GREYMOUTH HARBOR COMMISSION.

Hokitika Guardian, 13 January 1921, Page 4

GREYMOUTH HARBOR COMMISSION.

TO DEFINE RATING AREA

(Argus Report)

The Commission .appointed by the Government to define the rating area and to enquire into other matters connected with tlie Greymoutli Harbour opened its sittings at the Magistrate s Court, Grey mouth, yesterday morning. 'Flio personnel of the Commission was: —Messrs A. T). Thompson (chairman), W. S. Short, and R. >S. Galbraith. I The foljowi'ng representatives of local bodies were present: —Messrs J. A. Murdoch (divefrs Westland Ratepayers; A. G. Pilkington, and Jas. Park (Hokitika Borough Cotmc.il); W. J. .Joyce (Grey County Council) J. W. Hannan (Greymoutli Botrongh Council). F. Kilchingham (Greymoutli Harbour Board), D. J. Evans (County Clerk Hokitika), W. J. Jeffries, W. If. Chinn (Okarito Harbour Improvement League); J. D. Lynch, 11. F. Hoogan, F. H. Denton (Grey Borough Council); j. Steer, J. D. Gillies. J. McLean, W. I>. Gilbert (Greymoutli Harbour Board); M. Keating .(Gireymontli County Clerk), J. Auld (County Chairman. Becfton): Mr Williams (Railway Department). Mr T. E. V Seddon, AI.P. wtis also present.

Before the proceedings commenced the chairman read the proclamation authorising the commission. The 'chairman said that the main question to lie settled was that of the rating area, and he thought that should lie dealt with first. MR. .1. A. MURDOCH. Air Alurdoeh said that the scope of the Commission was vary large. Owing to the lack of administration of the Greymoutli Harbour Board, particularly since 1915, the Board had drifted to its present |M>sition. He contended that it was impossible for the Commission to report report to-dav on something that was to take plats’ in the future, and consideired that there uas no necessity whatever for any rating area. If the Grey Board lfad emphasised its position and pursued a right course they would have found it legal remedy, and it would not have been necessary for the Government to step in. Through failing to do this, the public was affected. This, he considered a strong point. The Act of 1881 gave the Board certain rights but one by one they had dwindled away. 1 p to 1915. a strenuous fight was put up, hut about that time the personnel of the Board changed. Why should the public suffer through the Board s maladministration ? STATE COAL ROYALTY.

Mr- Alunloch was granted permission to read evidence on the question of the State Coal royalty, hut not regarding the taking over ol the GreyISrnnncr railway.

It was explained that present members of the Board were all north ot the Teremakau. Air Kiteliingbam adding that at the time of the alleged maladminst rations, Alessrs Alurdoeh, Michel and Scantlebury were members. Mr Alurdoeh requested that the Greymouth Harbour Board should he asked to produce its minute books since January Ist, 1915, (it least, and also its letter hooks and all documents from the same date relating to special rate on coal and royalties.

j Air Kiitehingham : Do you suggest dial the hoard should ha.vc collected special rates and royalties in the past and failed to do so? j Air Alurdoeh: Yes, T want to see ! how far the Board has gone. The Chairman ruled that the Commission could not go into matters of the past. They could only take evidence on the question of future royalties. Air Alurdoeh said that if he had known that lie would not have attended the Commission. He wished to enter a, very emphatic protest against the ruling of the chairman. Air F. Kitchingham said the rating area was the main cause of their presence there that day. * The next was the collection of Harbour Board rate through the general public. Then there was tlie amendment of the 1920 Act I (section 5) regarding the subsidy which the “Minister may from time to time determine,” and not exceeding £15,0(H). j Again, whatever amount was paid had I to lie applied to interest and sinking fund. Was it that only so much would .be paid as subsidy to pay the loan Charges, and when paid would the subsidy cease?

It was promised that legislation would lx.* brought in in time to allow , the Board to discuss it, but. the Bill | had been pushed through at the last moment. The profits paid by the Grey-Rrunner railway were as high as 013,000, while the subsidy of £15,000 was but to be paid from year to year as the Minister determined. Even if this was respected, they were tied by Section 3 regarding interest and sinking fund. The railway made an absolute profit from 20 t<> 30 thousand : n former times. The Board protested against the Bill in its present form and wanted a fixed amount. If the Board had paid off all its loans it should still get the £15,000. Tie was sure profit.? of £30,000 in one year, could hot he turned into a loss of £IO,OOO the next. As a matter of common sense something was wrong somewhere. It was inconceivable that a section of seven miles carrying the main traffic of the Coast could be run at a loss. Hie subsidy should be paid as a light. Air Kitchingham then called evidence. EVIDENCE ADDUCED. . ■ t ~ Mr ,{. Steer, Chairman of tho Harlxiu.r Board, said lie had been chairman since 1915. -The board wished all areas that were receiving benefit from the harbour to be included in the proposed rating area. This area should take in tile West-land, Urey, and limngallua Counties and tho included boroughs. As far as he knew there was very little tonnage entering or leaving Hokitika harbour. The whole of tho district he asked to he included did receive benefit' from the liarboiir The amount of the coal rates collected by the Board was £4,000 per year. Besides there would .be the annual subsidy of ;C15,000 from the Government. The sic two sums together would approximately' pay the interest and sinking fund on the amounts at present due to the Government. The

other sources of revenue were rents, royalties and harbour rates and dues. He did not think it would be necessary for the Board to levy a rate flthougli there might be a falling off ;n revenue when the Otira Tunnel was opened. No doubt a large quantity of timber would go through the tunnel hut there would still be a large export from Greymoutli to the North Island

and overseas. It was likely that a large amount of the timber that would go through the tunnel would come from the mills on the Otira line. With regard to the £15,000 subsidy the Board considered it should not be earmarked for the payment of interest and sinking fund, for a time might come when it would not he requiiod | for that purpose and then the Government could Stop the subsidy. The | Boaird thought that it was entitled Ito £15,000 a year for handing over Ms

most valuable endowment to the Government, which should pay both d'oyalH and wharfage. The railway system being a commercial institution they considered it should he on the same footing as other concerns. In reply to Air Alurdoeh, .Mr Steer said he became a member of the Board in 1902, after the 7000 acres were taken hv ’the Crown. As the Alayor < f Greymoutli he was chairman, and remembered that on account of representations 3,400 were substituted. He was aware that the proportion ot coal sold by the State Aline to the public compared with that used by the .State Department was a proportion of about one to six. Mr Alurdoeh urged that the Board gel a royalty and special rate on all coal from the State Alines. Incidentally he mentioned that lie was not on the Board at the time mentioned by a previous speaker. a!., 0f,,,.. 4ii.it ii/iii- ilm nnhlir

Mr Steer said that now mo puumwere taking over the responsibility of the Greymoutli Harbour they should receive all inonieS accruing tlißrefrom. He asked the Commission that full royalty he paid on all coal and full special rate ill a like manner. They wanted the special rate to continue, not only until Iff2), but for all time. They considered it a fair charge. He suggested that the systems used by the Charitable Aid Boards should be adopted in the present instances. At the completion of the Otira tunnel lie thought timber from South Westland would not go further than Ashburton. •Hl* did not know that Canterbury would probably absorb the whole of the Wset Coast timber supplies. The Board agreed to Clause 1 in the 1920 Bill. In the event of (lie Bill not being acceptable another Bill was being prepared oil the same ('veiling that the Bill was passed at Wellington.

The Chairman: You were preparing a new hill in the event of the present Bill not going through? Air Steer: We were drafting short clauses dealing with (lie £15,000. Chairman: Then you were not drafting a new bill. Air Steer: No. Air Steer said that the Board had never referred to Clause 2 referring to the giving up of the G/tey-Brunncir railway. The main objection was that the Alblister may at some time reduce the 015,000. 'Hie Harbour Board had had no opportunity of agreeing to anything. They had no option hut had to accept the £15,000 but were satisfied that the railway would be worth much more. In 1915 an Act was passed forbidding the Board to increase its charges. This materially affected the finances of the Board.

Replying to Air Pawk, Air Steer said that Hokitika, were shipping the goods over the wharf and should >e brought into the rating area. Air Park : Are they not paying for it ? Cliiiirmnn: You must have a rating area. For that reason why should Greymoutli come in? Air Steer: Hokitika is allowed the lowest rates in the Dominion. But have you got a port? Air Murdoch: When the strike was on you found where there was a port. Chairman: Do the Hokitika people use the Grey harbor? Mr Park: They do—to a certain extent. They will do so far lohs when the tunnel is through. Air Jeffries asked wlmt benefit the residents of Bruce Bay, Okuru, Okarito, etc., were to receive by being ncloded in the area, to which Air Steer replied ihat as the residents of these districts were receiving goods from the Hokitika merchants which in the first instance, came over the Grey bar, they should therefore pay their share. The amount of exports from the AVaitalia went over the Grey wharf, lie was not aware that wool and timber from thc> Waitaha did not come this way and that the stock was exported through the Flaast Valley. Air Joyce (on behalf of the Grey County Council) cross-examined Air Steer at some length, regarding tlie Boards’ acceptance of the Bill in ds present form.

In 'reply to Mr Jeffries (Okarito Improvement League), Air Steer said it was desired to include Big Bay in the rating area. All the places with iiii the boundary of Westland used Greymouth as a port and it was only fair that they should be included. He was not aware that the greater part of the products of South AVostland did not pass over the Greymouth wharf. To Air Joyce (Grey County Council): The population of some of the places in South AVostland was very small, and consequently the rating would not amount to much. The Chairman decided to hear the Reef ton reprasentiatives next on account of them having to make the velum journey. James A. Auld (Chairman. Inangahim County Council) said that lie would like to know how t.ho district would stand when the tunnel went through and when Ihe railway with AVestporfc was completed. They had in their district a number of Christchurch merchants who would make use of the tunnel AVhe.ii linked up with AVestport," the port of Greymouth would not exist for Reef toil. They protested against being included in the area, unless at a future date the whole position might be reviewed.

A. M. Carroll (Inangahua County Councillor) spoke regarding the export of produce. AH AV. B. Auld, Inangahua County Clerk, objected to his County being included in the Rating area. 'Hie goldmining companies were rated on annual capital value and the state of the indus-

I try would not stand another tax. In 1 1914 the capital value of the quartz mining companies was the improved ! value of £367,115. A rate of 3Jd in the £ brought in £4,971 16s. In 1920 the i j capital value was assessed at £589,390 and unimproved value £168,360. A I rate of 4(d in the £ brought in £2,986 t 15k showing a decrease of some £2OOO. 1 Air W. Jeffiries (Okarito Improve- - ■, • 1 i 1 I- _I „ .. Sh Cnil

ment League), said the whole ot boutn Westland at the present time was producing stock etc. They were not deriving any benefit front the Greymoutli Harbour Board. The Government steamer “Hinemoa”, four times a year took the hulk of the imports to Jackson’s Bay. Tlie cattle and sheep were sent over the Hnast Pass into Otago. The bulk of the wool is shipped in the • ‘‘llinemoa.’’ These facts showed that the Greymoutli Harbour was ot vor >' f little use to the population of this , p i -lrvoct When the Ho-

part of the AVest Coast. When rue no- | kitika Harbour Board rating area tvas j defined places south of the Big Waitaha | river had not been included in the 1 rating area, as it was realised that the Hokitika harbour would he of no benefit to these places. In face of these facts it was ridiculous to suggest that they should be included in the Greymoutli Harbour rating area. AYm. Chinn (AVestland County Council) protested against the inclusion of the districts below the Waitaha river. The Otira tunnel would shortly be completed and no goods from that district would go through Greymoutli. Again there was a harbour at Okarito and a League had been formed for the development of this harbour. The f,Veat Westland Timber Company had taken the right of limiter areas and they intended to assist the League to improve the port and later to use scows in a direct service for shipping timber' . to Wellington.

Geo. Panuncnt (Town Clerk at Kumara), said that the ratepayers of Kumara were in an unfortunate position as regards |rating. There were numerous roads to he kept in repair, while the royalty on the timber got in the Kumara district all went to the Grey and AVestland County Councils. The Commission will resume at 10 a.m. this morning.