PORT OF WELLINGTON

Dominion, Volume 11, Issue 154, 19 March 1918, Page 8

PORT OF WELLINGTON

SURVEY OF OPERATIONS SOUND FINANCIAL POSITION. "The past year has been the first in which the board has seriously felt tho adverse pressure of the great European war," says tho secretary of the Wellington Harbour Board (.Mr. H. E. Nieholls), in his report covering tho twelve months ended September 30, 1917. "Trade and shipping Kept up fairly well during the first four or five months, and the results of the fir«t half-year, though they showed a decline, were yet very good under the circumstances. But in the second half of tho period there has been a marked and progressive decline both in the tonnage of shipping and the quantity of goods passing over the wharves. This decline, primarily due to the inevitable shrinkage of imports and the shortage of shipping, was intensified, firstly by the Australian strike, and, secondly, by the local coastal slipping stoppage;which last regrettable happening almost completely held up the traffic t.o and from tho smaller ports during the month of September. No Teturn to the figures of 1915-16 .seems likely till the war is happily ended, and careful going should, I think, be the order of the board's day in consequence. The board may, however, be congratulated that during the past year such good figures and results were attained as the appended statements and roturns disclose.

"The sinking fund on September 30. 1917, amounted to £201,985 9s. 2d., represented by £200,008 17s. 7d. investments, and £1970 lis. 7d. interest accrued to, But not due on that date. The increase of the fund for the year just ended amounts to £14,032 10s. Id., mado up by £4900 contributions from the board and £9132 10s., Id. interest on investments. The average rate of investment was £4465. lid. per cent., as against £4 los. for the year Dreccding.

"The amount paid for accident pay to tlic casual employees during tbc past year was £735, to the permanent staff £231, and for sick pay to the permanent staff £135, in all £1101, as compared with £1279, £1193, and £1408 in the three previous years. Towards the sum of £735 paid by tho board as accident pay to casual employees the .sum of £721 was received from tho board's insurers who liavo also been liable for all further claims, under tho Workers' Compensation for . Accidents Acts, and which further payments have not passed through the board's hooks. The board, as in former years, took its own risk with regard to the permanent staff. Tho amount to credit of the fund at September' 30, 1917, exclusive of accrued interest, was £15,143 Bs. Id. i_ "Tho public risk fund, at September 30, 1917, stood at £3966 lis. lid,, exelusive of accrued interest oil investments. Tho claims paid hy the board for goods during tho year totalled £224 55., as against £342 lis. 9d. in the year preceding. Sixty-eight claims were paid, tho analysis being as follows:—Accidents, 17 claims, £27 18s. Id.; pillage of goods, 27 claims, £73 18s. 6d.; for goods lost or stolen,' 11 claims, £109 95.; for adjustment of orrors in delivery, 13 claims, £12 IDs. sd.

"The number of tho board's permanent employees 011 September 30,/1917, was 328, of whom 299 had their lives insured under tho board's scheme, towards tho premia of which policies the board paid £1133 14s. Bd., tho total sum assured being £62,470, or an average of £209 per employeo assured. Tho proceeds of tho matured policies of fifteen moriibers of tho staff, amounted to £3710 18s. 6d., are held by the retiring allowance trustees on fixed deposits, tho amount of added interest to September 30, 1917, being £651 14s. lid., making a gross total of £4362 13s. sd. During the year the sum of £393 10s. 6d. was paid over by tho trustees to members of the staff retired 011 superannuation.

"On September 30, 1917, the num : ber of the board's employees contributing to the superannuation fund was 273. The payments made by the board for tho twelve months were as follows':—Contribution to superannuation fund (eq. 65 per cent, pf employees' contributions), £2589 165.; allowances to superannuated employees for service prior to Marcli 31, 1913, £1434 3s. Id.: total, £4023 19s. Id.

"The' balance-sheet of the fund for the financial year ended December 31, 1916, showed the amount of the fund as £22,647 35., 4d. The accounts have been-duly audited and found correct by the Auditor-General, and the triennial actuarial examination by the actuary of the Government Life Insurance Department is in progress. During tho year ended September 30, 1917, fifteen retired employees received £1536 os. lOd. (for superannuation £101 17s. 9d. and allowanco for back service £1434 3s. Id.), whilst, ten widows received £146 os. 6d., and five children received £72 lis. Bd. Refunds of contributions to employees or their representatives for the same period totalled £43G lis. Ud.

"The,total assets of the hoard as at September 30, 1917, are estimated at £1,496,0112, of which £205,679 ropresents cash assets (including £34,078 special reserve fund), £201,985 sink, ing fund, £2243 accrued interest on fixed deposits, £2171 accrued rant on Roods in bond, £5318 valut nf hoop steel in stock, £491,965 ;i.s real estate (including retaining sea walls), and £586,651 as tho value of -wharves, stores, sheds, offices, dredges, launches, buoys, moorings, plant, and machinery.

"The liabilities of the board on the same date totalled £859.6-16, of which £8241 was for accounts due, £1401 for liability to Miramar Borough Council to meet payments to Treasury in respect of Miramar, Seatoun, and Karaka Bay wharves, and £850,000 public debt. This last sum includes £30,200, representing three hundred and two debentures of £100 each, purchased from holders by the Commissioner); of Sinking Fund under the provisions of the Wellington Harbour .Board_ Empowering Act, 1902. The Commissioners will •conLinue to purchase, the board's debentures .on a gradually increasing scale until August, 194G, at which date the whole of the debentures of the £850,000 consolidated loan should be in their hands! The estimated balance of assets over liabilities on September 30, 1917, was £636,366, as compared with £604,547 on the corresponding date of the year before, an increase of £31,820.

"Summing up the result of the past year's working, I think that, taking into account the shortage of shipping, the shrinkage of imports, and the higher rates that have had to be paid for wages, cartage, hoop steel, and other supplies and services, the board may be congratulated on the fact that the position is so good. At the same time there can be little doubt that, if the war continues for any lengthy period, the board will he faced with the prospect of a series of lean years, owing to decreased production (following on loss of man-power), shortage of shipping, and .shrinkage of imports. Revenue will almost certainly fall off, whilst standing charges cannot decrease pro rata. 1 would therefore strongly urge that caution and economy lie observed in all directions, and that all experiments or works that arc hot warranted by urgency or by the certainty of a fair and immediate return on capital invested should bo avoided as far as possible."