HARBOUR BOARD FINANCES.

Patea Mail, 12 May 1881, Page 3

HARBOUR BOARD FINANCES.

Three new members of the Harbor Board were appointed a committee to investigate the Board’s history and position, with the object of informing themselves generally. At Monday’s meeting of the Board they presented the following report, which shows the financial position up to date : “ Total receipts to date, £19,444 3s ; total expenditure, £19,503 10s 4d ; bank over-draft, £69 7s 4d ; interest due, £175 ; salaries, £l6 5s ; sundries, £2O ; total of present liabilities, £270 12s 4d. The Board’s annual income seems to be from all sources about £675 ; total annual expenditure, including salaries and interest, £IOOO ; shewing an annual deficit in working expenditure of about £325. The committee would recommend that immediate action be taken to sell or lease the reserves not yet dealt with, so as to raise money sufficient to meet the above deficiency, and if possible to proceed with the improvements at the heads as per plans prepared by Sir John Goode.”

The above estimate shows a current deficiency equal to £325 a year. We may explain that this is expected to be more than covered by the leasing of part of the small reserves which the Board decided on Monday to put into the market, the remaining part to be sold for cash to meet the interest due to Government on the loan of £IO,OOO. The interest itself amounts to £7OO, at 7 per cent., and is more than the Board’s total income at present. Of course the Board has up to this date been repaying the interest out of capital, there being no other resource; for it will be obvious that the bits of foreshore which are now to be put in the market could not be realised or leased until the site for the Railway Station was fixed, and until the Government had determined how much of the Board’s land would be required for railway purposes. It was only last week that the Government returned the plans showing the railway boundary along the eastern flat adjoining Coutt’s farm. If the reserve prices fixed for leasing the several small blocks of foreshore be realised at auction, the Board’s income will be raised to about £l,lOO a year, leaving a probable surplus of £IOO for contingent expenditure, snch as repairs to breakwater and wharves. Nothing will remain for sinking fund to repay the loan. The Colonial Treasurer is expected to bring a bill forward in the next session to provide for payment of sinking fund. The Board will have no realisable assets. Its current revenue from leased reserves and wharves will just suffice to pay expenses. The reserves sold for cash will be gone. If the bill reqnire the Board to repay the loan in ten years, out of what fund can one thousand a year be extracted ? The prospective value of the Board’s reserves has been destroyed by act of the Government in altering the course the railway was to take. Any bill providing for a sinking fund in this case should provide the means of paying the sinking fund.