Shipping News

Press, 8 June 1979, Page 11

Shipping News

Financial tide turning for harbour board?

The Lyttelton Harbour Board is believed to be riding on a wave of financial buoyancy at present, but the possibility of increased charges from October this year cannot he ruled Out. In fact the board’s financial position is precarious; it has a total indebtedness of about S22M, and is vulnerable to fluctuating trading patterns. In spite of this, the chairman of the finance committee (Mr A. A. Macfarlane) has said several times that he is opposed to increased charges. His opposition, which is also shared by several other board members, Is apparently based on the need to maintain the port’s competitiveness. While the monthly meetings of the finance' committee so far this year have been satisfactory, the impact of increased electricity charges has not yet been felt. The satisfaction stems from sailing close to budget forecasts and a recent improvement in trading, which has placed the board in the Hack. A decline in trading over only two mouths could cause a complete reversal in the board’s fortunes and a consequent curtailment of its active works programme. The board’s 1978-79 budget was prepared on the basis of a realistic volume of cargo likely to be handled, and trading over the first seven months of the present year has been much in line with the estimates. Trading is about 6 per cent better than last year, and several costs have been held by constant pruning. At the same time, some of the cost saving has been caused by deferring work. Container terminal results have been good this year in spite of an expected decline late last year. The board constantly appropriates various moneys to reserve accounts, but the actual amounts are really no more than

depreciation’s being written off in accordance with harbourboard accounting. The depreciation is written off and then written back on the credit side. For the seven months so far this year the figure is 8554,000. The appropriation accounts include provision for crane renewal, floating plant replacement, and loan servicing. When the board last Increased its charges it had transferred 8659,000 to accumulated surpluses and this total may not be reached this year. While the board’s trading this year has been better than budget forecasts memories still remain of the bad trading years of 1977 and 1978. These years caused serious inroads into the board’s reserve funds, and last year alone almost 8250,000 was taken from accumulated surpluses to tide the board over. The year before the amount was 8406,000. ARRIVALS Kotuku (7 a.m.), 16,211, Dunedin, Capt. K. J. Swan (U.S.S.). DEPARTURES Kotuku (8 p.m.), 16,221, Nelson (U.S.S.). EXPECTED ARRIVALS Kuaka, Marsden Point, today. Strathmuir, Wellington, today. Wild Gannet, Bluff, today. H.M.N.Z.S. Taranaki, from sea, June 9. Jagrekha. Napier, June 9. Union Hobart. Wellington, June 10. Coastal Trader, Auckland, June 11. Lindfield. from sea, June 11. PROJECTED DEPARTURES Kuaka, Timaru. June 9. Plod, Napier, today. Strathmuir, Newcastle, June 9. Kuaka. Timaru, June 9. Coastal Trader, Dunedin, June 11. Union Hobart. Dunedin. June 12. VESSELS IN PORT Plod. Cashin Quay, No. 2. Holmdale, No. 7 East.