New Plymouth Harbor Board.

Hawera & Normanby Star, Volume IX, Issue 1711, 25 August 1887, Page 2

New Plymouth Harbor Board.

la an article on New Plymouth Harbor Board's finance, tbe Titnarn Hearld after describiug the financial position of ths board's proceed b ;— Bui it most bo nndar* stood that even if the rate were paid withany trouble and realised tbe estimated amount, there would still be a deficiency. Is that an affair which concerns the colony, or is it the business merely of the New Fly* mouth Harbor Board and its creditors? Looked at from one point of view thft colony has certainly nothing to do with it. There was no colonial guarantee, and the creditors lent tbe money with their eyes open. But from another point of view the colony is greatly interested in seeing that all local bodies meet their engagements with outside creditors. At all events that is an opinion which prevails very widely, the contention being (bat default on the part of local bodies in pay* ing interest to Euglish creditors would seriously injure the credit of New Zealand. There is little doubt that such would be the effect, and, if a number of local bodies made default, the mischief would be verj serious. But tbe outlook is not as gloomy as that. Mr. Brodie Hoare was substantially right when he said that if the local bodies had been extrava> gant they could and would pay the bill. There are, however, exceptions to every rule, and the New Plymouth Harbor Board appears likely to make good the proverb. We shall not go into an elaborate examination ol the case. In fact, what we have told of the story is sufficient for our purpose. We take it for granted that in t-ome shape or other the New Plymouth Harbor Board will go to the State lor relief. The Government, especially at this juncture, will no nothing, even by way of temporary assistance. At least we iu•liue to the belief that the Premier and Sir Julius Vogel would wait till after the elections, and then lay the troubles of tbe board before Parliament, in preference to iucurring risk of censure for making an unauthorised payment and creating a very dangerous principle. The interest on the New Plymouth harbor loan has to be paid next mouth, and, if the affairs of the boar J are in the condition which has been represented by the newspapers, we may assume that default will be made, though not to the extent of the full sum now owing. Then tbe question arises as to what Parliament ought to do, or whether it oujjht to do anything. The caee ( M ODT readers will 6ee t is a complicated one. The 25 per cent, ol tbe proceeds of the land sales, and its extinction, or great diminution by tbe alteration in tbe land legislation and by the way tbe law has been of late administered, constitute a stumbling block. If the case were freed from that consideration there would not be much difficulty in coming to a decision. Parliament should insist on faith being kept with the creditor, and the only assistance given should be increased rating powers (if necessary), and tbe creation of un authority outside tbe board to make and levy a sufficient rate if that body held back, and to pay the interest from time to time as it became due. The district that incurred the liability and had the spending of the money should be held fully and solely responsible. But whether an exception ought to be made in favour of the New Plymouth Harbor Board on account of the vamsbud or vanishing 25 per cent. is a question which we are not prepared at present to answer. If that consideration were out of the way we are satisfied that it would be unjust and impolitic to shift any part of the burden from the district and place it on the colony. It would be unjust because the colony did not incur the liability and did not guarantee it ; and impolitic because, if one local body were thus helped, the concession would undoubtedly bo tbe signal for the putting forward of a host of claims to like consideration. The inducement to obtain relief at the expense of the general body of taxpayers would b<j very strong indeed, and quite irresistible in the case of some of tbe poorer and more heavily burdened local bodies. We do not believe that auy district or borough is really too poor to meet its liabilities J but if there were such a miserable case it would on the whole be belter for the colony to leave the local body to its fate than to render assistance, and thus open the door tv indefinite troubles in otber directions. Meanwhile we trust that the New Plymouth Harbor Board may, through its own. exertions, speedily find itself in smooth water again.