CANAL ACROSS THE ISTHMUS

Sun (Auckland), Volume 1, Issue 18, 12 April 1927, Page 9

CANAL ACROSS THE ISTHMUS

INLAND WATERWAYS SCHEME NEW ROUTE TO WAIKATO USE OF PREMIUM BONDS Keen interest in the question of constructing: a canal between the Waitemata and the Manukau harbours together with a subsidiary canal to the Waikato River, has been revived. Indeed it has taken form, enthusiasts in support of the project having prepared a plan of the proposed inland waterways. THE SUN is in a position to reproduce that plan and give an outline of the main arguments in support of the scheme, together with proposals for financing it.

AUCKLAND CANAL SCHEME.—This sketch gives a very clear idea of the canal project. Communication between the Waitemata and Manukau Harbours will be started by cutting a canal through the land between the head of the Whau River and the Manukau. A navigable channel will be maintained by the construction of locks—one at the mouth of the Whau Estuary and the other on the Manukau foreshore. Barges and small vessels could then pass from the Waitemata into the Manukau and traverse the channel leading into the Waiuku arm of the Manakau. The approximate location of the Waiuku canal is shown, the lock at the western end being required to prevent the Waikato River, when in flood, from overflowing the canal. An interesting feature of the scheme is the proposed artificial island in the Whau Estuary. The promoters, faced with the problem of disposing of the spoil taken from the canal cut propose to use this material in building up the island which will be leased as residential sites.

Tentative proposals for financing and carrying out the Whau and Waiuku canal schemes were outlined yesterday by Mr. David B. Russell, the concessionaire for the Whau canal, and Mr. William Noton, both of Auckland. It was explained that the original proposal to form a company to promote tire scheme. Those who advocated the canals, however, now considered that such a work of public utility should not be left to commercial enterprise, but should be supported and controlled by a representative board, drawn from members of local bodies directly interested and whose territory would benefit by the waterway.

It would be necessary, as pointed out by the advocates of the scheme, to devise a financial scheme, including' guaranteed repayment of money raised for the purpose of constructing the canals. To do this it would be essential to empower local bodies concerned to levy a small rate on all rateable property in the canal zone. Sufficient money would be required to pay interest and sinking fund. One idea, as suggested by Mr. Xoton, is to raise a loan on the premium bond principle. This would involve a pooling of the whole or part of the interest and providing out of the fund large prizes for distribution by ballot among the bondholders at regular intervals—a system of finance which has been in vogue on the Continent for many years. The sinking fund, of course, would provide for the ultimate redemption of the loan at par value, so that investors, even though they did not have the luck to draw a prize, would receive a fixed interest and all their money back in the end. In anticipation of opposition to premium bonds, it is urged by advocates of the scheme that a great deal of money goes out of the country every year for investment in an oversea horse-racing gamble, which returns a

very meagre proportion of the investments to this country. Moreover, it is pointed out that the art union craze involved “ a fearful waste of money on overhead expenses.” It is estimated, on what is claimed to be a conservative basis, that £150,000 would be required for the Waiuku Canal and £450,000 for the Whau cut to provide an overall ten feet draught. To provide a draught of 20 feet would necessitate an expenditure of £750,000 on the Whau Canal, thus making the total expenditure £900,000. Mr. Russell estimates that the income from ships’ dues would be sufficient to pay interest. £50,000, on the major loan. There would also be revenue from the leased lands of the proposed island. HAMILTON OPINION

The Auckland promoters of the scheme submitted their proposals last night to the Hamilton Qhamber of Commerce and discussed its financial aspects. It was mentioned that it would be necessary to excavate 4,200,000 cubic yards of spoil to form an island 150 or 200 acres in extent in the wide Whau Estuary. Mr. Noton said that as far back as 1906 figures worked out on a tonnage basis then showed that dues at 2s a ton would yield over £20,000 a year. Mr. Seymour asked for figures in connection with the expenditure and revenue, but Mr. Noton said he was unable to supply detailed statistics at present. The chairman, Mr. F. H. Chapman, pointed out that the question hinged on the legality of the proposed premium bond issue.

While not wishing to take a pessimistic outlook, Mr. A. M. Bisley said the scheme did not appeal to him. Trade with the South was being developed steadily and river transport was effecting considerable freight savings. He was more interested in the development of trade through Port Waikato. When Auckland realised that the trade was being diverted in that direction she would push these canals more ardently. The Harbour Board should be the first to submit concrete proposals. He moved that ‘‘at this juncture no action be taken by the Hamilton Chamber of Commerce.” The resolution was carried.

A critical attitude was adopted by Mr. Seymour, who said that if the schemes were likely to prove a payable proposition, then there was no need for premium bonds. Mr. Chapman said the visitors had the matter at heart, but the proposals were not as mature as he wished. He preferred financial arrangements on sound business lines rather than an issue of premium bonds. Hamilton wanted a canal,-but was more directly interested in the Waiuku project. The Whau scheme might follow later. Canals always had been payable propositions. It was decided to consider at an early date the question of appointing a committee to further river transport and canal schemes, having for their object the betterment of the Waikato.