The Dominion. TUESDAY, MARCH 19, 1912. HARBOUR FINANCE.

Dominion, Volume 5, Issue 1392, 19 March 1912, Page 4

The Dominion. TUESDAY, MARCH 19, 1912. HARBOUR FINANCE.

The voluminous figures given by the Chairman of the Harbour Board in his review of the year ended September 30 last give a good impression of the vigour and briskness of the port. The volume of trade and shipping is increasing, although there are fluctuations in detail, and | the year's working ended with a much better profit than was made in the preceding year—£l4,l76, as against £6216. Perhaps it was their satisfaction over this increase that led those members of the Board who spoko yesterday to avoid anything like criticism of the financial position of the Board. Yet we cannot help feeling that the position is not so' far above criticism as it might appear to be. A glance back over the past two or three years will make this clear. Towards the end of November, 1909, the then. Chairman, Mr. AVilfokd, gave out tho figures for the year 1908-9, and, while insisting that they disclosed a satisfactory stato of affairs, recommended the virtue of caution. Wo pointed out that the Board had been running on a series of very small surpluses, and that almost the last word of Mr. Ferguson on his retiring was a warning that tho finances of the Board should be made more secure.

In the following March the now Chairman had to announce that the Board's finances had reached such a point as to necessitate the imposition of rates so substantially higher as to produce £17,640 a year. In making hia announcement Mr. FnETMEit adopted a very serious tone, and ho hoped the, Board would in future guard against foolish exppnditnro such as it had sanctioned in the past. Unnecessary, cosily, and extravagant works," he Kiiid, "had been carried out, and a muiibiM' of them were very uuremunenitive." He complained also, and with great, justice , , of the neglect of the Board to face the position months earlier. l)n. Newman, at. that, mooting of the Board, declared that he had made out a list of works that had accounted for tho waste of nvtir JMOD.OOn; and we hoped at the tiros that tho

Board would order a special investigation of its iinane'js. At this time last year the iVatuiv of (ls> Chairman s annual statement was his reference to (he working of ll )L . higher tariff. He said that if the higher tolls had not be;;n imposed there would have been a deficit of about £ISOO instead of the actual surplus of £6000 odd. In our comment upon this admission we pointed out on March L>l! of last year that another check or shrinkage in the trade done would produce, a deficit despite tlu; increased taxation, and wo asked whether the: Board would in such a case adopt the dangerous remedy of another turn of the screw.

The higher charges were by everyone regarded as a temporary measure of financial policy; but tho Board has been unable to make any remissions yet. The'annual report presented yesterday emphasises the fact that the year under review had a full year's advantage of the ■ increased tariff. If that increased tariff had not been in operation the year would obviously have ended with a deficit of about £3000. "How," we asked a year ago, "does the Board propose toprocluce a sound position on the basis of a return to normal charges 1" The question is not merely valid to-day, but is more urgent than ever, since an increase in wages has turned to ashes a groundless .hope, entertained last November, that remissions might be made. The fact remains, of course, that the year's working showed a credit balance of £14,000 odd on profit and loss, but the fact also remains that the higher charges adopted a couple of years ago as a temporary measure have become a permanency. We cannot see that the position of the Board is in reality much better than it was when Mr. Fletcher issued his disturbing pronouncement of two years ago concerning the weakness of port finance. How does the Board propose to revert to the normal charges of two years ago?