Port of Timaru faces deficit

Press, 5 December 1981, Page 11

Port of Timaru faces deficit

Rising costs could mean a deficit of more than $500,000 this year for the Timaru Harbour Board. “The outlook in the immediate future gives little cause for optimism, and the estimates for 1981-82 suggest we will have to draw on our reserves to assist the current operation.” said the board’s chairman. Mr B. J. Petrie. According to a report by the general manager, Mr B. E. C. Strathern, the estimated deficit is $531,734. The board expects to spend $5,050,325, but the income is estimated at $4,930,380. from which deductions for capital expenditure and transfers to loan repayment and port developmentreserves must be made. The estimated deficit is in spite of an expected increase in cargo handling from 396,584 tonnes last year to 424,200 tonnes: and this year’s deficit will be the second in a row for the board. In an analysis of the accounts for the year ended September 1981, Mr Strathern said that income had been about $500,000 less than estimated, and spending had been almost $200,000 more than budgeted for. The drop in income for the 1980-81 year reflected the

reduction in cargo handled, he said. Expenditure for 1981-82 will include nearly $2 million for the board’s dredge, shipping charges of $370,050, and administration charges of $724,892. The dredge is expected to return $1.2 million, cargo services will return $298,400, and bulk handling will return $549,500. “The question as to how long we can cope with this sort of operating base is one that causes us concern,” Mr Petrie said. Other ports in New Zea-

land had also suffered during the last year or so. “When the country’s economy shows an upturn we can expect our trade position to improve, but we cannot sit back and wait for this to happen. We have to keep up with our trade promotion activities and planning for the future." The board had to push the North Mole berthage development, the conversion of the dredge, and the reclamation of Evans Bay. Mr Petrie said. Decisions by the board would need fine investigation and courage.