THE AUCKLAND HARBOUR BOARD.

New Zealand Herald, Volume XXV, Issue 8988, 28 February 1888, Page 6

THE AUCKLAND HARBOUR BOARD.

We have been favoured with the following communication with reference to our comments on the finance and position of the Harbour Board. We have much pleasure in giving it insertion, and shall treat the subject in our issue of to-morrow. to THE editor. Sir, —I have the honour to inform you in reference to the leading articles which appeared in the New Zealand Herald of the 23rd and 24th instant, respecting the financial position and accounts of this Board, that tho Finance and Legal Committee of the Board has had a report made upon the articles in question; . and I have been directed to forward you a copy of the report, with the request that you willcause the same to be published in the New Zealand Herald. Copy of report herewith.—l am, etc., James M. Brigham, Secretary. Auckland, February 27th, 1888. To the Chairman of the Finance and Legal Committee of the Auckland Harbour Board : Auckland, February 25, 1888. Sir,—ln accordance with the request of the Finance and Legal Committee, that I should report upon articles in the New Zealand Herald of the 23rd and 24th inst., wherein reference is made to the financial position and tho accounts of the Board, I beg to forward the following information : —The amount paid for interest on loans during the past year was £19,000, less amount received for interest on fixed deposit, etc., £1209 5s 2d. Total amount paid for interest during the year, £17.79014s lOd ; the amount payable this year will be £21,500, less interest on fixed deposit, etc., £2500. Amount payable for interost during the year,£l9,ooo. The amount paid off loan of 1874 at this date is £17,'200; this is paid by sinking fund of 1' per cent on amount of loan=£lsoo per annum, with interest on debentures paid off added to the sinking fund. Bonds are now m London for the conversion of bonds of 1874 (6 per cent.) into bonds of 5 per cent., and when this is done the charge for interest will bo decreased £1600 per annum, and the item of sinking fund will disappear, thus lessening annual charges £3000 per annum. The office expenses and salaries last year amounted to £3/33. The revenue for tho past year, exclusive of refunds and interest, was £29,675 178 Sd, and tho intoreßt paid as above, £17,790 14s lOd, the balance remained for payment of sinking fund, working expenses, and charges as per statement. The expenses of working dredgers cannot fairly be included in the working exEenses of the Board, as such expenses should e charged to the various works upon which the dredgers have been employed, viz., Hobson-street Wharf, Calliope Dock (for which the contractor has to pay), and jetty No. 2, the only work remaining for the dredgers to do is tho dredging off jetty No. 2. and when that is done all dredging required for some time will be completed. The statement that £5000 loan funds was takon to pay interest is incorrect, as there was to the credit of the general account at the time this transfer was made, some £6662, and tho transfer was strictly in accordance with the provisions of the Auckland Harbour Loan Act, ISB6, to rocoup advances made from general account for special works, in proof of which the attention of the Auditor-General was directed to the items of transfer, and tliev have been sanctioned. The balance at the end of the year as hereafter stated in general account was £12421 18s 4d. After payment of interest and sinking fund on 10th January, ISBB, the balance was £6544 4s 9d. Tho Act of 1886 authorised the Board to float a loan of £200,000 for harbour works, the Board has, howover, floated only £100,000 of the loan, and of this amount there is to credit at the end of the year £50,190 10s lOd, £40,000 of which is placed upon fixed deposit at the Bank of New Zealand, and, as a matter of fact, produces more interest than the Board has to pay for it. The cash balances at the end of the year amounted to £65,717 4s 2d, viz., loan accounts. £52,271; general account, £12,421 18s 4a; sinking fund, £523 17s lOd ; contractors' deposits, £3500 Bs. Reference is made to the accounts of the Board not being submitted on tho third Monday in January. The accounts were made up on the 2nd January, 1888, and dated accordingly, and were then ready for audit, but as " The Harbours Act 1878 Amendment Act, 1886" provides that the Audit Office shall have the same powers in relation to such accounts as accounts under Section 31 and 32 of " The Public Revenues Act, 1878," this necessitated the sending of accounts to Wellington for the certificate of the Auditor-General, hence the reason tho accounts of the Board have not been presented as hitherto. As to salaries of officers, Standing Order No. 53 provides that all salaries of officers of the Board shall be voted annually, in the month of December, and each quarter statements of revenue and expenditure are placed before the members of the Board, therefore the members of the Board knew, when voting salaries, what was the actual financial position of the Board.—l have, &c., James M. Bkioham, Treasurer Auckland Harbour Board.