FOXTON WHARF

Dominion, Volume 7, Issue 2201, 14 July 1914, Page 6

FOXTON WHARF

, CONFLICTING CLAIMS HARBOUR BOARD AND RAILWAY • DE' jARTMENT, STRONG PROTEST TO MINISTERS For a long time past the people of the Foxton Harbour district have had a grievance against tho Railway Department arising out of the fact that the Department holds the . Foxton Wharf and collects the bulk of the harbour revenue. The Department is willing to sell the wharf, -but claims tlmi it is entitled; to base tho prica -apon the capitalised earnings of the wharf. A deputation from tho harbour district which interviewed the Right Hon. W. F. Massey (Prime Minister), the Hon. W. H. Herries (Minister of Railways), and the, Hon. F. M. B. Fisher (Minister of Marine) yesterday, maintained that the Foxton Harbour Board wa6 being treated unfairly by tlie Railways Department. . Mr. J. Robertson, M.P., who introduced the deputation, said that it represented .the Foxton Harbour Board,' tho Palmerston North, Levin, and Foxton. Borough Councils, and the North and 'Levin Chambers of Commerce. This matter of the wharf had created a great deal of feeling locally apart from all politics and-parties. The people felt that it was a great in jus-, tics that their Harbour Board should not havo'control of their own wharf and the revenue therefrom. ' \ Foxton's Disabilities. Mr. P. J. Hennessey (chairman of the Foxton Harbour Board) raised the question of an arrangement agreed to by the Hon. J. A'Millar, -when he was Minis-' tor of Railways, to sell the Foxton AYh?.rf to the Harbour Board for £20,000. Mr.'Hennessey said that on previous occasions-when he had mentioned this arrangement ho had been asked for proof. He now produced a copy of the Bill covering the, arrangement, which was drafted, but not gone on with,'in 1911, and also a letter from Mr. Millar .saying that he' .supported the Bill. The board now desired to purchase ; the'.'wharf for;. £20,000, and to issue debentures against the purchase money. Mr. Massey: You want the Railways Department to accept £20j000 for the wharf? ■ i/. . , Mr. .Hennessey • That is so. ' Mr - Massoy: Is it-'not a fact that tho Railways Department offered you the wharf at an amount based on its net earnings? ' . • - Mr. Hennessey: We as a harbour board claim that, the Railways Department, is not entitled to tho net. earnm R s - If we were allowed to enjoy the privilegss we are entitled to under tho Act we would -not give anything at all for the present wharf. It is simply because the Department-blocks' us that wc are forced to come here on our knees to the Government and make ' this offer.-. " ' ,-Massey;:. There are .' several wharves in the same position?, . Mr.- Hennessey : There are several other wharves, but they have endowments or other revenue to- help their finance. Mr. Herries, mentioned Nelson and Port Chalmers. , Mr. Hennessey: They all. have valuable endowments of one kind or another. ■^ r - J1 Hc ™ 3 ' Tllat has nothing.to do witji the Railways Department. Mr. Nash said that the Bill and letter produced showed that Mr. Millar .was prepared to accept £20,000.' He suggested that the' Government should accept payment of this - amount with interest, say, at four per cent, and onebalf Mr cent, sinking fund. Taking the last fourteen years—and the "Depart-' rnent had .held the wharf for .longer a revenue had averaged £1000 a year, so that, tho Department had inado more than £14,000 out of tho wharf ; : Mr. -Massey said that as far as he Multt see the matter was one in which he was not concerned, except as Prime It was a' matter between the i'oxtoiv Harbour Board and tho RailDepartment, and tliebetween tliem seemed to be that between £20,000 and. £28,000. ■ Mr. Herries: Tliat wa's tTi© valuaiion two yars ago. It is £36,Q00 now. .The Boards Predicament. • Mr Hennessey said that the Minister or Marino had said that if he gavo a permit to build another wharf he might be up against tho Railways Department, and the Minister of Railways had notgiven any definite answer when • asked if lie would give railway .connection to another wharf. In', fixing' a price for the wharf, the Railways Department had capitalised the earnings hot of tho wharf but of the port, and it was alJlo to do this through the board not beine allowed to carry, out -its functions as a board. This was not fair' play.' Mr. Herries said that he had offered to subsidise expenditure by the Marine Department in deepening the channel. 'It was not quite fair, to say tliat-tho Department was against tlie Harbour Board. _ Mr. Hennessey: We want to be put in the same position as any other harbour board in New Zealand. Mr._ G-. Stiles (Mayor of Foxton) saici that" it. would be much better for the district generally if the Harbour Board obtained possession of the wharf. They had giveu up talking 'about tho moral aspect of the question, and were now Approaching the matter from the business point of view. They asked that they. should be allowed to buy the wharf for £20,000, and that the Govern'meiit grant such terms, by way of debentures or otherwise, as would enable the board to make tliq purchase without, calling upon a rating area.. All that they wanted was an opportunity to make their port, what it should be. Thej had got practically no hearing from .the past Government; they, hoped to got a square deal from this' Government. Mr.' B. K Gardener, Mayor of Levin, said that Foxton Harbour served between 35,000 and 40,000 people, and an area'of close on a couple of thousand square miles. In Levin they felt the position : pretty acutely, because .they felt that Foxton was the natural port of tliat part of the district. There was an idea that the revenue -'of £1400 derived from the wharf belonged to the whole' Dominion, but in equity practically the whole of it should be spent in improving the port of Foxton. 1 Mr. E. H. Cr'abb said that this Was a serious matter for Palmerston North. Merchants there, were crippled in many, lines as compared with merchants in other places.. It was iiot fair that tho Railway Department should retard the development .of the port. . The River in Bad Order. Mr. B. Holben (Palmerston North) said that even a small steamer like tlie "Waverley was apt to stick in sandbanks going up the Foxton River in ,its present state. Mr. Massey: Tho Railways Department offered to contribute to tho cost of dredging the river, didn't they? Mr. Holben: We .understand that, sir, but there is more than that to bo done. Mr Herries offered to provide £400, and the Minister of Marino undertook to provide a zimilar sum. But we have to purchase a dredge, and,our present income .does not exceed £550. Mr. D. Buick, M.P., said that the Foxton Harbour was the heritage of the people of Maiiawntu, and lie did not think ■ it- was ever intended to be a source, of revenue to the «5t o£ f-.lia

Dominion. Th wharf was the heritage of the Foxton Harbour Board. Tile revenue which at present went to the Railways Department should be spent entirely on the improvement of Foxton Harbour. Nothing iiad been spent upon tlio harbour for ten or twelve years, and it had got into such a state that it was unlit for ordinary navigation. Ho hoped that the Government "and Mr. Massey, as Prime Minister, would see that justice was done to the people cf -Manawatu. Mr. Massel-y said they must always bear in mind tt'he fact that Mr. Herries was, for the time being,- tho trustee lor tho peopl.e of the country in regard to -railway property, which included wharves. It had been said that the Railways Department was willing to sell t'he wharfs. ,Mr. Herries: That value was -fixed two years ago. Mr. Massey said that the price which had been mentioned was £28,000, and that offer still stood. That was a fair value c Mr. Holben: Would you consider it sound business to' colleot £1400 a year in revenue and put nothing in for maintenance P Mr. Herries: We are spending something on the wharf. Mr. Holbeir: You have only done it during the last month, honourable sir, and it has been built for the last thirty years. Mr. Nash asked whether the Railways Department would accept £28,000 at the rate of £1000 a year. Mr. Herries said that the Foxton Harbour Board had offered him £28,000 on certain terms—on such terms as would require a special Act, which could not be got through the House unless provision were made for a poll. Mr. Massey (to Mr. Nash): -A thousand'a year, with interest P . Mr. Nash: Without interest. Is not that a reasonable offer? . Mi 1 . Massey: I should say that if.the valuation of the wharf .at £28,000 is. sound it is not a reasonable offer. • Mr.. Hennessey: Tho Government have .taken up a position that is not honest.i , ' •Mr. Herries in Protest. Mr. Herries: I must protest .against t'hatl I have endeavoured, ever'since I assumed' olfice as Minister of Railways, to meet you in-every possible way. I have kept the offer in' front of. you that I made two years ago. I' object .to Mr. Hennessey saying I am not honest. Mr. Hennessey-said that-he was not saying the honourable gentleman' was not honest. ... Mt,. Hemes: ,It is not the way to get what you want—to, accuse people of not being 'honest. " ' ' - Mr.'Hennessey: It is. not honest dealing on tho part of. the Government to ask us as a, Harbour Board to - pay - so much for a wharf that is valued at not more than £3000. I am very, sorry-1 hurt tho honourable gentleman's feelings. ' ' ' • -■• Mr. Herries: I am trying to meet you in every possible way, but, I cannot sell the wharf at what you want to give me when' my Department says it is worth £36,000. Arbitration Suggested. The Hon. F. M. B. Fisher said that he had visited the Foxton district and had heard a number of similar .deputations, but all were barren of result. He did not think i.t a. w:ise proposal that the-board should pay £1000 a year for 28 years... The : .wharf waSviiot worth. £28,000. It would require rebuilding .long before they finished paying for it. Ho believed—-he did not know whether his colleagues would agree with him— that the only way out of the difficulty was by mean? of arbitration. If the Railways Department and the Harbour Board would agree to this an engineer could, be appointed to assess the value of the wharf. ■■ Mr. Herries: And also of the goodmil? . Mr. Fisher:. Yes; that could,.be assessed separately. I think that arbitration is the only way out. In the meantime if- nothing comes of this I stand bv the offer to give £400, the Railway Department giving a similar amount. _ Mr. Stiles said that the value of tlie wharf had been capitalised at 3} per cent. This was- unreasonable. Local bodies could riot look at per cent. He suggested that _the_ value of the wharf should be capitalised at five per cent. . , Mr. Buick said that the money earned by the. wharf should be spent on the river, ; and Should not go to the Railways Department. Whether the Department or the' hoard held tlie wharf, ■the revenue, after deducting, working expenses, should be expended upon river improvements. A Tentative Agreement. After some further discussion Mr. Nash asked whether the offer made hy the Minister of Marine would be acceptable to.the Minister of Railways; Mr. Herries:' I should have to 'put that before Cabinet.. Mr. Massey Better let it stand at. that, gentlemen; We can't go any further until it has been before' Cabinet. Mr. -Fisher: In the event of the Minister of Railways placing a recommendation before Cabinet to submit the matter to arbitration, would that be acceptable to the Harbour |3oard? ' Mr. Hennessey said that' he was heartily sick of it. He was always bumping un against somebody. He had spent the last five years -in trying to get justice done to the town of his adoption, and lie would be prepared, personally speaking, to accept the suggestion of the Minister of Marine. They were labouring under a grave' injustice at -present. . • . ■ Mr. Massey: 'Are we to understand that you are prepared to go to arbitration? Mr. Nash (after conferring with' the other deputat-ionists): Yes. ' It was mentioned that only one mem-" ber of the Foxton Harbour Board , was absent. Mr. Massey: All right, we will'leave it at that. '■