HARBOUR BOARD FINANCES

Press, Volume LXXXV, Issue 25903, 8 September 1949, Page 3

HARBOUR BOARD FINANCES

LOSS OF £23,905 IN 1947 1948 CONCERN EXPRESSED SY MEMBERS “The plain fact remains that we cannot **et along on our present uneconomic rates of charges, which have been in operation since befoi’C the war,” said the secretary (Mr A. L. Burk) at a special meeting cf the Lvttelton Harbour Board held yesterday to consider the adoption of the 1947-48 accounts, which showed a loss of £23,905. The board would have to seek an overall increase in charges, said Mr Burk. He was preparing a report, and hoped to have it ready for the next meeting. “It will not make very pleasant reading,” he said. The accounts were adopted. Mr Burk presented a memorandum stating that the accounts for the 194748 year had been certified correct, subject to two exceptions, which were as follows: — (1) The board's overdraft exceeded the limit imposed by section 2 <c) of the Local Bodies Finance Act. 1921-22. (2) The board had failed to comply with the requirements of the Local Bodies Finance Act in that the liabilities at the end of the year were not covered by cash assets and outstanding revenue. “Exception No. 1 draws attention to the fact that the bank overdraft is in excess of the revenue recoverable at the balance date. Exception No. 2 states that liabilities at the end ot the year were not covered by cash assets and outstanding revenue. The tag merely emphasises what we are already aware of—that our present charges do not produce sufficient revenue to meet expenditure. The audit office has been advised of steps being taken to rectify the position,” said Mr Burk. “A Hard Fight” “I have been concerned it the trend of the board's finances, although I am not unduly alarmed.” said Mr Burk. “If we get the support of the board for an overall increase in charges, as has been indicated, we will have a hard fight. There will be the Price Tribunal, the shipping companies, and the farmers’ organisation, all of which fought the Wellington Harbour Beard's increases last year.” Permission had been obtained from the Price Tribunal to make extra charges for overtime, but this amounted to only a few thousand pounds a year, said the chairman (Mr C. W. Tyler). A bill on which he gave evidence recently before the Local Bills Committee provided for an extra charge of 3d a ton on all cargo loaded and discharged. “We will apply in the near future for an increase in all harbour dues. We have had no increases for years,” he said. The revenue account for the peril d October 1. 1948. to August 31. 1949, showed an excess of expenditure over income of £53.956 2s 9d, said Mr Burk. The year had been a record at Lyttelton. with a cargo tonnage totalling 905.000.

“It seems that we have drifted for a very long time, and that something might have been done before.” said Mr J. Halligan. “I hope it will not be long before something definite is done, or we will be like the Tramway Board.” He suggested that the matter should be referred to the heads of th? board’s departments, to see. what could be done to increase revenue and curtail expenditure. “Opportune Time for Report”

“It is absolutely necessary that improvements and maintenance should go on,” said Mr W. S. Mac Gibbon. “I hope that board members will not look at these accounts and say that we will have to cut down on improvements. Now is an opportune time for us to prepare a very full report. We have evidence that we are operating at a substantial loss, and we have a good argument to the Price Tribunal that we cannot go on without cutting into our slender reserves,” he said. People outside the board thought it had very substantial reserves, but this was not so, said Mr Mac Gibbon.

“We have not got reserves to play about with. We cannot live on our fat,” he said.

The Mayor of Ashburton (Mr E. C. Bathurst) said that the board should take some action to get more ships to Lyttelton.

“Two thirds of the population of New Zealand is in the North Island. Unless we can increase the population and consuming capacity in the South Island, we will not get more shipping,” said Mr Mac Gibbon. “I think wc can do a lot. though. The present methods of transhipment are very uneconomic to the South Island.” He heard an instance on Tuesday of a factory awaiting materials, which were then in Wellington, and would be taken to Auckland before arriving at Lyttelton, he said. At the ordinary monthly meeting of the board the statement of finance and trade showed a debit of £31,667 13s Id in the Harbour Fund at the end of August.