TRANSPORT FINANCE

New Zealand Herald, Volume LXIX, Issue 21359, 7 December 1932, Page 13

TRANSPORT FINANCE

THE AUCKLAND BOARD EMPOWERING BILL RECASTED RATE ON SINKING FUND [by telegraph—special reporter] WELLINGTON, Tuesday There has been some recasting of the provisions of the Auckland Transport Board (Conversion of Loans) Empowering Bill, which was the subject of a report made to the House to-day by the Local Bills Committee. The amendments were made at the instigation of Mr. IT. G. R. Mason (Labour—Auckland Suburbs), who introduced the bill in order to meet the desires of the Transport Board and the City Council. "The essential motive that prompted the promotion of the bill was a desire to secure a reduction in annual charges respecting capital," said Mr. Mason in an interview this evening. "The Transport Board proposed originally to effect this object by raising a new loan and arranging to pay off the holders of debentures under the old loan which had been raised by the City Council, the board's predecessors in the undertaking. "Although the Transport Board was under statutory obligation to the City Council to indemnify it in respect of this loan, doubt was raised as to whether the board had power itself to deal with the debenliiro holders and pay off the debentures. The object of the Rill was to enable the board to pay them and this was how the matter stood when the measure was introduced.

"Subsequently the subject was discussed between the council and the board and it was decided that the better plan, instead of raising a new loan, would bo to confine the sinking fund to the original amount of 1 per cent agreed to by tho ratepayers on tho poll authorising the loan. Tho council, at the time it owned the tramways and at the time when revenue was very buoyant, established the fund at the rate of per cent per annum. " '

"As this increase was an entirely voluntary act on the council's part, there would have been nothing to prevent the council from reverting to tho originally authorised rate of 1 per cent had the whole matter remained in its hands. However, the same statute which constituted tho Transport Board provided that the board should make the same sinking fund payments as the council had been making. Thus the higher rate had become embodied in a statutory provision and hence the need now of a statutory provision to enable the lower rate to be reverted to. "The change is necessitated by the fact that in these clays revenue is not as buoyant as it was in more prosperous times, and the adjustment is necessary unless recourse is to be taken to less pleasant expedients, such as, for example, the striking of a rate. The change made to the bill by the Local Bills Committee embodies this reversion to the original rate of the sinking fund."

GROWING SMALL FRUITS AUSTRALIAN COMPETITION EARLY ACTION POSSIBLE [BY TELEGRAPH —PRESS ASSOCIATION"] WELLINGTON, Tuesday As New Zealand growers of small fruits were suffering hardship, tho Hon. A. D. McLcod (Government- —Wairarapa) asked in the House to-day whether the Government would take steps to prevent tho dumping of Australian small fruits into the Dominion. The Hon. W. Downie Stewart, Minister of Customs, said he appreciated the importance and urgency of the question and he was anxious to have the matter settled at the earliest possible moment. Jt would be discussed by the Cabinet at the first opportunity. Mr. W. P. Endean (Government —rarnoll): Give Australia six months' notice of the cancellation of the agreement.

UNITED FIRE BOARD COST TO MOUNT EDEN GUARANTEE NOT POSSIBLE [BY TELEGRAPH —SPECIAL REI>ORT£R] WELLINGTON, Tuesday " Has an assurance been given to the Mount Eden Borough Council that the present cost of the lire brigade will not be exceeded during the next five years if the district corncs within a metropolitan fire district?" asked Mr. A. J. St;\llworthy (Government —Eden) during the Committee stages of the If ire Brigades Amendment Bill in the House to-dav.

Mr. Stallworthy also asked whether a promise had been given that the Mount Eden fire station would not be removed.

The Minister of Internal Affairs, tho Hon. A. Hamilton, said Mount Eden had agreed to the provisions included in the hill relative to tho united firo district in Auckland. The whole scheme was to reduce cost, in all cases, but lie could not give a five years' guarantee that that would be so. It depended on the control exercised by the metropolitan board.

Mr. Hamilton added that as far as he knew it was intended to take, over all the existing fire stations in the extended area. It was later intimated by Mr. W. J. Jordan (Labour —Manukau) that the Oneliunga Borough Council had withdrawn its opposition to the bill in view of tho assurance that the local brigade would not ho interfered with and that the cost to the district would not be greater than under the present system. The bill was passed.