DUNEDIN POST OFFICE.

New Zealand Herald, Volume LXIX, Issue 21224, 2 July 1932, Page 10

DUNEDIN POST OFFICE.

COST OF NEW BUILDING. CHARGE ON DEPARTMENT FUNDS. [UY TELEGRAPH.—OWN CORRESPONDENT. ] DUNEDIN, Friday. A statement was recently made by the Mayor of Christchurch, Mr. D. G. Sullivan, that the State Fire Building, which it is proposed to build in Christchurch shortly, was in an altogether different category from the Dunedin Post Office, in that it would be financed entirely from the funds of the department, whereas the Dunedin Post Office would be a

charge on the Consolidated Fund. This assertion has been contradicted by the Postmaster-General, the Hon. A. Hamilton.

When Mr. Sullivan's statement was shown to the member for Clutha, Mr. P. McSkimming, he telegraphed to Mr. Hamilton in Wellington as follows: " The Mayor of Christchurch is reported to have stated that the Christchurch Fire Insurance Building is likely to be proceeded with, as the department has the funds in hand for the work, but if the Dunedin Post Office were built the cost would be a charge on the Consolidated Fund. Please wire whether the latter statement is correct, as I understand that your department lias reserves and that the post office would not be a charge on the Consolidated Fund.

The following reply was received by Mr. McSkimming;—"The cost of erecting the new post office would not be a charge on the Consolidated Fund." Mr. McSkimming said that, in view of the fact that the aggregate reserves of the Post and Telegraph Department, as published in the balance-sheet for 1931, were approximately £3,500,000 it was difficult to understand how Mr. Sullivan had come to make the statement attributed to him. Mr. McSkimming said he understood, of course, that these reserves were invested partly in the department's own assets and partly in Government, securities, but nevertheless they constituted the profits of the department. If it were competent for the State Fire Office to be built out of reserves of that department, surely it was only reasonable that the same principle should apply to the Dunedin Post Office.

Sir. McSkimming said he felt quite confident that tho Government would treat Dunedin fairly, and if the money were available there could scarcely be two Opinions as to the Dunedin Post Office having the prior claim.