THE REASON WHY

Auckland Star, Volume LXXIII, Issue 255, 28 October 1942, Page 4

THE REASON WHY

HARBOUR BOARD ACTION

LiIBKKTY LOAN' ( ()\THIBUTIO\

At a meeting of the Auckland Harbour Hoard in committee a week ago it was decided to adopt a report of the finance committee recommending, subject to validating legislation, that the board should arrange for bank or other financial accommodation for a loan of £100,000, this amount to he invested in the second libel ty loan. It was also recommended: "That with a view to the early liquidation of the loan liability thus created securities held by the board in its reserve funds be realised at suitable occasion, such realisation to be left in the hands of the chairman of the finance committee and the treasurer."

When the committee's report came up for confirmation at yesterday's open meeting of the board, the chairman of the finance committee, Mr .1. 11. Frater. moved that no action be taken as it had been found after inquiry that ihe board's proposal could not be carried out. He thought it better to defer making a contribution in the meantime in order that, a substantial sum might be applied for when the next loan was launched by the Government. The board should make preparations to gather its resources in the interval with that end in view.

Mr. E. J. Phelan said it was a pity that, something could not be done. The report could be adopted with the proviso to the effect that the contribution should be made subject to the board's action being legalised.

The chairman, Mr. Hendry Luke, said the board had taken every step possible, but it was bound by law. and the contemplated action could not be carried out. It had been the unanimous desire of members to support the loan, but the boards proposals could not be sanctioned. The way could be cleared in future months for the board to make a worthy contribution when the next loan came on the market. The Government, did not seem to be in favour of the course suggested by the board and it. was hopeless to go further with the matter.

The suggestion was made hv Messrs. \V. !•". MeCallum, Phelan and others that the motion should he withdrawn and the report referred back to the board in committee for further discussion.

Mr. Frater agreed with this proposal. He said members might wish to be associated with the loan even if the sum subscribed was comparatively small. The report was rcferred_back as suggested.