HARBOR BOARD

Evening Star, Issue 18057, 26 August 1922, Page 8

HARBOR BOARD

THE MONTHLY MEETING. TAXATION PROPOSALS CRITICISED. The monthly meeting of the Otago Harbor Board, held last night, was attended by Messrs H. 0. Campbell (chairman), J. Loudon, K. Ramsay, J. Walker, H. B. Mollcr, N. Galbraith, A. Cable, T. H. Russell, D. Lamach, J. M'Donald, and T. Scollay. RAILWAY DEVIATION. The Returned Soldiers’ Association wrote asking that unemployed returned soldiers be given preference in the engaging of lanor for the railway deviation.—Resolved to inform tire association that returned soldiers would be given every consideration. The Chairman, stated that, in. regard to the matter of wages paid to the men on this work, he .and some other members ot the board had communicated with the City Council, which had pointed out that it. could not give the £I,OOO for relief works if the men working on them were to be paid the award rate; the rate must bo 12s a day. Mr Moller said that work had been found to absorb this £I,OOO apart from the Leith deviation works. Mr Russell maintained that this could not be done- without the resolution to pay the award rate being rescinded. It was not right to give one lot of men the full rate and another lot less. Air Mollcr pointed out that the resolution referred to the rate of payment for the Leith deviation works. The £I,OOO was being spent on road formation near the Vacuum Oil works. Mr Cable still protested that the course was a. wrong one; it was unfair, he said, to put two lots of men on a different fooling. Mr "Walker said there was nothing To rescind; the board was carrying out the wishes of the council, while returned soldiers were being employed—and doing excellent work—-nn the deviation. The matter dropped. RETIRING ALLOWANCE. A letter from the retiring harbor master (Captain Thomson) solicited that the amount nf pay for his year’s leave of absence be pal'd over at the beginning of the term. Mr Loudon moved that the request lx>. referred to the Finance Committee to see wind could be done. Mr Walker asked for the legal opinion on tho position. The Chairman rend the legal opinion, which was to the effect that the board could not pay Captain Thomson a lump sum before he left the service. Mr Loudon said tho board could get over that by making it a retiring allowance. The board, ho averred, had done it so frequently that there had been no question about it. The motion was carried. APPOINTMENT OF HARBOR MASTER. An item on the order paper rend as follows :—“ From the marine snneriutendent. Shaw, Savill and Albion Company, ic age limit and Captain Duncan.” This referred to tho wage limit, for the harbor roaster, for which applications are now lacing -invited. Mr, Galbraith moved that the matter he held over till applications for the port- i tioa had been received. Messrs Walker and Loudon asked that tho letter should be read, Mr Galbraith said tho reason for his moving his motion was that it would be time for the qualifications of people to be put forward when the applications for tiie position were considered. Mr Moller said he thought it was understood there was to be no “ canvassing ” for this position. Tho letter from the Shaw-Savijl Company was. he understood, in the direction of advocating the good points of a man. Such a letter should bo held over till the time when a decision was to bo made. Mr Galbraith's mol inn, on being put to the meeting, was carried by six votes to four. TAXATION PROPOSALS. The Harbors Association wrote regarding the Taxation Committee’s report and pointing out various clauses of vital importance to harbor boards and against which protest should be made. The Secretary said be had communicated with Air Dickson, ALP., on the matters. Air London said that the most- serious proposal ot the Taxation Committee’s report affecting the Otago- Harbor Board was that referring to land tax. He v, as of opinion that the analogy between private land owners and local bodies who had acquired- or had been endowed with lands (in- most cases for specific purposes! was not a very close one. Local bodies had no personal interest- in and- did not hold lands for protit, any revenue derived therefrom after allowing for administration charges being expended either in providing fresh utilities for tho people or extending and improving those existing. On the other hand, a private land owner (who might bo an absentee) could take every penny of profit made out of the country, and use it developing some foreign land. To his mind there was a vital difference between the two classes of l-ind owners. On tho other hand, it seemjd anomalous that a block of land, say, on one side of Crawford street held by a private owner should: bo subject to land tax, while a block on tho opposite side, used for identically the same purpose, owned by a local body, should be exempt. If a land- tax was to bo imposed, then both should ho on tho same footing. In his judgment, with regard to local body land, if any change was to be made, tho method of'individual taxation should bo adopted, and the land tax made payable by the lessee or occupier. Coming to tho question as to how the proposal directly affected their own hoard, ho said that they had estimated the value of their lands let and unlob at about £550,000. If tho rentals now received for the portions leased were capitalised on a 5 per cent, basis it would give a capital value of about £350.000, and, assuming for the sake of argument, that their assessment for taxation purposes was fixed at £300,000, the annual, -amount payable by way of graduated land fax would come- to £9,500. Members would readily see tho position the board might bo placed in if in any year after providing for interest and’ administrative costs they found- themselves with a deficiency of £2,000 or £3,000, and in addition, had to find £9,600 for land tax. No doubt the members of the Taxation Committee were cognisant of the provision in the Harbors Act that all goods for Government purposes passed over the wharves and lands of harbor boards free of cost; but, judging from their recommendations,. they (the Taxation Committee) would be likely to favor the Government paying dues just the same as any other importer or chip ownc. The Government in the case of tho Otago Board had benefited by non-payment of duos to the extent of £63,993 in eight years—l9l431—on a tonnage of 590,118. He (the speaker) had, speaking from memory, been a member of at least three deputations to various Ministers in an endeavor to get this altered, but the reply in each case had been that if the Government was called upon to pay dues, then the boards would be called upon to pay land tax. Looking at the position carefully, ho felt that, in the .meantime at any rate, the board was quite justified in protesting against any alteration on the lines suggested by tho Taxation Committee. With regard to the flat rate tax on local body debentures of 2s 6d in the £, he thought the Taxation Committee's recommendation was on sound lines, and he could not see any reason why a differentiation should ■be made between income derived from interest on local body debentures and- income from any other source. There were 422 subscribers to the last loan, issued by the board of £205,000, and 190 of these had jnade affidavits to the effect that they were not.liable for any income tax. It was impossible to ascertain the position of the remainder, but it was reasonably certain that nearly the whole were not liable for i an income tax rate, greater than 2s 6d in the £. so that the concession would benefit only a few. The issuing of Government Joans free of income tax and concessions on specific investments, in bis opinion, were unsound, and bo did not I

believe that the adoption of the Taxation Committee’s recommendation would appreciably affect subscriptions to local body loans. As to tho proposal dealing with levying income tax on. “ all public bodies ” and “ puWicly-owned utility undertakings,” be did not think it referred to harbor, boards, as they were not engaged in any competitive trading concern, and wove not likely to be. A great, deal might bo said on this question, but he thought a discrimination should be made between public utility undertakings, such as water, gas, tramway, and electric supply, where then; were no competitors, and trading concerns such as milk, bread, brickmaking, etc., where the local body engaged would be only, one of many supplying the same commodity or utility. So far as the board was concerned, he thought they need not worn-, as a lot of water would flow in and out of the Heads before it could be shown that the Otago Harbor Beard had any taxable income. At the same ..line, ho thought their protest should be made against the proposal! when tho exact intention could be ascertained so fai as it applied to harbor boards. After further discussion it was resolved on the motion of Mr Soollay, seconded by Mr LamacJi, that the board strongly endorse the action of the m protesting against the proposed taxation, and that the matter be referred to the Finance Committee to take the necessary steps to further this protest. TRADE EXHIBITION. A letter was received from tho High Commissioner for New Zealand (Sir James Allen), in reply_ to tho board’s inquiry concerning the visit of tho British Trade Exhibition, and stating that there appeared to be no intention of reviving the project. Should an effort be made, however, to do so, he would do his best to \vo Dunedin included in the itinerary. Sir James Allen added that there was a proposal afoot to carry out a visit on Hie lines of tho official scheme, and ho would watch Dunedin’s interests in tho event of it developing.—The Chairman mentioned that this private venture was under way. —The letter was received, Mr Scollay remarking that Sir James Alien should bo thanked for his interest in tho matter. PROPOSED NEW SHOW GROUND.

The secretary of the Otago Agricultural and Pastoral Society wrote stating that lie had been requested by his committee to write to the board with reference to obtaining a site of about twenty-five acres for tho purpose of holding the annual Summer Show. The committee had found that Tahuna Park was not - altogether suitable for its requirements, and the present railway arrangements did not meet with the approval of tho exhibitors. It was essential that the rent should be a low one, and that tho committee should obtain from the board a fairly long lease to justify, it in spending money in the erection of buildings for .show purposes. While it was not necessary that tho area should be directly connected by rail, it was essential that there should be facilities for a good loading bank convenient to the site to allow stock to be.properly unloaded. The area they required would bo occupied only for .about one week in each year, and-consequently they .saw no reason why this land should not- be utilised by other bodies. The .committee was not iu possession of any facts relating to tho Lake Logan area, but believed tbat_a site in that locality would meet its requirements. The society was not a profit-making concern, as any revenue beyond the expenditure was devoted to extending the agricultural and pastoral interests of the dominion.

Mr Walker moved that Mi® letter bo referred to the Reserves Committee for a report.

The Chairman said ho was a. member of the A. and P. Executive, and felt sure that the members of the Harbor Board were in sympathy with the work Mr® society was doing. Ho hoped the board would meet members of the society, to discuss the matter. They all *;new ‘how much a successful show meant to Dunodin. Mr Loudon said the southern endowment would bo the most suitable place for a show ground. Ho did not think there was the slightest chance of any portion of Lake Logan being given for that purpose,

Mr Walker: Arrange with the L'niversity. (Laughter.) Mr l iiimuch said the society would nevei 1 get a foot of Lake T<ogan. Tiie motion was curried.

FIRE PROTECTION AT WHARVES. In connection with tiro protection on the wharves, the Works Committee reported:—“ln response to the request^of the Chamber of Commerce deputation which waited ou the board on May 26, the committee has given this question further consideration, ami lias had correspondence with the City Council, but to no satisfactory purpose, tho last letter from the town clerk saying: ‘ The committee (Water) sees no reason to depart from the previous decisions already sent to you luient this much-discussed subject ’ The committee would again emphasise to members the fact that the Rattray street main, below Whaif street, is, consequent on incrustation, reduced to a diameter of about 2iin, and recommends that the Chamber of Commerce bo advised l that the board, as an indication that it is prepared to meet the wishes of the chamber in some measure, is prepared to expend some £4OO *} £SOO in tho installation of hydrants at the various sheds if tho chamber can prevail on tho City Council to install a suitable main.”

Mr Mollor moved -the adoption of tho report. He asked' that the correspondence be sent on to the Chamber of Commerce. He understood that the 4in main had now been cleaned, and that the City Council now had extra mains turned on at the reservoir. liven when -a fire was on, this main would now be kept full all the time. The engineer was going into tho matter, and would shortly report to the board, Mr Cable seconded the motion. Mr Loudon moved as an amendment •'that the clause in the report be deleted. He thought it was tho Fire Board’s function to provide for fire protection on the wharves. The Fixe Board was created for a special purpose, and had powers to raise money for its purpose. The motion for the adoption of tho report was carried. FINANCE COMMITTEE. The Finance Committee reported that it Lad given further consideration to the question of storage charges on transhipmeats ex the Kia Ora, in consequence of which it was again recommended that the charges be remitted, with the exception of two tons ex tho Paloona, which wore not disputed. It was recommended that a donation of £3 3s be made to the funds of (he Workers’ Educational Association, lire report was adopted. DOCK COMMITTEE.

Tho Dock Committee recommended that tho board’s electric light regulations be strictly enforced in the future, all vessels in dock requiring external lighting to be required to use the power and plant which the board had provided. Tiro report was adopted. AUCTIONING OF LEASES.

Mr Galbraith moved—-“ That the resolution passed by the board on June 30 relative to the distribution of the board's auctioneering business be rescinded.” He pointed out that for many veers the firm of Messrs Park, Reynolds had done the work for the board at a small fee, and that eventually tho board- had- voluntarily increased tho rate of remuneration.

Altogether there was not much in the sale of the leases. Mr Scollay seconded the motion. The .Secretary vend a letter from the secretary of the Laud Agents and Auctioneers’ Association giving a list of firms, and stating that the City CVnmvil and Public Trustee distributed this business among them.Wh'en this list was read out it was pointed out that many of these linns wore onlv land agents, and not auctioneers. Mr Walker thought the. board had done (lie right thing in distributing its business. He. thought it was quite a. reasonable thing that other reputable firms should get a share of the. business. Mr Loudon opposed Mr Galbraith's motion, and thought the hurinesa should bo distributed. After other members had spoken for mid against, the motion was put to the meeting, and was carried on tnc vote of the chairman, who said he. thought it would bo a good thing for the board to make a change for, say, twelve months. DUES REVISION. Mr' imudon moved—“ That, with a view to ascertaining' whether some more scientific and equitable method cannot bo devised for levying dues on goods, exported and imported, a committee consisting of the chairman of the board, chairman of the Finance Committee, and

Messrs Galbraith, Ramsay, and the mover be appointed to investigate and report to the board at its November meeting, tho committee to bo empowered to consult with the other harbor boards of the dominion, Customs Department, chambers ■if commerce, and others interested.” The mover said his motion was an i ivestigating one. Members knew that En board was continually receiving letters from merchants and others asking t ii at concessions ha made on certain dues. The principle of his motion was to ascertain if the levy on an ad valorem duty basis would be more satisfactory to merchants. He quoted an instance of a cargo of phosphate rock of about 3,000 tons and of a capital value of about £12,000 which carried over £I,OOO in harbor dues. This,lie thought, was out of proportion to the value of the goods. His idea was to confer with_ other boards, chambers of commerce, importers’ associations, and others interested, to see how far the substitution of ad valorem dues for the. present haphazard methods could ho adopted. Mr M’Donald seconded, and complimented Mr Ramsay on his efforts in the matter. Ho thought the committee should give attention to the shipping of apples with a view to reducing tho charges thereon, and thus assist tho industry. Mr Scollay remarked that it should ho understood that this was not a remission of dues, but only a theoretical investigation. ; The Chairman said that if tho board had collected 1 per cent, ad valorem dn importations overseas and no dues on exports and coastwise trade it would be many thousands better off. The motion was carried.