- tures, allowing necessary taxation to fall much less heavily on industry.
Ignorance of, or indifference to, the best methods to employ in the production of an important raw material such as gas cannot be tolerated to-day by any body of men engaged seriously in businesses which have to provide a 25 per cent. imperial tax on profits and in addition to meet local taxation.
It is a question whether it is wise for any government with present conditions of trade to tax any raw material such at coal or gas. Whether it be wise or not, an effective and not unpleasant way for Parliament to expedite the production of cheap gas on modern lines in all our cities and towns would be to forgo income tax on the profits of such gas undertakings as sold gas and offer it for sale to its industrial users in large quantities at twopence per therm, say within the next two
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