WORK TO BE DISCONTINUED

Nelson Evening Mail, Volume LXXII, 19 April 1939, Page 10

WORK TO BE DISCONTINUED

LOAN MONEY AT PRESCRIBED RATE UNOBTAINABLE AUCKLAND BOARD’S DECISION AUCKLAND. 18th April. ‘ Because it has been unable to obtain loan moneys for capital works at the Government’s prescribed interest rate of 3i per cent., the Auckland Harbour Board decided at a meeting to discontinue work on the new export wharf which is being constructed off the j eastern reclamation, adjacent to the j export stores being built by the Auckland Farmers’ Freezing Company, Ltd. Between 150 and 200 men are employed on the work. Of these 50 will be dismissed on Friday and the services of the others will be gradually terminated after that date unless financial relief is obtained. The decision to conclude operations

was made on the recommendation of the superintendent, Mr D. Holderness. who submitted a report on the subject, which was adopted. Mr Holderness said that the Minister of Finance, Mr Nash, had promised to advise the board of the Government's intentions in the mailer not later than Bth April, but no communication had come to hand. A telephone inquiry to thb Treasury on 6lh April elicited the information that the matter had not at that dale been dealt with by the Minister. and that, though it was regarded as urgent, it would still be some time before a reply could be expected. ■'Mi* Ashwin <of the Treasury) again urged that the board should continue the prosecution of its works, as he was confident that a solution would shortly be found by the Government Mr Holderness added. “I consider, however, that it would be unwise to continue at the present rate of expenditure on capital works without a more definite assurance that the necessary loan moneys will be available to enable the Board to meet its commitments." IMMEDIATE DISMISSALS Mr Holderness added that if the board accepted his view he proposed immediately to curtail expenditure heavily on the export wharf and breastwork with a view to closing down this and other loan works completely if an early assurance about finance was not forthcoming. The proposal would unfortunately involve immediate dismissals, but only in that way could the heavy rate of expenditure be reduced. Unless early relief was given the dismissal of further men would be inevitable. The board adopted the report, and decided to notify the Minister of Finance accordingly. There vVns no discussion. “This matter has been exorcising the minds of board members for Some considerable time,” said the chairman. Mr W. B. Darlow. in a subsequent interview. The board h3s beefi in communication with Mr Nash on several occasions, and he himself had made several trips to Wellington on the matter. The estimated cost, of the wharf was about £500,000, and up to

the present the board had spent ap-j proximately £IOO,OOO. The balance of i | the money to Complete the contract!, , was not in sight at thfe rate of interest permitted by the Local Government j Loans Board. MUST SEE WAY CLEAR j “As the public realises, the board, along with all other local bodies, is not permitted to raise money at a i higher rate than 3£ per cent,” he | added. “Though debentures of the 1 Auckland Harbour Board have been sought after before any other securi-! ties in New Zealand, at this low rate; the board has been unsuccessful in 1 raising the n&Cessaiy finance.” In discussing the seriousness of the position with Mr Nash. Mr Darlow said he had pointed out that the board would probably be able to raise the 1 money if the rate was raised, but that j it would naturally prefer the Govern- j ment to provide the amount required | at 3£ per cent. He had emphasised I I however, that the board had to have

the money and must see where the whole amount was coming from, otherwise he would have no alternative than to recommend stoppage of the All realised the seriousness of that step. Mr Darlow added. It was serious from the point of view of Auckland. but there was no alternative.