SOUND FINANCIAL POSITION

Press, Volume LXX, Issue 21084, 8 February 1934, Page 13

SOUND FINANCIAL POSITION

LYTTELTON HARBOUR BOARD

CHAIRMAN'S ANNUAL REPORT

A comprehensive review of the operations of the Lyttelton Harbour Board and its satisfactory financial position were the main subjects dealt with in the report of the chairman (Mr W. G. Gallagher), which was submitted to the fifty-seventh annual meeting of the Lyttelton Harbour Board yesterday. 'Dealing with finance, Mr Gallagher said:—

The secretary's report covering the balance-sheet and accounts shows that notwithstanding the prevailing depression the board is in a strong financial position, and that the last year's figures for both trade and finance may reasonably be taken to suggest that the Dominion lias at last rounded the corner, and is on the way to that recovery and restoration of confidence which is so necessary to the happiness of the people, and our healthy economic existence. The board's realisable assets in cash and invested funds have increased by £10,7G3 as compared with the year 1932. after having paid all ordinary working and maintenance expenses, appropriations to special funds, interest on loans, contributions to sinking funds, and expenses incidental to the redemption of our £150,000 loan and the flotation of a redemption loan of £136,000; and also after having paid for repairs and renewals (both ordinary and special) to a sum of £12,617 and having paid away £7948 in capital expenditure on new works, etc. It is satisfactory to note that the ordinary receipts for the year amounted to £82,985 fomitting shillings and pence) as compared with £80,480 for the year 1932, and that the revenue for the year amounts to £83,892 as compared with £78,421 for the year ended September 30, 1932. The payments out of cash account for the year amounted to £103,214 as compared with £86,145 for 1932. and the expenditure belonging to the year amounted to £59,461, as compared with £40,095 in 1932. Again it is satisfactory to be able to record that our special renewal fund, special lire- insurance fund, and special accident insurance fund, have each increased, to an aggregate of £8373, and our sinking funds Nos. 4 and 5, for our £85,900 loan and the £136,000 loan respectively, already amount to nearly £IO,OOO The excess of assets over liabilities for the last year amounts to £912,522, as compared with £899,913 for 1932, which represents an increase of some £12.609. Loans and Finance. It should be reassuring to those who hold debentures in the board's loans to note that the total net credits at September 30 in cash and invested funds amounted to £236,506, against which the board's total liability is only £271.675. and that the board's loans mature at such dates as, in the board's opinion, have made it unnecessary for the board to avail itself of the recently-passed legislation authorising loan conversion. As an alternative to conversion the board, in my opinion very wisely, decided that it should keep faith with its debenture holders (so long as there is no hardship upon the payers of dues and charges') by devoting to the augmentation of its sinking funds the savings in loan interest—amounting to £2294 15s per annum. Trade of the Port. The figures given in the various returns of wharfage dues and tonnage passing over the wharves during the last year and for the 10 preceding years show that the port is still obtaining and increasing its fair share of the Dominion's trade. It is good to note that for the year ended September 30, 1933, although the value of our imports increased by £140,8116 notwithstanding the 25 per cent, exchange, there was also an increase of £306,310 in the value of our exports, and that the value of the exports exceeded that of the imports for the port of Lyttelton by £406,443. The Board's Investments. As a sinking fund commissioner of the board. I have come closely into touch with the board's investments, and I should like to bear tribute to the general soundness of the investments of the sinking funds, and, indeed, of the investment of all the board's special funds. Twenty thousand three hundred pounds is invested in Government bonds and stock, £108.720 in Canterbury local body debentures. £29.471 in South Island local body debentures, and £43.000 in North Island local body debentures. a total of £202.095. Dredging. Referring to the maintenance and development of the port, Mr Gallagher said it was pleasing to note that the engineer's annual report showed that the position as regards maintenance and deepening of the dredged portions of the harbour was very satisfactory. During the six years that the system of dredging recommended by the engineer (Mr Fryer) had been in operation, the depth of tha entrance channel had been increased by 3ft 6in. Also, in addition to maintenance of depth in the inner harbour, a considerable improvement had been made in the turning basin outside the entrance between the moles by increasing the area of deep water, and so providing a much easier turning radius for vessels. It is particularly gratifying to note that these results had been accompanied by a substantial reduction in total costs a ton, the figure for this year (2.2 d) being the lowest recorded during the last lb years. These results reflect great credit upon the engineer, and upon those in his department responsible for the work of the board's dredges. Mr Gallagher also paid a tribute to the staff for the work they had done during the year and thanked the members for the assistance they had | given him. He moved that the report be adopted. The motion was seconded by Mr E. J. Howard, M.P., who said that if every other public body in New Zealand was in the same splendid state as the Lvttelton Harbour Board there would be very little worry from the public point of view. The motion was carried. J ji i