PURCHASE OF THE WHARVES

Nelson Evening Mail, Volume LII, Issue 165, 10 July 1918, Page 5

PURCHASE OF THE WHARVES

ACTION BY THE HARBOUR BOARD. UOAN PROPOSAL FOR £103,000. A special meeting of the Nelson Harbour . Board :to further consider the question of the purchase of the wharves was; held to-day. Present—Messrs H. R. Duncan (Chairman), H M. Meld, A .P. Alport, J. Ingram, H. P. Washboum, I. Tunnicliff, T. S. Edwards, W. W. Snodgrass, G. Macmahont. Mr R\. B. Jackson, who ds away from Nelson, was excused. The Chairman moved: "That steps be taken to raise- a special loan of £103,000 for the purchase j>i the wharves and. foreshore as described in

plan No. 21,761 of 20th July, 1914, on the security of the Board's- endowments and of a special rate of 13-32 of a penny in the £ on all the rateable property in the Nelson Harbour District, and that such loan be repayable at the expiration of years from the raising of the loan, and that the sum of £IO3O in «ach iyear be appropriated from the Boards' •Harbour Fund Account during the icurrenfcy of the loan) as a sinking fund for the repayment thereof."

Speaking to the motion, the 'Chairman said the ratepayers should be urg«d to -vote for the proposals. The Board must go on with the question, as the option over the wharves lapsed on 27th October. If the Board did not go* on it. might lose the option and the offer of the-money which was expected from the Public Trust. He was sorry the matter -had to be decided during war

time, but if the opportunity was not now embraced it might be lost for all time. Whatever the wharves paid now' they would pay much more in- the future. The Board should be candid and frank with *the ratepayers and place the financial position • clearly before them. The total value of the harbour district was over £4,000,000. The total

amount required to be raised "for interest and sinking fund on thei loan'would he £6437, 10 iper cent., making £7OBO, and the -.rate required), would .be 13-32 d in the £. The Board's net income at present was SA } butprovision had been made for meeting the interest charges on; the \ £65,000 harbour loan by a rate of-l-6d, which produced £2650. If the Government subsidy was not Icontinned this amount would be reduced by £SOO to £2150. Th*e revenue-from the wharves was £5562, and allowing for contingencies he estimated that the Board would have. to find, say, £1450, which would mean a rate of l-12d in; the £, leaving £I7OO for dredging, mole repairs, wharf renewals, etc. Unless the Government could be /induced to continue its payment, of subsidy in lieu of foreshore endowments he thought the Board, should prepare a case and submit it to Parliament through their member. The Chairman repeated thai the ratepayers would be asked to find* only about £l4so—* rate of l-12d im the £• This would place the Board's finances on a sound footing, and. the Board must maintain sound finance, and have

a certain , amount for contingencies. , With a return to the pre-war revenue the Board could tell the ratepayers that the rate would be remitted. Mr Washbourn seconded! the motion. Mr Tunnicliff said it must be made quite clear that there would! no 1 - be a differential rate on the Nelson railway if the " Railway Department io'd the

wharves. Mr Manmahon said it should he made clear that the 6i per cent, interest and sinking fund wiped out the loan in?6s years; Mr iSnodgras® was sure the majority - of business people were in favour of acquiring the wharves at the price at which they were first offered. It »;s a much better proposition! now. It «<ncd be necessary to levy a rate, to satisfy the 'lenders of the' money, but the Board would only have to call up the difference between ihe revenue 'an.* "the interest and sinking fund. . He agreed with the Chairman in regard to the £SOO Government subsidy. He trusted the proposal would be carried' by the ratepayers. .Mr Allport considered the proposal •was a sound- one. The Board must not

lose- the " opportunity of acquiring the wharves, and he was sure the rate-

ipayers' would see the advantage of getting control of them. The district was going ahead and after the -war there would be rapid making the wharves a fine investment. It should be made clear that the sinking fund would pay off the loan in ?6£

yearsv Mr Field supported l the proposal), butthoughti the people would, require a full explanation by a competent 'accountant. Mr Edwards said the proposition was a. sound one—the Board was for £103.000 .what was worth £155,000, or ire-other words "Is 6d for Is." In the future the proposition would be of far greater- value than at the present time. Mr Ingram added his support of the proposal. • The resolution" was then- put and carried unanimously. The Chairman expressed pleasure 'at the carrying of the resolution nnani-' moualy. The propoteStaon was a' "very sound one, and if the revenue from the wharves went up the Board" -would ins time be in a position/ to face the carrying out of the complete original scheme for harbour improvements, making Nelson; one of the best ports in the Dominion. Mr Ingram moved that the following committee make arrangements for placing the proposal before the We-payers:—-The Chairman, Messrs Washbourn, Snodgrass, Allport, Macmohon. The motion was carried. On Mr Field's suggestion it was agreed that a special' meeting of the Board be held- after the Committee had prepared its statement. On the motion of Mr Snodgrassi, it was resolved that a conditional application for a loan of £103,000 be made to the Public Trust Office. The Board then rose.

? The Loan Proyosal Committee will meet next Tuesday at .11 when arrangements will probably be made for meetings of ratepayers throughout the district for the purpose of fully explaining the proposals.