IN TROUBLE.

Auckland Star, Volume LXX, Issue 90, 18 April 1939, Page 10

IN TROUBLE.

HARBOUR BOARD.

CANNOT RAISE MONEY

INTEREST RATE TOO LOW.

EXPORT WHABF INVOLVED. Owing to the inability of the Auckland Harbour Board to obtain money for capital works at the rate of interest prescribed by the Government—3* per CC nt—the chairman of the board, Mr. W. B. Darlow, is recommending to this afternoon's meeting of the board that work be stopped on the construction of the new export wharf on the eastern reclamation, adjoining the building now being constructed for the Auckland Farmers' Freezing Company, Ltd. This information wae given by Mr. Darlow to a representative of the '"Auckland Star" when he wae questioned thfe morning ae to the progress that had been made with the construction of the wharf. "I am deeply concerned with the present position," he said. "It means that if the board adopte my recommendation 50 men will have to be put off next Friday. At the present time there arc between 150 and 200 men on the job and if we find that there is no prospect of the money being made available from the Government or from any other source it will mean that before long the whole of the men will have to be dispensed with and the construction abandoned."

No Accommodation. Looking out from hie office window towards the Princes Wharf, Mr. Darlow pointed to the Maliana, which had taken the Aorangi's berth. "That ship wae waiting for a berth since yesterday," he said. "Wβ have had congestion for eome time and in eome instances boats have had to wait for days to get berthage. The port wae never before in such need of extra accommodation for the ehipe trading

here. It does not take much imagination to come to the conclusion that we are definitely short of berthage accommodation. That wae the reaeon for putting in hand the construction of an export wharf on the eastern reclamation.

"The Auckland Farmer* , Freezing Company is building ite stores and they should be ready for business in I*2 months. It was the idea of the board to have the export work finished simultaneously. The estimated cost of the wharf is in the vicinity of £500,000 and up to date we have expended approximately £100,000, but the balance of the money to complete the contract fe not in sight at the rate of interest permitted by the Local Government Loans Board, 3J per cent.

Awkward Positioh. "We have been to the Government," said Mr. Darlow in reply to a further question. '-We have frankly told the Minister of Finance, the Hon. W. Xasb, that we are in an awkward position and I that for the first time in the history of the board we have been unable to raise sufficient money for development purposes due to the low rate of interest insisted upon by his Government." "What wae the Minister's reaction to that statement ?" Mr. Darlow was asked. "Mr. Xash promised to give the board a definite reply ae to what the Government would do in the matter during the first week in the present month, but he has not carried out his promise. That puts me in the position of recommending the board to etop work on the export wharf. There is no alternative but to close down the construction work and for a start put off 50 men immediately."

Serious for Men. "I am compelled to make a report and recommendation to the board," said Mr. Darlow in conclusion. "I know what this involves and how drastic the action is. Members of the board know as well as I do how serious a etep it is I am recommending. It is a most disastrous position for the men concerned. Most of them have wives and families, and for them to be thrown on the labour market at a few days' notice has caused me much thought. The board will have no option, however, ae without money the board cannot pay its outgoings." Mr. Darlow said it would be better for the board to abandon the work in its present stage than to go on until it had spent, eay, £230,000, and then have to close down owing to being unable to get the balance of what was required to complete the contract.

•My heart goes out to the workers concerned," he added. "They rely on a weekly wage and the closing down of the wharf construction will be most serious for every one of them."