SHIPPING CENTRALISATION

Greymouth Evening Star, 10 April 1943, Page 2

SHIPPING CENTRALISATION

SUBSIDY TO HARBOUR BOARDS

NEW PLYMOUTH, April 8. “This letter only goes to show that the board must be bankrupt before it can get assistance,” said Mr. S. Vickers, when the New Plymouth Harbour Board to-day received details of the Government offer of help to ports adversely effected by the centralisation of shipping as a result of the war. Members expressed opposition to any mode of assistance that first ,required the port authorities to eat into their financial reserves. The plan for financial help was outlined in a letter from the Prime Minister (Mr. Fraser) to the New Zealand Harbour Boards’ Association. Mr. F. L. Frost, M.P., said it should be brought to the notice of the Treasury that Auckland had shown £500,000 profit and Wellington about the same. “They have taken our trade,” he said, “and I consider they should be levied to pay us.” The Government could not be expected to tax the whole community with the object of subsidising the smaller harbour boards. There were huge reserves in the coffers of certain boards as a result of the war and the diversion of trade from the smaller ports. Mr. Fraser wrote that it was clear that during the current year assistance would be required in .several cases. It had been decided that those boards requiring Government assistance should be asked to submit a copy of their estimates. for the , current year with an estimate of the amount of assistance necessary. Generally, the subsidy paid to any board would be restricted to the additional •amount required to meet essential maintenance and other current expenses after all reasonable economies bad been effected and use had been made of any reserve or other resources that could be made available without placing the finances of the board in an unsound position. Any board to be granted assistance would be required to work on approved estimates for the period covered by such subsidy.