HARBOUR RECLAMATION

Nelson Evening Mail, Volume LXI, 9 June 1927, Page 4

HARBOUR RECLAMATION

SCHEME FURTHER DISCUSSED

FRESH DEVEI.OPMENTS

At last month's meeting of the Nelson Harbour Board a resolution was passed approving of carrying out the proposed reclamation of about 4 acres between the wharf and Franzen's provided satisfactory arrangements could be concluded with the two oil companies who had applied for leases of reclaimed land.

However, fresh and less favourable developments were disclosed at the Board meeting yesterday. Letters were received from the Vacuum Oil Company stating that they were unable to give an answer as to whether or no they will require any of the reclaimed land. They further staled that having received attractive offers of sites in Nelson city they could not yet decide where, they would erect their depot. The resolution above referred to was passed at a special meeting of the Board during June <n the. understanding that the. Vacuum Oil Company would take the acre. The Chairman reviewed the new position and briefly discussed the change in the financial outlook caused by U:e Vacuum Oil Company's possible refusal to lease the acre originally desired. A conservative estimate of the position showed a return of barely 5 per c-nt on the money invested in the scheme. Tint, was after'allowing a total cost of £:';0< r O, of which £2OOO would be debited to harbour improvements representing necessary dredging, etc. The question to be decided by IUO Board was whether they would sp-jnd their money on reclamation returning 5 per cent or leave it in the Bank at 4 per cent. There were, however, many other factors tn be considered. In the first place a certain amount of dredging was necessary in any event, and taking a quantity of spoil for reclamation from the shallow channel on the south side of the wharf, as proposed, would provide extra berthage, which would greatly relieve.the. congestion at the wharves. Necessary dredging whether used for reclamation or not would cost £2OOO. Was the. Hoard to use this dredging to leclaim land or was the spoil to be taken out to S'ea and dropped as previously? The speaker was himself in favour of using the dredging to assist reclamation. It had been pointed out to him that if the oil tanks were allowed to be established then the. Board would lose, a considerable amount of revenue. 'I he nett revenue from handling oil in cases and drums last year was £691. An equal amount brought ashore, in bulk at the proposed charge of 1/9 would bring in oulv £lßl odd. The Board would lose about £512. Even if tanks were not erected at the Port then they would be put up elsewhere and the revenue would be lost just the same. Also the establishment of a large distributing depot could bo expected to reduce the price of petrol and increase consumption. Oil boats would probably be sent to Nelson, which would mean increased dues to the. port. Dealing with the financial aspect, the Chairman slated that the selyfime would eat up a good slice of reserves, but sufficient would remain for wharf repairs and other work. The Board had held their own in revenues in spite of bad times.

The Hon. W. W. Snodgrass said that the flaw in the present arrangement was that the scheme provided for reclaiming four or five acres, and yet the only definite lease in sight was for two acres. He proposed that only what was required for this two acres and roads should be completed now and the remainder as required. The feeling of the Board was that slight amendments should be made in decisions previously arrived at, and accordingly Mr Greenslade gave notice cf motion to rescind at the next meeting two resolutions passed at the special meeting last month. Two resolutions dealing with the work were then passed as follows:-

(1) That the Board proceed with the reclamation of from two to five acres and that the work be commenced as soon as possible and subject to' satisfactory arrangements being made with the British Imperial Oil Company. (2) Thin the Harbour Board "lease to the licitish Imperial Oil Company approximately two acres of land when reclaimed at a rental of £350 per annum, plus rates for 21 subject to a perpetual right of renewal and subject to a revaluation at the end of each period of 21 years, the term to start within one month from the completion of the reclamation of the said two acres, an agreement to he entered into between the Board and the British Imperial Oil Companv setting forth the above terms together "with other necessary provisions.

Further discussion took place, about acquiring plant necessary for the leclaination, which will bo proceeded with as soon as a favourable reply is- received from the British Imperial Oil Company.