THE PORT.

Taranaki Daily News, 21 March 1921, Page 6

THE PORT.

HARBOR BOARD’S FINANCES. SUGGESTED SOURCE OF REVENUE. HELP FROM DAIRY COMPANIES. The question of finance was discussed at a meeting of the New Plymouth Harbor Board on Friday. It was that all available loan money''had been practically exhausted and that there was no prospect of getting any for a considerable time. The chairman (Mr. Newton King) remarked that the financial position was about as bad as it could be. Mr. C. A. Wilkinson said that apparently the board was at the end of its financial resources unless some other means of raising money was devised. Mr. J. Connett said the dairy companies had shown what they could do when they were up against it for storage during the war and seeing that the development of the harbor was of such vital importance to the industry it was just probable that dairy factory companies would come to the assistance of the Harbor Board, even though that assistance might only be of a temporary nature. He had given a great deal of thought to the question and was- of opinion that the great financial stringency which was being experienced at the present time affected the dairy companies less than anybody. Butter was still selling at a good price, and although cheese was down it was still returning a good figure. Therefore, dairy companies were not in a particularly bad way. He had looked at the matter from the point of view of providing a year’s revenue for the board, in other words approximately £40,000. The quantity of butter and cheese which passed through the Moturoa works for the 1920 season equalled roughly 6000 tons of butter-fat, and if the dairy companies would advance to the board £5 per ton on these figures it would mean £30,000. He wished to make it perfectly clear that his idea was that this assistance should only be of a temporary nature and that it should be repaid to the dairy companies as soon as ever the board was able to raise its loan money. The amount might seem a large one, but if they came to analyse the position they would find it did not amount to so very much—about %d per lb of butter-fat for the year. It would no doubt suit the board to have the amount paid over in monthly instalments and these would be very small distributed over all 'the factories sending their stuff away through Moturoa. For instance, a factory manufacturing 100 tons of butter would loan to the board £430, or £35 16s 8d per month; 200 tons of butter £B6O. or £7l 13s 4d per month; 300 tons £1290, or £97 10s per month; 400 tons £1720, or £143 6s Sd per month. A factory manufacturing 100 tons of cheese would advance under the scheme £lB7 10s, or £l5 12s 6d per month; 500 tons £937 10s, or £7B 2s 6d per month; 1000 tons £1875, or £156 ss; and so on. He did not think it would hinder the finance of the dairy companies. Bonds coulu be given as security and the understanding could be that these would be purchased by the board immediately loan money was available There would be a loss in interest to the dairy companies by the difference between the market rate of 7 per cent and the 5% per cent tffe limit the board was empowered to pay, but he thought it would be possible to overcome this, and in any case it would not be of any great consequence. The difference on £ 1000 would represent £ 15, but seeing that the money was beiijg advanced in monthly instalments it would only mean half that amount for the first year. Possibly the Moturoa Freezing Works and also the Smart Road Meat Works would be able to do something on similar lines, but so far as the dairy companies were concerned they had everything to gain by seeing that the development of the harbor was pushed on with all possible speed, as the saving to them in freight when their produce was all shipped direct from New Plymouth instead of as at present being sent to Wellington by coastal steamer and being transhipped would be very considerable. Mr. Wilkinson congratulated Mr. Connett on the thought he had given to the matter, but said he could not look upon the scheme with any degree of favor, because it was going cap in hand to producers who-might have to face bad times and who would therefore be in need of all their money. At the same time the scheme was one which the board should ifot regard lightly and each member should endeavor to devise some means of meeting the position. Continuing, Mr. Wilkinson said the board could levy charges on goods passing in and out of the port, in other words could levy a' harbor improvement rate, and this seemed to him to be ode-of the courses they should follow. If they levied Is extra per ton it would mean an additional revenue approximately of £5500 a year, if they leyied Is 6d £8250, and 2s (the amount’ he would like to see levied) would mean an extra income of £ll,OOO. Five shillings per ton wharfage would not be too much for importers and exporters to pay if they were getting the harbor developed. Thi dairy companies would contribute largely to the revenue by this means. Whangarei charged a harbor improvement rate, Wellington levied Is 6d for the same purpose, and it could be done here. The onlj way to face the position was to levy a charge on the goods and let the people who used the port pay for it. They had to do so elsewhere, and they should be prepared to do so here. Five shillings wharfage was' no more than was being paid in Wellington to-day and he did not see why the charges here should be any less than they were at Wellington. Tn addition at Wellington there were very heavv charges for storage. The chairman said this question had not been lost of for revenue purposes, but so fat as giving the required money for loan expenditure was concerned it was useless. Mr. Connett’s scheme, continued Mr. King, was a novel one. but the difficulty would be that the board could not guarantee to repurchase the bonds, although they might be able to arrange with some loaning body to take them over when the money was available So far as the board was concerned no guarantee could be given. Mr. C. E. Bellringer said the question of a Imrbor improvement rate had been informally discussed, but the revenue that could be reasonably derived from this source was quite inadequate in so far as loan work was concerned. Mf Maxwell, whiM complimenting Mr. Connett on having brought down his scheme, said he was afraid it would not bo acceptable to the dairy companies. There were too manv dimculth* VlSr

Mr. C. H. Burgess stressed the point that the board was not in a position to say to the dairy companies, even if the scheme was agreeable to them, when they could be paid back. Mr, Wilkinson questioned whether the dairy companies had power to advance money in this way under the articles of association. Mr. D. J. Hughes did not favor the scheme and said that probably the board could issue debentures in similar manner to a number of Taranaki dairy companies During further discussion it was pointed out that under Mr. Connett’sscheme separate accounts would have to be kept for each individual supplier showing his proportion of the advance, and interest would have to be worked out in like manner. Mr. Bellringer said Mr. Connett’s scheme might be practicable and that the companies might be perfectly willing to loan money to the board, but the board could not say when the money would be refunded to the companies. All the board could do was to issue its bonds at 5| per cent interest, the maximum allowed, and those taking them up would have to take the chance of anyone purchasing them inside the period of 30 years for which they Were issued. Mr. Connett said that in that ease he did “not think the companies would entertain the proposal. Mr. J. said he did not think the scheme would meet with the approval of the* dairy companies. Personally, he favored Mr. Wilkinson’s idea and said thia would enable the board to carry on in a modified way. Eventually the whole question of finance was held over for further consideration at next meeting.