HARBOUR FINANCES

Evening Star, Issue 22453, 25 September 1936, Page 13

HARBOUR FINANCES

PROBABLE POSITION DISCLOSED DISBURSEMENT OF SUBHUSES To last night’s meeting of the Otago Harbour Board the Standing Committee reported that it had considered the minute by the secretary setting out the probable position of the board’s finances at the end of the current financial year, closing on September 30, and recommended it for adoption. The report embraced the following recommendations: — That the whole of the current year’s expenditure on Leith Canal and Bowen pier be borne by general account. That the sum of £3,400 be transferred from general account to £350,000 loan account as a temporary advance under the provisions of section 44 of the Finance Act (No. 2), 1933, pending the raising of further loan moneys, of which £40,000 remains unissued of the £350,000 loan. That the sum of £6,000. including the amount of the receipts from the harbour improvement rates, be transferred to the special works reserve fund. That the sum of at least £I,OOO be transferred to a 1938 loan redemption expenses account. The board has debentures totalling £12,200 (the unconverted balance of the 1928 redemption loan), maturing in London on January 1, 1938, and should it be decided to remit the repayment moneys to London a sum of £3,000 will be required for exchange, and it appears advisable to make some provision to meet this charge now, so that the expense may be spread over three financial years. If part of this reserve fund is not eventually required for exchange costs it could be applied in reduction of the principal. Referring to the cost of £3,000 for exchange. Mr D. Copland said ho presumed holders of debentures had exercised their right to be paid interest in London. The chairman (Mr J. B. Waters): Yes. “Is there any possibility of the holders being paid in New Zealand?” asked Mr Copland. The Chairman: I don’t think so. Mr Copland said he understood that some of the holders were resident in New Zealand. The secretary (Mr J. Renton) said the holders of the debentures on which interest was paid in London were domiciled in the United Kingdom. All the New Zealand holders had converted their debentures. _ The recommendations were adopted. PROGRAMME OF WORKS. In view of the financial position disclosed in the secretary’s minute, the Standing Committee recommended that the board proceed with the reconstruction of the south side of George street pier in preference to the flush decking of the old portion of Bowen pier, the work to commence after the 1936-37 export season. The committee further recommended that the engineer be instructed to prepare a specification and call for tenders for the necessary timber for the work on the south side of Goerge street pier. Mr D. Copland said ho understood the Bowen pier was to be half flush decked. Would that be workable? The Chairman replied that the new portion was to be decked. The question decided by the board was whether it should flush deck the old portion of the Bowen pier or improve the south side of the George street wharf. Both could not be done, and the board had given prefex-ence to the latter work. Mr T. Scollay said no doubt existed in his mind that the George street wharf improvement was the more important from the shipping point of view, although the flush decking of the Bowen pier would expedite the handling of cargo. Urging that the work should be completed by the wool season, Mr Scollay suggested that more labour should be employed. The labour was available The Chairman said the board hoped that authority to lay the rails would be received by the Railway Department without delay. The board’s engineer was anxious to engage more men so that the work could bo pushed ahead, and another gang would be employed when the rail laying was started. A large number of men would not be employed —the engineer would put on only as many men as could be economically used. “ Say, double the present number,” suggested Mr Scollay. The Chainnan: No. Ho will put on only the number of men who can be efficiently employed. The board adopted the recommendations.