HARBOUR TRUST.

Daily Southern Cross, Volume XXII, Issue 2677, 14 February 1866, Page 5

HARBOUR TRUST.

Message No. 19. The Superintendent invites the Council to take into iheir consideration the subject of the harbour of Auckland. The harbour lands are invested in the Superintendent by a Crown grant under an Act of the General Assembly, the Public. .Reserves Act, 1854. The management of this property is now vested in the Superintendent, with the advice of his Executive Council, and the Provincial Legislature can authorise sales, mortgages, and leases to be made, and also, by Act, regulate the management and administration. Very soon after the foundation of Auckland, and frequently from time to time since, plans have been proposed to afford accommodation to shipping, and especial attention has been paid to the erection of wharves. From the commencement of the expenditure to the present time, very large sums have been laid out on harbour improvements. It is, however, unnecessary for the present purposes to go into any detail as to the past expenditure prior to the Ist April, 1863, as the amount which is to be charged against the Harbour Trust up to that day was fixed by the Harbour Debt Act, 1863, at £12,000, and this sum is made payable to the Provincial Treasury, with interest from that date, after the rate of 6 per cent per annum, but no sinking fund is provided for. By another Act of the Provincial Council, the Empowering Act, 1864, a sum of £30,00 u is authorised to be advanced to the Harbour Trust, at 6 per cent, interest, with a sinking fund of 3 per cent. This sum, uuder an Act of the General Assembly, the Auckland ti arbour Debenture Act, 1860, was paid into the Supreme Court in order to release the harbour lauds from a debt of £25,000 raised through the Oriental Bank by debentures, charged ©n the harbour reserves. The object of this transaction was to release the harbour lands, so as to be able to deal with them by sale, mortgage, or lease, which could not be done so long as they were the subject of a security to the debenture-holders. These debentures are not payable till 1876, aud the £30,000 is invested at S per cent, under the authority of the Supreme Court, in order to pay off the £25,000 when it becomes due. The interest in the meantime is paid into the Provincial Treasury, less the charge for collection, and placed to the credit of the Harbour Trust. The principal sum, therefore, now due from the Harbour Trust to the province is £72,000, involving an annual payment for interest and sinking fund of £6,120. Taking then the Ist April, 1863, as the date of the commencement of the account, and making a debtor and creditor account of the receipts *ad expenditure to the Ist January, 1866, there was due to the Harbour Trust by the province ou that day the sum of £590 9s. 4d. on this account. The account No. 1, transmitted herewith, shows the items by which this balance has been brought out. Account No. 2 shows the expenditure to be charged against the £30,000 authorised by the Harbour Appropriation Act, 1864, to be advanced out of the £500,000 loan for the purpose of extending and improving the wharf or other works, in or connected with the harbour of Auckland. On the Ist January last there was out of this £30,000 a balance on hand of £1,244 15s. 3d., but on the other side there were liabilities on the contracts for works then in progress of £12,000, leaviug a deficiency of £10,755 4a. 9d. Account No. 3 shows the liabilities on the 3rd of Deoember, 1865. This state of the account appears to have arisen from a misunderhtanding. After the appropriation of the second £30,000, new works were entered on, involving nearly the whole of that sum, and an expenditure of a considerable amount increased before that appropriation was unprovided for. Hence the liability that now exists for which no provision has been made. When, however, the works contracted for by these contracts are finished, there will remain but one new work necessary to complete all that the Superintendent thinks will be required in Commercial Bay for many years to come. The breakwater will be useless as a wharf unless the road from it to Custom-house-street is made. The estimated cost is under £2,000, and there is no doubt but the fees which can be levied for the use of it will much more than pay the interest and sinking fund on the cost. The Superintendent would have felt no hesitation in proposing the completion of the work, and with that view he has directed plans and estimates to be prepared, but he feels great difficulty in recommending, in the present uncertain state of affairs, the expenditure of any money for any purpose not absolutely required. Some provision, however, must be made to pay for the works already contracted for, and partly executed ; and it will be for the Council to consider whether under the circumstances it is not better to complete the works suggested, and thus be enabled to raise a revenue, than leave them in an unfinished state and sacrifice the income; and if the breakwater were connected with Custom-house-street, it might be made the place of landing for heavy good*, and thus £aye much of the wear and tear of the Queenstreet Wharf, which now entails so large an expenditure in repairs. The only fund available is part of the unappropriated balance of £21,000 authorised by the Auckland Loan Act, 1863. The Superintendent proposes to consolidate the Harbour Acts and Debt ; at all events an additional sum of about £11,000

musG be provided, and this will make the debt to the province £83,000. It wonM probably b better to increase the amount by £2,000 for Custom-house-street Road, and thus make the total £85,000 upon which sum the interest and sinking fund should be paid. The income from the harbour will cover this and all other expenditure to be charged against it, and leave a sum to be expended annually in repairs. An account showing the income and expenditure for 1865 is transmitted hprewith, showing receipts to the amount of £7,923 6s. 3d., and expenditure, nob including repahs, to the amount of £6,099 19s. The bupeiiuteudent is of opinion that there is no reason to expect any serious falling off of income. With, regard to the amount of interest and sinking fund, it appears to the Superintendent that some alteration should be made. At present, no sinking fund is charged in respect of the £12,000, at which amount the debt was fixed on the Ist April, 1863 ; and a sinking fund of £3 per cent, is paid in respect of th 9 two sums of £30,000 each, since appropriated. It appears to the Superintendent thaC a sinking fund for the £12,000 should be provided, and the siuking fund made 2 per cent., instead of 3 per cent., og the whole debt, whatever it may be fixed at. The Auckland Loan Act, 1863, provides for the repayment of the principal in 33 years, by means of a sinking fund of £2 per cent. This would be correct enough if the money were invested in the English funds, and produced about 3£ per cent, per annum; but provision is made in the Auckland Loau Act to invest in colonial securities, which will produce from 6 to 10 percent., so that the principal will accumulate in from 19 to 24 years, according to the rate obtained. There does not appear, therefore, to be any reasonable ground for taking 3 per cent, from the harbour trust, instead of 2 per cent., as the latter sum will at the lowest rate of interest, 6 per cent., secure the repayment of the principal in 24 years. If the Council concur with the Superintendent in his views, he will send down a bill in order to carry them out. Fred. Whitaker, Superintendent. Superintendent's Office, Atxckland, February 13, 1866.