PORT OF GREYMOUTH

Grey River Argus, 14 August 1935, Page 3

PORT OF GREYMOUTH

GOVERNMENT PROPOSALS ACCEPTED. BOARD NOW FREE OF DEBT. A special meeting of the Greymouth Harbour Board was held last evening at. which it was decided to accept the proposals of the Government regarding the transfer of the loan liability of the Board. The chairman, Mr. P. J. McLean, presided, and there were present Messrs. D. Tennent, W. Clayton, G. E. Perkins, J. Ryall and the secretary, Mr. W. B. Gilbert. Apologies for absence were received from Messrs. G. Perry, J. W. Greenslade and the Board’s engineer, Mr. D. C. Milne.

The chairman in opening the discussion on the Government proposals, said that he regretted that there was not a full meeting of the Board. Mr. Perry had had to return to Hokitika but had made it clear to the speaker that he saw no alternative but to accept the offer made by the Acting Min ister of Finance, Mr. Hamilton, as set out in his letter to the Board, dated April 18. Mr. Green si ade was absent through indisposition. Mr. McLean said that he had gone very fully into the whole matter, and had also been one of the deputation which visited Wellington for the purpose of discussing the question with the Minister, and he had come to the conclusion, whilst holding no brief for the Government, that the Board could do no better than accept the Government proposals as they stood. He considered that it would be in the best interests of the Board that that course be followed, and he moved accordingly. Tn seconding the chairman’s motion, Mr. J. Byall said that so far as he could see, there was no other course open to the Board. Mr. Perkins concurred.

Mr., Clayton supported the resolution, adding that the Board had spent its reserves but now had a good port. Mr. Tennent dissented from the other speakers and said he could not support the resolution, as the, Government had never kept to its original bargain in connection with its payment of £15,000 per annum as a set off for the Brunner railway.

The motion was put and carried, Mr Tennent dissenting.

The chairman in declaring the motion carried, said that he felt that the Greymouth Harbour Board being free of debt, was in a much better position than any other board in the Dominion. By its acceptance of the terms upon which the Government offered to take over the loan liability of the Board, the position will now be as follows: 1. The accumulation of the Board’s Sinking Fund, £99,280 12s, as at 31st March, 1935, will become the property of the Crown.

2. The present statutory subsidy of £12,000 (formerly £15,000) will be cancelled. 3. The whole of the special coal rate, which last year amounted to £2071 12s 6d will be payable to the Government for the future. 4. Any existing unexercised borrowing authority will be cancelled. 5. The finances of the Board will be subject to annual budgetary control in terms of Section 3 of the Greymouth Harbour Board Amendment Act, 1920, which implies rating if revenue does not balance expenditure. 6. No liability will attach to the Government for reinstatement of any of the Board's monetary reserves nor for the replacement of dredge, tug, or any other assets. (At 31st March, 11131, the Board’s reserves totalled £3lOOO and at 31/3/35 these had disappeared owing to the short payment of the subsidy, the Board being compelled to draw on them to meet, interest and sinking fund payments). 7 The Board will in future be elective, witli no further Government re presentation than applies generally to other harbour boards. Legislation is to be promoted next session to give effect to the transfer of the Board’s loan liability on the lines set out in the Minister’s lettey of 18th April, which embodies the foregoing points.