IMPROVING THE HARBOR.

Taranaki Daily News, Volume L, Issue 60, 22 June 1907, Page 2

IMPROVING THE HARBOR.

PROPOSED HARBOR BOARD BORROWING. I iilt NEWTON KING'S PROPOSAL INFORMALLY DISCUSSED. JJJPI'EKENTIAL RATING. At the New Plymouth Harbor Board mooting on Friday Mr Newton King iiskcd leave to introduce some extraordinary business. . He knew that notice should be given, but he had allowed the proper time for that to elapse, and it was important that this matter should

be discussed now. ft was in oonnocti"ii with the Hoard's borrowing. An they all knew (he present loan would mature shortly, and there would have to be a reconstruction. He had worked out some figures, which he thought would lie. palatable to members, and he asked the Hoard to take the matter now. Messrs McLean and Thomson objected. Mr. Maxwell suggested that they might hear Mr. King and then decide whether or not to enter into a discussion.

Mr. ICing explained his reason for haste. They would, if the Board favored his sgheme, need to introduce a Bill into Parliament. This should be done early in the coming This would be -the second session, which would oll'er far greater chances for passing a local Bill than would be possible in the third and last session, when the members were generally in a hurry to close the session in order to get away to their constituencies. Mr. Thomson considered it would be unfair to take a vote that day on borrowing proposals. Mr. King said lie was not going to ask for a vote, but simply wanted the Board to hear his scheme and if members considered it feasible, he proposed to give notice to have the matter discussed and decided upon at a special meeting of the Board.

The Board unanimously decided to allow Mr. King to propound his schemo : which he did as follows:

"t propose," he said, "to raise a loan preferably in London, of £300,000 at 4 per cent.; out of this to pay off the present loan, some '£135,000, and apply the balance In completing the breakwater and wharf, according to Sir Napier Bell's plans, with all possible despa tell. The question of providing a sinking fund will probably be argued, hut 1 see no reason for it. However, in any ease, this is not a question of . vory great importance. I suggest milking the whole district, excepting perhaps Opunake and Waitara towns, liable for the full rate of three farthings in tho ■CI, the object of this, of course, being to give the lenders an absolutely golden security, which always means a lower rate of interest. A special provision will be made in the Bill to rale the several districts in the following proportions:—

New Plymouth: l-7d in ihe £ on £1.073,154, to raise £O3B. New Plymouth suburbs (road board districts adjacent to New" Plymouth): 1-! Min the' ,C on £033.845. producing £432.

Stratford (to include the whole of North Tnrsinaki outside New Plymouth end suburbs, such as Tariki, Tnglewood, and so on): 1-1 Id in the £ on £2,547,300. producing £OB4. Hawera, 1-17J in the £ on 0.541,0.10. producing £378. Taranaki South: l-17d in the. .£ on £1.082,400, producing £205. Clifton: I-17d in the £ on £730,485, producing £18(1. Total rating value, £7,904,520.

Total rale, .€2883. '■On these figures," continued Jlr. King, "the position will be as follows: EXPENDITURE. To interest on loan of ,€300,000 at 4 per cent C 12,000 To costs of collection, sny .. .. 500 Total .' .€12.500 RECEIPTS. TVy bind revenue, say € 1.050 li'v rates .' 2,88:1 liy proportion from profits of harbor working account.. €4,057 Total €12,500 As our net profit on working account, including endowments, amount to £730!) per annum, it does not seem too much to say that it is not likely we shall have to pay more than the rate 1 have mentioned as allowing in the future for a shrinkage in the berthage tax, we have as a partial sot-off the valuable endowments falling in shortly, and a steadily increasing trade and land revnue. The land revenue, he said, had increased hugely of late. A fact that might temporarily affect the finances was (lie result of the freehold v. leasehold movement. If the (,'ovornment granted th" Crown settlers to convert their leases to freehold there need lie no rate levied for very many years. The rating value of the Now Plymouth Harbor Rating District now was .€8,170,305, and a thresfartliings rate on that, would produce €25,551 annually, a sum that would never be required. The loan now shorl ■ ly expiring was practically .€140,000. The original loan had been £200,000. but the sinking fund wa.-: now about £OO,000. Four per cent, on the. €140,000 would account for £5000; costs of collection, £250; or €5850 per annum would be paid off the existing loan. All he asked was that the harbor ohould be put into such a position Hut the profits could be used as they should be, and transferred from the working account to the.rating account in order to save payment of rates. He ertuvd the indulgence of the country memlers in arranging a special meeting for, say, a fortnight hence." Mr. Ward .igrccd that if each mom l.'i- wore supplied with a copy of Hie

; 'Ojiosals, he would be as well prepared l.i discuss them in a fortnight as at Hie next monthly meeting. The chairman, Mr. Connett, point.-d out that they weie now paying a farthing rate. Even if there were no land revenue, and no surplus profits, he

considered the interest on ,C3(I(),()()0 could be paid without rating Ifawera, South Taranaki, and Clifton by over a farthing rate. He would be told, doubtless, (hat unfulfilled promises had been made before'. Ratepayers, it would be said, were assured there would be no rate, but ■he rate came. The position, however,

was very different now. Under the present scheme New Plymouth was to be

rated a seventh of a penny, in (he £ as against one-seventeenth in the districts not so immediately concerned. Even if the Board exacted four times the proposed rates, the out-districts would not

pay a farthing as they did now. As a member of the Land Hoard ho could assure members that the laud revenue was increasing, and would continue to do so. J'robal ly the doubt on the Land Hill question was helping the land revenue. Leases on the. o.r.p. system were being taken out in large numbers. Mr. King, in his figures, had dealt only with rents, but there must also be large revenue from lauds sold. Mr. Connett

added that it was the duty of members to put the matter fairly before the ratepayers, for the prosperity of the whole district—not New Plymouth—depended on the harbor. Every district should back- it up. There was now more reason for that support, for the intention was to make (his a deep sea harbor for ocean steamers. There were other coastal harbors that could compete with Now Plymouth, but there was no other deep sea harbor possible along this const. There was need for quick work, for it would take from 12 to IS months to get a dredge. And a new dredge was essential. The present one had done remarkable service, but it would not meet I'u-

hire requirements, lie was quite satislied himself that if the loan were secured no harbor rate would lie required,' hut it was as well to offer good security, for the better the security Ute better terms could be obtained.

Mr. lline asked if the passing of the Waifara Harbor Hoard Kmpowering Bill would affect the position, Air. King answered in the aflirmalive. but said the, cliHcren.ce would be slight. Tn answer to a further question, he

said he could see no need for a sinking fund, for the place was going ahead. In the past ten years the revenue of the board line! increased from iCROOO to Eia.ftOn, approximately., and with a dopp sea harbor he expected the hicrease to be even more rapid. Mr. Price suggested a special meeting In :i fori night's time. Mr. McLean considered the time too short. lie was sent to the Hoard pledsrccl to oppose borrowing, and be could not support the proposal without first consulting his constituents, and he could not do that in a. fortnight. That was his only reason for opposing Mr. Price's suggestion. Three weeks would suit him.

Mr. Ward deprecated haste. As soon as the scheme was published the papers would bo flooded with letters, dealing

with it, and perhaps the Hoard would gain some inl'oniiiitiou in tliat way. Mr. Jinx well didn't Quite know what to say. He unite agreed with Mr. King ' Hint ii a Hill were going forward it should go lit this coming session. In the lirst place it would have n better chance of passing than in the last session; and, secondly, if it failed now there would he another session to fall back on, as it were. It was not wise, to leave things too late. Hut (hey were in a peculiar position in regard to the' ratepayers. He had a serious trust to look to, and however he might agree—he didn't say be did ngree, or that others would agree—v.'ilh the proposal personally, he could not vote for it unless he were sure that the ratepayers were going to get an advantage over any probable position that might arise under existing circumstances; unless he could assure ihe ralepavers that they were by the loan going to derive a direct advantage over the state of things without tins loan. He would either have to lay the position before thorn, and lake their .views upon the question, or to resign, and, opposing the seat against a man in favor of the, scheme, thus taking the sense of .he ratepayers. Whilst Mr. King had prepared the scheme well, he could not lKi-eo that it gave a position better than would ensure under existing conditions. They now had a loan, of'which £140,000 would have to be renewed in 100!)! Considering the enormously increased

value of the district, which would "give them £-25,000 annually to pay interest were it required, he thought they would be able to raise the £140,000 on very

easy terms. Better security they could not have, and he believed that if notice were given now the A.M.P. Society would have the requisite money ready for them at 4 per cent, when required. Mr. King: Not at four, but 4>/ 4 ; that's their rate.

Mr. Maxwell maintained his figures. 1 Referring to the prospect of increased | land settlement, ho said that if rents were anything near his anticipations' they would get enough to pay interest on the £140,000 without striking a rate at all. lie thought there was reasonable hope of that, though, of course; the ratepayers would not be free from the liability for a rale. The harbor was proving very successful indeed, and the work being done out of revenue was excellent, as a coastal port. This wan not the time, ho thought, to debate "the advisableness of making this an oceanport, but he felt bound to state that from New Plymouth as a coastal port the district was being benefited greatly. But, looking at the position, on the one hand there was going to be absolute

freedom from rating; on the other, under Mr King's proposal, he could not yel see how there could be any improvement effected. Though the scheme appeared to be a good one, and an equitable .one, it entailed liability. He couldn't accept the figures giving the estimated surplus revenue, for the increased, shipping would entail increased expenditure. Even if these hopeful figures were right the Board would still be calling on the ratepayers to pay £2SB3, when, under existing conditions, they would pay nothing, lie was anxious not to block anything good for the port as a coastal one, iind he recognised that, whilst endeavoring

to get an ocean steamer's port, tjiey must improve it as a coastal port, whether their hopes were realised or hot He could not agree to vote for the sflieme except upon a mandate of tyic

ratepayers. Mr. McLean said he could call meetings, and place the matter before the ratepayers within a month. Mr. Hughes, speaking for the people in his district, required time. The ratepayers needed educating on any such proposal. There was a gieat prejudice against a harbor loan, and he did not know whether it was right or wrong. The matter would have to be fully ventilated. Differential rating appealed to him. ' What was the position now.

Mr. Kin;,' said that now there was a "level farthing rate." The new scheme would reduce Hnwcrn district to 1-17(1 of ii penny rate. Mr. ' Hughe!! suggested that land illicit go down in value. .Vl'-. King: It's a.s fair to suppose it will go up, J think. The cliainiian said the differential rating proposals would he embodied in the 111 11. Mr. Maxwell ilid not like the liability to the %d rate. Whilst there'was no possibility, to his mind, of its even be'i'ng required, I lie bondholders could demand it. And there was nothing vhateivr to prevent an Amending Act to revert to the "level rati..'' Mr. King: It's not likely tlv.'t you , country members will do thtM. I think you're' straining a little too far, .Mr. M.ixweii. v.-' ■ know yon h.ivo the greal.re vi'.ing liii--.-": .: the 10111 uy. The chairman said that New Ply-ui.-Milli had nbeut one million of the vaiu.sii.u! mi;! t'.e country seven mill, .-.is. Was it 'iki'ly that l'arliameot wou'd legislate lor the smaller against the 'rrgcr? One iiiiiig lr- would like to menli'.n. Died-mg had cost, I - Hint's |«,t ye.ir, and more than that formerly. This expense in futniv would tome out of til. i;:!rtn,lli)() loan, if Lurried. Mr. Mi tern -..ml there would be Digger crimes pooled and so on. The elnirnui'i All provided foi ml'. ol ,:,.ni. Mi. .V ■'«■>'• Ml. Maxwell leoufjli; Mr. Kii g > i ti'Mivt.ii nil righ ■ lor the time durme which tip loan w s being expended, but I'.fier ilitif.? '!':■ (li-ii'ii'io itniinded Mr. Mixv.eo 1 a.' '.!'• eer'.i\i- '•■ .--.: •Hieiy-i'ir-eaSi.'o le i-cime, eonseipiei't on the Increased earnii:.!.' power of the port. Mr. lline said the country members I were unfortunate in a way, as they had not all the information as to the harbor's working, cost of facilities, etc. If he were sure that Mr. King's figures were right he would not sit at the table I-.nd hlindlv oppose the loan, as he was pledged to do, if he believed in the SCb'MUO. Mr. King said "the bigger the boats, (lie bigger the lees." The increased cmniing-. would provide all the facilities reiiuired. He said he was not there to mislead people. He would not mislead !u's constituents, his clients, as it were. He mentioned as an instance of the value of the harbor to Southern Taranaki, that the Westport Coal Company was getting a bigger steamer to run ciml here in order to reduce freights. That meant cheaper coal for Hawera. Mr..Thomson was afraid the steamers would outgrow even the deep-sea harbor.

Mr. Connett said they were going to give thi' same depth of water as at Wellington, and that should be a safe policy. Mr. King said that Australian steam-' "vs wore being reduced, if anything, for 7000, 8000 anil 0000 tons steamers wvro found most lnndv and suitable. It was decided to have tho scheme printed nml copies circulated in every paner in the harbor rating district. The whole matter is to he thoroughly and decisively discussed nl next meeting, on tho third Friday in duly.