OPUNAKE HARBOR SCHEME.

Taranaki Daily News, 29 November 1920, Page 8

OPUNAKE HARBOR SCHEME.

DIFFICULTIES OF FINANCE. APPEAL TO LOCAL RATEPAYERS. The attendance at tl:e meeting which was called by the Opunake Harbor Board at Opunake on Friday night to receive a progress report of the work done by the Hoard, and to discuss the prospects of the flotation of a loan, was certainly not in keeping with the importance of the subject to the district, there being only about 25 ratepayers present, though possibly the rain early in the evening may have kept many farmers from att ending. Mr. C. A. Trotter, chairman of the Opuiifike Town Board, presided. Mr. T. P. Hughson, chairman of the Opunake Harbor Board, referring to the fact that the attendance had been affected by the elements, said that it was no new thing for the board to be faced with difficulties, which they had had to meet and overcame ever since the board [was, established T)iie!r watchword was progress and perseverance, and they intended to keep going until they achieved success. The chief object of the meeting was to obtain the co-operation and asslstanco of the setlters iu the district is connection with the financing of the scheme. All local bodies had had difficulties in raisins loans, and during the past year a phenomenal amount of local money had been applied for, so that they were faced with difficulties outside in the matter of raising money, and ho thought It was up to them to help themselves. If th-?y could show those who nad money available that tho project would not' only be of great assistance to tho district, but would provide good security and give them as high a rate of Interest as the Government would permit, they should be able to raise the money in the district. In regard to Harbor Board debentures, the failure of Oaimaru and Westport had been quoted. These boards, however, were wholly dependent on the revenue, and had no rating powers, whereas Opunake had a good district behind it, and rating powers that would provide 514 per cent, interest and also G per cent sinking fund tr. pay the loan off, though lie did not think the;, would need to levy the n.te for a very lengthy period, as the prospects of the port were such that in a very few years, with tho revenue for imports and exports, it. would be self-supporting. Opunake had natural facilities that very few such harbors possessed. They had the horseshoe bay wilt, the reef, and the whole of the material ready to hand, only requiring to be shifted into position to form a harbor, whlfh would be capable of working in all weavers vessels drawing up to 13ft L.W.S.T

CHOICE OF TWO SCHEMES. He. admitted that the harbor board did not have much to show for its efforts during tho seven years of Its existence, but he pointed out that tie first five years had been lost owing to the war. When they found that the money could not be borrowed at 5 per cent., a further poll had to be taken, and was defeated, the ratepayers saying ' that when the war w.ts finished they would loyally support tho proposal, and they had kept tl-eir promise at the subsequent poll. The board had secured very valuable endowments, Including 21 acres at the port, and several other areas, which would be a very valuable asset in the future. It did not produce much revenue now, being only let on Ehort leases, so as to be available when required. During the last two years they had also settled tho controversy as to the Inner and outer sites by obtaining the advice of a second engineer, viz, Messrs. Blair Mason and Lee, who reported very fully on the merits of tie outer scheme, clearly showing that whilo It would cost about. £2OllO more than the Inner scheme, it tnffiM permit of extensions in the future. Those members on the board who had been opposed to the outer scheme were perfectly satisfied, and the hoard decided to adopt it.

He detailed the difficulties they had to get ihe Government to agree to tie interest being raised from .T per cent, to per cent., and also outlined the various trips ho had made to Wellington and Lyttelton in an endeavor to arrange for the money. He had practically arranged for the money from the Public Trustee, when a further difficulty cropped up, as a certificate was required from the Marine Dcpaitment regarding the suitability of the place, and Hie suitability 1 of the work about to be undertaken. He thought ilerc would he no difficulty about this, but the Kiigineor-in-Chief required additional information, so there was delay wliile he got a report from Mr. Cyrus Williams, the engineer at Lyttelton, and also obtained an estimate of the imports and cipnrls. TV greatest objection was raised to the sane tiiffleulty. but the engineer was satisfied Opunake wtuld have little trouble with tills, is they were only five miles from tl:e dividing of the sand drift. It was estimated that 1011,000 tons of sand drifted annually along Ihe r> miles of coast to New Plymouth, so thnl ihe probability was that Ouunnke would have, to deal with 20,000 tons at the outside, and a small auxiliary scciw fitted with a Prlestman dredge, dyt'ing from, £ 1000 lo £l",0(i per year, would keep the harbor clear. He did not think fho dredge would be required for the first three years, and after Hat only now and again to prevent •">.v silting up that might take place.

IMPORTANCE OF HARBOR, Tito harhor was of the greatest importance te the district, and would become more so each year, as the land carriage was grauually rising. Railway freights had been increased 40 per cent since 1014. thus making it lugger load for the district to carry. He pointed out that figures collected from storekeepers and carriers showed that tie annual Import* within the harbor district from Oaonui to Pihiima and Te Kirl totalled 2322 tons, and In addition there would be necessary iJOO tons. In the district that would be served by the harbor outside the rating area, say from Warea in the north to the other side of Riverdale, the imports totalled 11,500 tons, and also 6830 tons of coal would bo necessary. Tils, with 10(10 tons of cement, 500 tons petrol, and 12,703 tons of exports from the various factories, would, mean a total of 37,375 tons, which at a wharfage of 5s would bring In £0344 annually for ibe harbor. This, of course, would not take place right away, but showed what the district was capable of, and there was no doubt that If they could show a saving thev would get the business, especially as Heir port was not like a bar harbor, but gave facilities for dealing with vessels in all weathers. Indeed, lie considered that with increased settlement the figures would be increased, so that It would probably only be necessary to rate for a few years. >

ltegarding savings in freight that would ho effected he had taken the rates from the (government official figures, ami for the comparison Inside the district lad taken Te Kir! which he considered a fair average. On flour', oats, wheat, soap, sugar, wire, ranges, cement, etc., the cost via Xe.w I'lymonth and Eltham was 43s M per ton, as against' 7s cartage from Opunake, a saving of 36s r,d per ton. Even wf.h the railway completed via Te lioti the cost to Te Kiri would he 32s Sd, plus Is cartage, leaving a net saving ill favor of Opunake of 2!)s Sd. The saving in exports of cheese and butter would he 25s in favor at Opunake as compared with Xcw Plymouth. l He had gone carefully inlo the s..ving tlat would he effected bv the district outside the rating area, on which they were depending lor assistance in regard to exports and Imports, as Hie more ihev -ot tile more likely tbe.v were to get relief from rales. In this connection ho had laken Manaia as a basis, and had included beer, hide!. Iron, cement, etc., 1(1 different articles. The average cost would be 27s Id to .\'ew Plymouth, and 21s lod lo Patea. with the railway completed, as against 14s Sd to Opunake on a saving of 12s 3d ; ;; •",.,. of Opunake against Xew Plymouth. '".,""', 2d

as against l'atea. In regard to | ITV ,., here was a saving of lis 2d as eompa'- (M .(, \ ew Plymouth, and :>'s art as compared „..,, '-'atci, By having a port of their oSi ; , ",J. lmaicd that the harbor district woiim ~.',',"„'" i2.r,08, made up as follows :—3822 ton-; ''....., ■■ t' 30a ad. £(i!12f); irm tons coal , , IIM

£25.",4; 215" conn exiHUti ■■• ■>-■ ' ;:ieW. That was under present .-„,-i:.: ,„,j ~,.,,„ with Hie railway compleL'-' ,„„ ~ ],\ saving would he £7009. T ,„ lv „ s ~,n ;, 0,ij. a eavlßj that itould not be thrown anide. et-

pecially as if. would slve that much more (money to develop the district. The saving to the district served outside the rutin? area would be on 11,500 tons imports tit 14s sd, £8289; 6850 tons coal at (is, £2055; 10,400 tons dairy produce at 6s 2d, £3200; and 150 tons hides at 19s 2d, £144; or £13,093, making a total saving to the district, even If the railway was completed, of £21,002, that 'was sufficient to pay the cost of the'whole wsrk in three years. Hut he pointed out that tl'ey must not run away with the idea that the whole business would be established at once, because it might take ten years, and in any case it would take three years to get the harbor into working order.

Continuing, Mr. Hughson said that they finally obtained the consent of the Marine Department, but the delay caused them to miss the opportunity of securing tie money from the Public.Trustee, as the Public Trust Board had all its available money taken up When they went on the open market they 'ound greater difficulty still. Their broker bad tried to float the loan, and had tested th* money market, ultimately, advising the board to endeavor to get sufficient money :n their own district to start the work. The board tad not decided on the minimum amount required before a start should be made, but had considered that it was advisable to have £30,000 before starting. They might, however, decide to start with a smaller amount and raise the rest later. QUESTION OP COST, Some people expressed doubt as to their ability to get the work done for £65,000, but he pointed out that the latest report 'from their engineer assured them that ttey could. They were in a position to get reliable data, as they had the benefit of the Tlmaru eastern extension, which stood the test of the eastern ocean, to guide tliein, and knew the cost per foot of the rubble wall, which was tie system Opunake had decided on At other places, including Tlmaru, New .Plymouth and Napier, they had adopted an expensive block system. These places were nearly washed away, and they had to revert to the old system nf rubble to protect them With £53,000 they would be able lo construct MO feet of breakwater and a solid concrete wharf, which would enable trem to berth ships on both sides In all weathers up to 15ft. This would accommodate boats of a fairly large size. He noticed that the corlnna and several good-sized coastal vessels drew from 12 to 14 feet, and they would be able to negotiate the port without delay. They should think it worth while to make an effort to raise the loan in the district, especially as the board had decided to issue debentures on very easy terms, viz £IOO each, payable in quarterly Instilments of £lO, running over 2',! years, interest to he payable on the £lO for the time It was deposited. There was, of course, the alternative that the debentures could be taken up and paid right out, Interest being paid halfyearly through any branch of the bank at 5% per cent. He pointed'out how the amendment to the Income Tax had put local bodies In a better position than other concerns, and the fact that the big institutions were. The noslton was that nil local bodies' loans showed how hard finances were. The posiion was that all all local bodies lad to collect 2s fid Income tax on all interest accruing to clients, this"covering the full liability, but If the client was a small man, and only liable to pay, is In the £ income tax, he got a refund of Is Gd from the Department, whereas the man who was liable to pay more than 2s Od in the £, by investing in debentures saved money. It was he said, rather surprising to And legislation passed like that when investors In the Government loan had to pay full income tax Not only would investors in the harbor loan earn good interest, but they would earn the benefits rhat would be derived from the district having a harbor, the principal ones being the saving in the cost of their goods etc., and tie fact that they could get manures landed at less cost. This would be of peat benefit, as increased production was absolutely essential If the financial position was to improve, and In this connection he pointed out that whereas our exports had been two or three .millions more than our imports, during the Inst nine months the reverse had been the case, thus making finance hard. He stressed the need for careful economy. People were not economical enough, and were inclined to go in for things 'hey could do without. LOCAL FINANCE HELP. Their only hope at tiie present time to obtain money for the harbor loan was by local subscription, and the point was what could they give? He did not want anyone >o make a public show of tie amount he was prepared to take up at that meeting, but '!<> would like- them to communicate with the itcretnry (Mr. O'Urten), or Mr. Brunette, a .umber of the board, who intended as far j :s possible to make 'a publjc canvass. The card had been in existence for seven years, ] .'.ad not one member had drawn expenses, tare when sent to r Wellington or elsewhere! ;hey had studied economy, and had given Iheir time and efforts In fostering a scheme Dint would be of lasting benefit to the district.

Messrs. 11. P. Malcolm, A. E. Brunette, and 'it. O'Brien, members (if the. board also spoke, the latter paying a tribute to the lunner In which Mr, Hughson had spent time and money 'ln working for. the district, overcoming every difficulty with which lip had hcen faced, and some of them were very serious. The Board had done its uthmsl to place the scheme on a solid foundation. The district would soon require coal, as the wood was becomint' exhausted, and unless they had a harbor the coal would be borne over the county roads, which would be cut up. necessitating increased rates far maintenance. He admitted that a harbor rate would have to he struck for a year or two, but tho ratepayers would gain twofold by saving in the carriage of ttelr goods, also In the county rate. Moreover, with a harbor they would save two toll-gates. Opunake was nearer to Westport than either Tatea or New Plymouth, and so coal could be carried there much cheaper. also pointed out that Opunake had 13ft' of water at low tide, whereas I'atea, which coped with all the produce, etc., from I'll ama to Maxwelltown only had 4ft of water at their wharf at low tide, tying their boats up to hold them perpendicular until the tide came in. In reply to Mr. T. S. Hlckey, the chairman stated that they hud borrowing powers until next. September, after which thev would have to take a fresh poll. Legal' advice would I'ave to he taken on the point as to whether. If they borrowed £lO,llOO before September, a fresh poll would be required before they could borrow further. The Board wanted to take the puKrc firm their conndeuce, as tliey wanted the guidance of the public. It was quite possible, when the board felt the pulse of the public, that it mi"tt decide to start the works on a lower bail's than £30,000. CAMPAWX TO RAISE MOXEV. The chairman was about to thank Mr. Hughson, thus closing tho meeting when Mr A. H. Moore, who has been an ardent advocate for years, and compiled the figures regarding imports, etc, moved that the board place a prospectus before tire public at once ami conduct an energetic campaign to raise the money. He held that the mectiii" was unnecessary, as the board had a nuuulate from the ratepayers to proceed. He urged the boaru to go for the whole £55,000 and not be satisfied with £30,000. The amount coming to the district last year through d,eques was £130,01)1), and the probability was tint it ,would be increased by over £:;snou .Mr. C. A. Trotter seconded. Mr. Mickey, while appreciating the board's difficulties i.t tho way of nuance, agreed that there was no lime like the present If tho board would give a bold lead in ihe mlltu . r now, ho believed they would get at Ifisl £30,000.

Mr OBrlcn said thai the Board Intended waiting on the dairy factory directors between Warea and ltlverdale, and place the figures before them.

Some discussion took place as to tie position of tile brokers if the loan was to bo raised locally, but Mr. Hughson said that this matter would he arranged by the board at a special meeting on Monday. The resolution was carried.

lir. Hickey moved thai, a vote of (hanks be accorded Mr. Hughson for his able address, and also the members of the Harbor Hoard for the work they had done, and for which ihey dTcrved the thanks of every one in the district. He was sorry that th» farmers did