THE HARBOR LOAN BILL.

Taranaki Daily News, Volume LI, Issue 73, 21 March 1908, Page 5

THE HARBOR LOAN BILL.

DISCUSSED BY THH BOARD. SKKDJO FUND PROVIDED FOR. BILL APPROVED. The New Plymouth Harbor Board yesterday discussed the borrowing proposals at some length. Mr Maxwell introduced the matter, asking that the matter of a sinking fund be first considered. There were several southern members against the Bill, lie would ask all members before voting on the Bill to agree to a sinking fund being added to the draft'. He knew all the members wanted to do the best they could for the ratepayers and the port, j The Bill was not quite complete, and at one meeting after another, resolutions J mad been tacked on. In several pl.«i*s • sinking fund had been asked for. It had occurred to himself and otlu-i, uiat while they were framing the estimates •■ land they had overlooked the tact that some ot the leases were 0.K1'., and •s some of the O.K.T. tenants might acquire the freehold a windfall might occur in some years to the detriment of others. The income ironi land fund for next year was estimated at £4500, but if some of the OJU\ lessees acquired

the freehold it would cause a big jump iu the revenue, and a falling away 1:1 following years. The surplus irom unu fund, endowment revenue, and other revenue should, he sam, be paid into a sinking fund, The annual charges were set down at £I2UU, aud it a rate were not collected it appeared as ibougn there would be a denewncy. Thai would be the case if tncy had to pay the full : amount of charges the first year, but ' they would only nave to pay part 01 it, and a rate would be avoided by accumu- ' kted balances. In three years the accumulated balances would be JCoOuu. mis ' object was that the accumulated bal- 1 auces of the four years following me J

pausing of the Bill would not be liauued ov«r to the sinking mud, ior there was --^- —~hq possible chance of me rate being ■truck up to that time. The estimate* had been based ua rents onlv. Ijiu m cases of principal sums —where U.K.I'. Or deferred payment selectors acquired the freehold—Uie capital amount would be handed over to pay the Board, and unless some provision was made the land land would suffer in succeeding years. It was intended that where principal, ■urns were received by the Board tbey ahould be handed over to the sinking fond commissioners, the principal to constitute a sinking fund; but tie revenue from these sums to be paid to tbe Board as if they were rents t>eing received from the Crown. He moved that (or the purpose of providing a sinking fund the Board should pay the commissioners all monies received by the Board as mentioned in section 19 of "The Sew Plymouth Harbor Board Ordinance, 1875, Amendment Act, 1887," namely, tne proceeds of the sale of Crown lands, and the commissioners should pay the Board all interest and profits accruing therefrom accruing therefrom to be ap- ( plied by the Board in or toward* payment of the charges on the money borrowed under this Act; and that for the purpose of providing a fund for the liquidation of the annual charges on the money borrowed the Board should ■et apart the reßts from Crown lands, all moneys received by the commissionels', and the net annual revenue of all land endowments owned by the Board, ytid (to the extent of £4500) tip net annual revenue from harbor dues, provided that if in any year after tic expiration of four years from the raising of tne loan the total amount so appropriated and set apart for liquidation of the annual charges on the money torrowed should exceed the amount required to pay such annual charges flie Board should pay such excess to the finking fund commissioners, and it should be added to the sinking fund. It might be thought, Mr. Maxwell continued, that the motion would not provide sufficient for the sinking fund, but to his mind the j provision made wan bound to be a steadily increasing quantity. The land fund would rise steadily, and the endowments must also rise. The Board received last year £1033 from this source, and this year a most valuable piece of land had come into their hands, which would let at greatly increased rental. For the purposes of the Bill, they had cut down ' the values of the endowments substan-

tally, and u putting tie estimates before the Board they had eat them down again by SO per cent. So they were making a perfectly safe estimate. In addition there were several leases falling in in about six years. These lands were now leased at very low rents, ami mint, too, be a rising quantity and would very I soon—in his opinion before the four years bad expired—overcome the defici- ( aney in the annual costs and go to prowide a very substantial sinking fund. He thought members would agree that i* was a wine and proper thing to provide a distinct sinking fund no as to level out the loan, meet the desires of the xatepeyers, and satisfy the House that everything had been provided for on injsmesslike lines. Mr Xewton King said although lie was originally against a sinking fund, he found there was a feeling in the eountrv in favor of such provision being made.' The difficulty was that the Board never knew how many 0.8.P. leases would be paid off. He had pleasure in seconding that the clauses be added to the Bill. Mr. Marx said he would prefer not to go on with the vote if possible. It seemed to him the measure was before them sjrith insufficient information. A return of all tie properties, leases, endowments. and land fund lessees should be before the members, in order that they could examine all the lands that the Board looked to for revenueMembers pointed out that such a re turn had already been before the Board. Mr. King proceeded to explain the position of the town reserve endowments, and land fund revenue aeording to the latest Government return, showing that the land revenue is continually rising. • Mr. King and Mr. Oonnett held that the annual rental from Crown lands could not go down, but must go up as Settlement proceeded. _ Mr. Hughes said there seemed to him to be too much supposition about the amounts proposed to be set aside to build up the sinking fund. In reply to a question by Mr. Marx. the chairman pointed out that by the 'Act of 1874 the 25 per cent of the whole of the revenue from the Crown land in the province wa- tlie property of the Board. ilr. Maxwell emphasised that the revenue from the land fund undoubted') jneant the extinguishing of the rate. The chairman drew attention to one Tiew that seemed to have been over-1 looked. As a quarter of the revenue from Crown lands in the province had been pledged towards the harbor loan. if the loan were extinguished the n>eessity for this revenue would be gone. and the colony would get a present of Hat snm. Why should the Board make a. present of that sum to the colony! Mr. Maxwell again replied, and asked members to support this improvement to the Bill- even if they should 1 iter oppose the Bill. , . , , , The motion wa- put and carnal tin-nnimon-ly. Mr. X. King then moved the adoption of the Bill, with the addition- now carried. Mr. Maxwell seconded. He had opposed every previous proposal because they had not taken the burdens of the ratepayers. The present Bill did so. and had other exceptionally good features. Necessarily the money to be borrowed must improve the harbor, if for coastal purposes only. From all points of view the Bill was" a thoroughly sound bu«ine-s proposition, the needs of the port were met, and the burdens of the ratepayers jrere Mted. The measure, in every way. should recommend itself to every ratepayer. He hoped it would lie carried now, that it would go through the House, and that the ratepayers would earn- the loan. For on that dav, he was convinced, the liability of the ratepayers would he' extinguished- It would, he said, have been sorely against his conscience that he would have voted against the Bill bad the ratepayers in his district given him a direction to that effect. Mr. Hughes said no matter .what directions the meetings had given in bi= district, the recent election had -h"wi> conclusively that the ratepayer- were against the proposal. He had said at some of the meetings that if a -iiikin_< j fund were provided he would support | the Bill. Undoubtedly the Bill »»- a ! good business proposition. He wo-iW like to support the Bill, but did not think he <-oul,l do -o. . Mr. Marx -aid the feeling m the Hawe'ra ward was that they -I.muU not Ik pledged for any further borrowing. ■■'■ would have to vote again-! the Hill on this occasion. Tie would, however, place the position before his ratepayer-. 1 be guided hv them. ITe had to acknowledge he had gained a good deal of knowledge from the di-<-iis-ion. "At this stage it was decided l<> let the following "pledge"' !n the 'iieetmWore taking the vote on the Bill. Mr. Maxwell move.l. 'That the 80-ird pledge itself that it will withdraw the Bill should it he amended (in the floit=e) hi any vital particular, -uch a- the system of voting, the majority requiredto Carrying the proposal, the ear-marking

of land fund, endowment revenue, and a |ntuiimum contribution of J145U0 l> ytlie Board for payment of interest, sinking [ fund, the payment of these sums before j any rate ib struck, the differential rutin)} in proportions and areas as set out, ami contribution to sinkinjr fund as lirovided."

The motion was curried. Mr. Thomson said he would certainly I vote against the Bill. If a sinking fund were a good thing for a larger loan, would it not lie a wi-e provision to ' Make in respect (if the loan for th.> repayment of the prc»ent loan'; lie «m satisfied if they left the Hill alone and proceeded along the lines they were going things would conic out alright. If the worst came to the worst, they could stop the work of extending the breakwater and confine themselves to improving tile harbor in other ways. He spoke of the excellent work the present dredge ( had done, and concluded hy saying that if the Bill were adopted the money raised nuder it might not b e the last required: that the ratepayers might at a later period be tailed upon to sanction a further loan. [ Mr. Hine supported the Bill, lie was in rather a difficult position, seeing that th e greater part of his district was cut out of the proposed rating area of the Bill, but they had to remember thait the Board would still draw land fund from, and' possess power to lew differential rates over, the Waitara, 'district. Those of his people who were in the ! rating area were in lavor of the Bill. '

:- If he thought the Bill indicted injustice a on any part of the rating district he e would oppose it; Ijut it was, to Jus e mind, to its best interests, and he would j accord it his hearty support, j Mr. Price, in supporting the bill, said , it was in the direction of progress, and t would be the means of conferring great benefits on the province—benefits tliat .' would tell in the future. In replying to Mr. Thomson, Mr. King i Sjdiid that if the Bill were passed they would only borrow as much money as . was needed. If £225,000 were sufficient for requirements they would borrow only that amount. In regard to the statement that the ratepayers might be mßed npon to sanction a further loan after the money proposed to l> e borrowed were expended, he would say that if after, say, 20 years, the growth of the district demanded still more harbor accommodation, by all means let them go in for a further loan to provide it. The resolution was then put and carried, Messrs». Hughes, Thomson, and Marx dissenting. Mr. Thomson gave notice of motion: That steps be taken to pay off the present loan. ' An informal discussion regarding the ; feeling of .South Taranaki on the loan proposals ensued. Reference to it is made elsewhere. •