OTAGO HARBOR BOARD

Evening Star, Issue 17327, 15 April 1920, Page 9

OTAGO HARBOR BOARD

DISCUSSION! ON FORMING A RATING ABEA. PROPOSAL CARRIED. A special meeting of the Otago Harbor Board was held yesterday afternoon; present Hr H. L. Tap ley (chairman) and Messrs A. Cable, J. M. Dickson, T. H Russed L. Roberts, J. M’Donaid, N. GalScoilay ‘ YVllk:nso?i »- ,J - Loudon, and T. The Chairman introduced the business bj moving, pursuant to notice—“ That in order to enhance the value of the securities the board can offer to investors, and thereby reduce the rata of interest, and further to extend the powers of the board m raising money for the carrying out of important and development 'works, the board forthwitn take steps to secure legislative and other necessary jewels to rate Urn property within the district, tho boundaries of which shall be duly determined 1 ■ . k0 as Otago Harbor disOtago people, those in town and those in the country, had to realise that unless we had an up-to-date harbor the whom of Otago would .suffer. Out of tno board's revenue of £IOO,OOO per annum the interest claimed £40,000, leaving £60,000 per annum with which to carry on the works necessary to keep the harbor efficient. The opposition to the proposal was insular and parochial, and he thought that soars memoers of Parliament really believed in the proposal, but opnosed i‘t because if they did not thev would receive short shrift at the next election. If a rating area were established the board would be able to not only carry on their works but also reduce dues. Tile farmers would gain in that way. Thev now had to be charged the maximum rates on their produce, and the lowering of the rate bv having a wider area would more than counterbalance what they had to pay in the rate. He had taken but a few figures to show by instance farms of represpiita-' tive size what the rate to the farmers would come to. On a farm of 2,154 acres the rateable value of which was £16,745* the rate now proposed would at id be’iGl? 8s Id; at id it would be £8 14s Sd ; and at-l-16d it would be £4 7s 2d. On a farm of 292 acres, rateable value £1.520, the rates would be, under the same headings £1 7s 6d, 13s 9d, and 6s lid. On a farm of 46 acres, rateable value £695. the figures would be 14s 6d. 7s 3d, and 3s 7d. On a_ farm of 131 acres, rateable value £2,245, the rate would be alternatively £2 6s Scl, £1 3s 4d, and 11s Bd. These were not terrifying figures. What were the opponents ‘frightened of? If thev adopted the maximum of in the £ it would bring in a revenue of £26,542' a year—not much for any individual, but a great thing for the whole. The city and the town were jointly concerned, and he would like to see the cry of town v. country eliminated from this question. Not having a rating area was a handicap* to the board when going on the monev market. It meant that they had to pay at least p per cent; more for borrowed monev Loans to the amount of £200,000 fell due next year, and if they had to pay this 5 per cent, extra in rcborrorring it would be a loss of £20,000; if 1 per cent, more it would be £40,000, without accumuinterest. If they sent to the country people . and stated the whole position frankly, showing them the advantages they would gain, he believed they woufd conie to tho same way of thinking ns those who favoied the proposal and help to get the Bill through Parliament.

Mr Wilkinson seconded the motion, being fully convinced' that it was -the proper thing to do. The question had not so far been properly put to the country people. Mr Loudon supported the motion. He could _ understand to a certain extent the opposition of the country folk. They were apprehensive, ho look" it, of unlimited rating and the undertaking of operations "which would not be of benefit to the country districts. He believed that if the proposal were fully explained a good deal of the misconception would rid qf. It should be made plain that the board would use the money to undertake such works as would make Otago Harbor fit to be the first port of arrival and the last port of departure for the largest steamers that came to Xgw Zealand. That meant providing a low-water depth of 40ft at Port Chalmers at an approximate cost of £IOO.OOO. That was what should be aimed at in the meantime. If that were sot out as a specific object he believed that the good sense of the country people would help them, because it would mean something definite and a small rate, and as it would_ bring about a reduction in the dues on things that the farmers needed, such as fertilisers, the money spent nu the rate would go back. He feared that the time had gone by when we could expect the country to agree to rating power to cover past indebtedness. While he wanted Port Chalmers looked after, it would be suicidal to allow our Upper Harbor works to go back. Consumers got the benefit of the vessels coming to Dunedin. He would, however, agitate for a double line of rails between Dunedin and Port Chalmers. Mr Roberts supported the motion, but did not think it would be right to lay down a policy of new works for a new bohrd. If a rating area were formed the country would have representation, and that would mean a new board, who would frame their own policy. Mr Loudon explained that he did not wish to alter the policy of the board. What he thought they should do was to tell the country folk, when setting the cjsg before tliein, that the primary object was to accommo.date the largest ve«ela that traded to New Zealand.

Mr Dickson said he knew quite well the reception the board’s committee would wet in the country. The chairman had made the very best of a very bad case. He had accused the opponents of the proposal with being parochial, but there were none so parochial as the importers of Dunedin had proved to be for the past 40 year’s. What they "wanted was to reduce the charges ori ships and cargoes, arid this for their own ends, sine© the difference went into the_ merchants’ pockets. It was no use telling him tliat a reduction of charges meant a reduction of cost to the consumer of the goods. He knew better. If two merchants brought out two shipments of goods, one discharged at Port Chalmers and the other at Dunedin, did the man "who got his goods landed at Dunedin undersell the other? Hot he. Was there any cutting of prices because goods came to Dunedin? The country people had never bad a say in Harbor Board matters, and it was unfair to ask them to carry part of the burden. He regarded the proposal as 4 move to get, money soent on the Upper Harbor. The Lower" Harbor could be given a depth of 40ft without borrowing any more. He thought the available revenue was £50,000 per annum not £60,000, as staled by the chairman. Tire Chairman ; Yes, I was going to correct that.

Mu Dickson: The’ dredge was kept going out of revenue, and she could continue to be kept going without "borrowing. _ He took it that when the committee went round the country any member of the board would bo allowed to accompany them and take the floor. But he was not more concerned for the count i v people than for the town people. Wl.en the committee started out to educate tW

heathen they should start with Dunedin. When the Dunedin people were told that they could be rated by the Harbor Board up to any amount that might be fixed they would settle it. Though lie believed that the policy of bringing the ships to Dunedin was a wrong one, he would not do or say anything to allow the upper harbor to go_ back from its present condition ; but if we were to have a portwith a depth of 40ft we must now (uia-for a long time to come use our energies in the lower harbor. Ho did not think it necessary to borrow another pound. Ix they spent their £50,000 a year wisely they would in a few years have a firstclass port up to Port Chalmers and channels to Dunedin.

Mr Russell endorsed Mr Dickson’s icmar.es, and said he questioned whether any advantages would accrue from having a rating area. Mr McDonald said he would like the opponents to show exactly how tho board oonld carry on their works without borrowing. Would Mr Dickson undertake that problem ? Ho combated the suggestion that tlie supporters cf the proposal were anxious to get money spent for the benefit of Dunedin, and pointed to the fact that at the board’s tabic 3m had consistently voted for expenditure on the improvement oi Port Chalmers. He was willing now' to.let all the monev from this rating power go to Port Chalmers till it was made a first-class port. He did not want, nor did anyone want, to put more rates on if this could be avoided ; but it would be disloyal to the district at large and to generations to follow to stop: harbor works, and thus impede manufactures for the «ako of evading a small rate. Ho did not believe tire country folk were so small minded r-.s to refuse- to listen to the proposal. Dunedin helped tne country to get and extend the Otago Central railway," and was now helping the _ country to get an electric power scheme, and ho felt sure that the country peoplo_ would se§ in this and in the relationship generally a spirit of fraternity, and come willingly into tho scheme coco it was fnllv explained Mi; Galbraith thought that the country should bo prepared to contribute to improvements that were necessary. Mr Dickeon said 1 that the revenue after deductioninterest was sufficient to carry on wit if. Ho (Mr vralbraith) disagreed" with that statement, ihe margin now was £60.000 but next rear they would have to meet .1 higher rate of interest, and the niotmv availablefor improvements would be less than £oO,COQ. That sum could be spirit on tne one item of dredging. The ratine area was an equitable way of raisin* revenue that was required. 3 Mr Scollay admitted that a great deal could be saicr on both sides, but lie intended to vote against the proposal, and would outline some of hi? reasons. If wo needed more revenue whv not raise it in the ordinary way by increasing dues? The ships were making more profit than at anv previous time, ami importers were reedymg such high prices that they could raise no objection to paying more. Within ids time they had improved tho Lower Harbor enormously without a loan for the purpose, and they could carry on the deepening without extra rating. He thought that the uncertainty as to the amount to be raised would disturb the people. The charitable rate had grown and grown, and peopm would ask whether the harbor rate Avould grow in similar fashion. Quite a number of points could be made the proposal. liis point in voting " no ,f was that the proposal was premature. Our ex ?r lK o re h - ad ’ oeeu to ° filst i« the past. air Gable did not know that anythin* lie could say would add to the weight ofthe argument as so well put by the supporters o tje sclieme. If (he case was properly stated, and it were shown that Port Chalmers would have the first attention the country people would see the force of the argument. He could not understand why skoidd 1)e opposed on behalf of 1 ort Chalmers. It would be the very best thing that could happen for Port Chalmers.

The Chairman made a lengthy reply, in the course of which he pointed nm " that Gisborne, Timaru, Napier, and New Plymouth had rating areas,- and he said that giving this power did not necessarily mean that money would be borrowed under it. It the board could carry oh their work: without, they would certainly not borrow Mr Tapley also said that this rear the interest for works for £46,437 and for the dock £4.747, making a total of £51.184. Next year this would' lie added to when they renewed, the £200.000 loan. The motion was,put and declared carried on the voices.

Dickson asked for a show of hands and it was found that Messrs Dickson’ Russell, and Scoilav voted '• no.'’ the others “ ave.”

~,_Cnairnian then further moved—- • lhat in order to expedite the ccn.-.umma-tion oi the proposed rating area, it is desirable that, before Parliament is "approached for the necessary legislation, t'*e various country districts' be visited ’ and meetings held, at which full information :JC showing the advantages that wii. accrue to the country interests. That for the purpose of preparing details and making all necessary arrangements, the fonowtng be a. committee to report : Messrs Galbraith, Loudon, Moller, M'Donaid. Roberts, and the mover.” Mr Cable seconded this motion. Mr Dickson raised the objection that the motion would commit the board to the expenditure of money an sending the committee round.

The Chairman overruled the objection, pointing out that the question at present was merely as to appointing a committee.

Mr Dickson objected further that the committee would present only one side of the case to the people. The Chairman assured Mr Dickson that he would have a chance to speak .if he desired to. Tho motion was thereupon put and cartied.