“MERELY A DUPLICATION”

Sun (Auckland), Volume II, Issue 387, 22 June 1928, Page 16

“MERELY A DUPLICATION”

WAIUKU CANAL IDEA DISCOURAGED “The chamber has no knowledge of any new trade likely to develop as a result of the construction of a canal,” states a report on the Waiuku Canal project presented at the council meeting of the Auckland Chamber of Commerce yesterday afternoon. “The cost of the canal has, the chamber understands, been estimated by Mr. D. Holderness. Harbour Board engineer, at £252,000,” continues the report. “Allowing interest at 55 per cent, per annum, and sinking fund 1 per cent., this means an annual loan charge in respect of initial cost and apart entirely from maintenance of £18,330. This is equivalent to canal dues of 7s 4d a ton on 50,000 tons annually, or 2s a ton on 183,000 tons annually.” The chamber was securing data from the Railway Department and would later be in a position to estimate roughly possible traffic by the canal between Auckland and the Waikato, if railway and river freights were kept at the present level. “The construction of - the canal would result merely in a duplication of existing entirely adequate services and would be uneconomical and wasteful at this' Juncture;” stated the report, which concluded with the statement that with the development of hydroelectricity, coal traffic would probably, however, tend to decline, thus offsetting the favourable elements in the outlook. It was decided to forward the report to the Harbour Board.