HARBOUR BRIDGE.

Auckland Star, Volume LXVI, Issue 55, 6 March 1935, Page 9

HARBOUR BRIDGE.

£400,000 WANTED.

BY AUCKLAND DEPUTATION.

REQUEST MADE TO MINISTER,

(By Telegraph.—Parliamentary Reporter.)

WELLINGTON, this day.

A subsidy of £400,000 from the Unemployment Board and Main Highways Board to ensure the construction of the Auckland Harbour Bridge was applied for by a deputation of North Shore Mayors and members of the Waitemata County Council which waited on the Minister of Employment, Sir Alexander Young, to-day. It was stated on behalf of the deputation that Mr. Felton, Auckland accountant, New Zealand representative for Mr. F. W. Strack, who was negotiating finance in London for the Auckland Harbour Bridge Company, had received advice from Mr. Strack that provided such subsidies were available ami invested to compound as security for a debenture issue the finance required to construct the bridge was practically assured. The intimation was the outcome of a cable sent to London by Mr. Felton, when it was that difficulty might be encountered in the endeavour to have the company's charter altered to permit local bodies to guarantee interest and sinking fund on loan as requested by the London financiers. It was 'estimated by the contractors that £003,000 would be expended in labour costs in the construction of the bridge approaches and causeways, and that at least 1000 men would be employed for three years on the work. As the men would be drawn from the ranks of the unemployed at standard rates of pay the Unemployment Board's funds would be relieved to the extent! of £93,000 per annum, or a total sum in three years of £230,000. To supplement this saving must be added the amount contributed by wages taxation on £(103,000, which amounted to £27,625, resulting in a direct saving to the board's;funds of £27,625, plus £280,800, equalling £308,425. Causeways a Public Highway. The cost' of constructing causeways from Birkenhead to Northcote and from Stanley Point to Northcote, via Bayswater, was estimated at £150,000, and as the company's charter did not empower it to impose a toll charge on the causeways those structures must become a free public highway at the cost of the company's fundi?. It was stated also that as the subsidies would be set aside to accumulate at compound interest as specific security for the debenture capital raised to finance the construction of the bridge, it was reasonable to suppose that when revenue receipts from tolls reached that stage where the sinking fund set aside each year was sufficient to provide' for the repayment of capital, or in the event of the position arising that on the expiry date for the liquidation of the debenture issue, the company's own I funds were sufficient for this purpose, ■ the money so advanced .by the Unemployment Board could then, if required, be repaid together with any accumulation of interest. Promise of £100,000? According to Mr. Julius Hogbei), a director of the company, capital was ready for the construction of the bridge and the contracts were ready for signature. The company required to be able to assure the London financiers that £400,000 was available ill New Zealand by way of guarantee. They understood the Unemployment Board had promised .a subsidy of £100,000.

The Minister: Let us clear that up at once. That is not the position. There lius been a good deal of misrepresentation about this, and a sum of £100,000 has been "handed out" in Auckland. There was no promise of a subsidy of £100,000 from the board. What" the board did was to agree tentatively to grant a subsidy on the wages paid to men in Xew Zealand engaged on the fabrication of steel up to £100,000. It is as well that that point be cleared up now. Mr. Hogben said the contract price was £1,19."),000, but the maximum estimate, including cost of causeways, was £1,500,000, winch was the figure on which all the company's estimates had been based. Sir Alexander Young asked whether it was proposed to employ only New Zealand labour on general work and not import men from Australia. We don't want to encourage importations from oversea," he said. Mr. Hogbcn said that condition could be made one of the terms on which the Government granted subsidies. The Minister: Assuming a subsidy u; given, will that see you through your liabilities without calling upon local bodies for assistance? Mr. Hogbcn: Yes.