Harbour Board’s assets drop

Press, 1 July 1988, Page 1

Harbour Board’s assets drop

By

YVONNE MULDER

A new valuation assesses the Lyttelton Harbour Board’s assets at $24 million but its debts at $3l million, industry sources say. The valuation, made in preparation for the transfer of assets to the proposed port company, dramatically reduces the estimated value of the board’s assets. At the end of the last financial year, September, 1987, the board’s fixed assets were assessed at $43.7 million. The

assessment was made on the basis of the opening writtendown value, at cost, less accumulated depreciation. Under the new valuation made in the last two months, the assets are assessed on their income-earning ability. The general manager of the Harbour Board and general manager-designate of the new port company, Mr lan Brokenshire, declined “to confirm or deny” a drop of more than $l9 million in the valuation. He said the Ministry of Transport had been ap-

proached on matters “relating to valuation and the extent of the board’s indebtedness.” The Minister of Transport, Mr Jeffries, had also been approached. The Lyttelton establishment unit, which is setting up the port company, has applied for an extension to today’s deadline for the presentation of a port company plan. It is believed other harbour boards, including Port Taranaki, at New Plymouth, are facing a similar problem of

significantly higher debts than assets. A spokesman for the Minister of Transport said Mr Jeffries could not speculate on what action he might take until the port company plans had been received, or until he had been approached by the boards. ‘ < •••• He would not comment on suggestions that the Government might take over some of the harbour boards’ debts to ensure that the port companies began life as viable commercial units.