HARBOUR MATTERS

New Zealand Times, Volume XXXII, Issue 7029, 18 January 1910, Page 8

HARBOUR MATTERS

A YEAR’S WORKING OUTLINED. SECRETARY'S ANNUAL REPORT. RECEIPTS AND EXPENDITURE. Tho annual report of Mr H. E. Niicholls, secretary of the Wellington Harbour Hoard, Is an. interesting doouimcint. It outlines Tho chief items in tho board’s history, during the twelve months ended September 30th -last, and summarises the statistics and 'financial results for tho same period. Tho following interesting extracts are talcum from the report:— ACCIDENT AND SICK PAY'. The amount paid for accident pay to tho casual employees during the past year was £316 9s Bd, to the permanent staff £156 Os lid, and for sick pay to tho permanent Staff £l7B 149 3d; in all, £O5l 13s lOd, as compared 'with.£9l2 and ’£Blß in tho two previous years. The accident pay shows a very welcome doorcase, being £472 19s 7d, 'as dompared with £7-11 and £659 in tho two previous yoa.rs. Towards the sum of (£472 paid by' the board in wages as accident pay. the sum of (£284 was 'recovered from tho Ocean Accident and Guarnriiteo Corporation, Ltd., in addition to which that institution has boon liable for death risks, a.nd for sums paid directly to employees, which mu ms have not -passed through the board’s books. In July last the board re’newed its arrangement, with tho Ocean Accident and Guarantee Corporation, Ltd., ‘to insure the men. whose names appear on the pay hooks of tho casual staff under the Workers’ Compensation. for Accidents Act-. Employers' (Liability Acts, and at Common Law up to £SOO in _ respect to any one claim at la 'premium of 3Ss Gd per bent, on the total amount of the wages for tho year. As in the three previous years the hoard itself insured its permanent staff, and seifc aside an amount based « the premia thiat would have bean charged had tho insurance been given to ami insurance company, namely, _ 36s per cent, on office and administrative staff, and 27s 6d per (cent, .on all other branches, ia.s well as thei annual sum erf £SOO, -and debited tha account with the idlaims paid in respect to tho hoard’s legal liabilities. The amount on fixed deposit on September 30th, 1909, amounted to £4176 Os 2d. The board continues its custom of paying its employees, both permanent and casual, half pay from thei time of accident, although (not legally obliged to make the first week’s payment where the incapacity does not last longer than ia fortnight. ; V LIFE INSURANCE DF EMPLOYEES. Tho number )of permanent employees of the' 'board at September 30th, 1909, was 321, of whom 273 had theifr lives insured, ■ towards the premia of which the - Board paid £1,002 & 7d, the total sum assured being £55,640, Or an. average of £204 per 'employee assured. The board’s contribution equals 1.8 per cent, of the total sum_ assured. The matured policies (of nine members of tho staff, 'amounting to £1,980 (19s &d, ore held by the Retiring Allowance Trustees on fixed 'deposit, the amount of added interest at September. 30th. 1909, 'being £lls 13s 6d, or a total (of £2090 19s 2d. TRADE DEPRESSION.

Item the point of view of revenue, the year has not Ween e<> good as the preceding year. Trade has been, dull, almost all olaisses of imports hare fallen off, and although exports generally have been well up to the standard of former year®, hemp has buffeted a further decline. The winter months, from April to August, were tiro worst for many years; the supply of casual labour was im excess of the demand, and the consequent distress was acute. At time of writing, however (November), there are signs of a revival of triade,' and it Oan (hardly be doubted that with good prices' ruling for our exports, the slump in imports Should soon pass away.

Th'o effects of the prevalent trade depression were mostly felt by the board during tho past year in connection with the tonnage of goods i ecerved from British and foreign vessels. The total reached 132,096 tons, as compared with 169,238 tons for the preceding twelve months, ;a- decrease of 37,142 tons, or 21.94 'per cent. Sbarcely less a drop was experienced in the tonnage • of goods received from coastal and intercolonial ports, the figures being 162,111 tons for the year just ended, ns against 187,828 tons for tho preceding year, a decrease of 25,717 tons, or 13.69 per cent. The tonnage of general transhipments declined from 129.690 toms in 1907-8, to 116,034 tons during the year ended September 30th. 1909, a drop of 13,656 tons, equal to 10.53 per cent. Tho combined inward and transhipment tonnage for tthe past year amounted to 410,241 tons, as compared with 486,756 tons for the year preceding, a decrease of 76,515 tons, or 15.7 per cent. The receipts from the Harbour Master’s Department, including berthage rate, adjusted by amounts due to the board at the beginning and end of tiro period, amounted to £23,717, as compared with £23,228 _ in the preceding year. The working, expenditure,. adjusted by amounts dueby board ait beginning and end of period, totalled £4835 as compared’ with £4472 in the previous year, leaving a surplus of £18,882 as against £18,756 in. the p-recedinii period. The capital expenditure of tho department was £477, leaving a net balance of £18,405, as compared with preceding year of £16,957. SHIPPING CONTRIBUTION. ■ If to this gross balance of £18,403 from Harbour Master’s Department and berthage rate, is added the revenue from , harbour improvement rate (£72591 a total of £25,664 is obtained, which represents the direct contribution, on the -part of the shipping towards the standing charges for management, interest, sinking fund, and depreciation _ on the wharves and facilities provided for its use. The harbour improvement rate receipts, adjusted by amounts due to hoard at beginning and end of period, totalled £7259 as against £7932 the preceding year, a decrease of £673, due to the falling off in the import trade of the port. The , berthage rate in like manner decreased from £7526 to £7135, a decline of £391 j explainable by tho Same reason. . AN ANALYSIS. Tho summary . and analysis of tho board’s gross revenue ’forthe year ended September 30th, 1909, shows that tho revenue lias fallen" from £176.709 to £165.422, a. decrease of £11,287 os compared with increases of

£20,173, £14,033, and £10,012 in the three preceding yearly periods. This serious fall is .almost entirely owing to the depression in the import trade which has prevailed throughout' the year. The divei.-.ijn or over 10,000 tons of coal from the chargeable to tho free list, owing to tho taking over of tho Wellington and lianawatu lino by tho Government, accounts for tho loss of over £SOO of revenue to the board; but apart from this, tho falling off in imports aid tho consequent shrinkage of inward wharfage, cranage, .’harbour improvement rate, berthage rate, etc., fully accounts for tho decrease.

Exports have, with tho one important exception of .hemp, been in a satisfactory condition, but from tho point of view of tho board’s revenue they do not redress the balance of the account, the bulk being cither shipped direct from railway truck, or overside vessel and paying, only sixpence per ton wharfage. i In-| ward wharfage has decreased from £59,174 to £44,093, a. decline of £6OBI, and transhipment wharfage has fallen off nearly £7OO, a loss' hardly counterbalanced by an increase in outward wharfage of £163. Cranage has fallen from £4699 to £3680, a loss of £lOlO. Harbour improvement rate has declined by £673, and berthage naito _by £391. Weighing, marking, examining, and cartage all show decreases. Overtime labour has declined from £5115 to £3483, a loss of £1632, and tho revenue for shedding cargo before innd after hours lias fallen from £3289 to £1991, a decrease of £1298, and all other storage shows a- decrease of £734. Slight decreases have also occurred in bond rent, weighbridge charges, and water supplied to shipping, and a serious falling off in rental of real estate, tho figures being £3306 as against £4218. On tho other hand, pressing has increased by £626; wool exhibition charges by £1408; rent of offices and stores £l9B, and interest on fixed deposits by £OO9. There can he no doubt that with (the recovery of tho import market in tho near future the revenue of the board will regain its buoyancy. Tho statement of accounts shows that £9560 was derived from sources ■other than payments either 'by vessels or on merchandise as compared with £9386 and £B7OO in the two previous yeai-ly periods; that the gross revenue derived from importers and exporters for various 'services amounted to £75,640, as compared with £83,752 and £71,627 in the two prior years, ■and that the gross revenue derived from shipping, was £80,222, as com' pared , with £83,571 and £76,204 in the years 1907-8 and 1906-7 respectively. RECEIPTS FOR TWENTY-NINE YEARS.

Tire fotal receipts of the board from the start of its operations on October Ist, 1880, to September 30th, 1900, have been £3,260,993, of which £1,010,014 have been loan moneys. Deducting £350,000 loan moneys borrowed to repay loans maturing in 1907 leaves the net receipts for the twenty-nine years at £3,910,993. Of this total revenue receipts represent £2,184,069; capital refunds, £36,910, and loans £690,014. Of the revenue receipts £169,736 represents the sum ■received during the past year. The expenditure for the twenty-nine years has been £3,160,493, or, excluding loans repayment, £2,810,493, of which. £1,634,349 ihas been . spent on working account, £1,110,279 on capital account, and £65,865 set aside as sinking fund. The. figures for the past year have been: “Working account, £132,710; capital account, £103,734; sinking fuaid account, £4900. The board's public debt on September 30th, 1909, amounted to £688,000, -whilst' the expenditure on capital account- fatter deducting refunds) up to the same date has amounted to £1,073,369, the difference of £385,369 having been: provided out of revenue. The sum of £385,316 has been writtem off the assets during the twenty-nine years aa depreciation. PROFIT AND LOSS.

The .profit and loss -statement for tho year ended September 30th, 1909, shows a small debit balance on the working account of £682. This is mainly due to the unusual . fall in imports, -and the consequent shrinkage of revenue from inward wharfage, storage, cranage, 'harbour improvement rate, berthage rate, etc. This decline of revenue is concurrent with a steady increase of intercut and depreciation duo to the board’s growing capital expenditure, and to these factors, and net to any undue increase of working expenditure, the debit balance is due. The, revenue declined by over £II,OOO, but the working expenses, despito_ unavoidable increases in certain items, e.g., the rises in wages and salaries .sanctioned in 1908 (£2178); to loss over “J” shed fire (£4oo)and to increase in premia for accident insurance (£219); have declined in -a quicker ratio than the revenue, and were less by £11,312 than in. the precede ing year, proving that due - economy has been observed Had the volume of trade been up to the 1907-8 level, the working account would in. nil likelihood have Shown a small credit balance despite the large growth of the standing charges. DEPRECIATION.

The gross amount written; off for depreciation amounted to £37,373 or, deducting £5069 special depreciation, on account of “J” shed firo,_ £32,304, as -compared with ■ £29,259, and £29,093 in the two previous years. Deducting £10,267 tor repairs and maintenance leaves £22,037 as the true net depreciation, or 3.82 per cent, on the ’ total depreciable assets (£576,809). There can be no doubt that this, is not adequate, seeing the large amount of plaint and machinery included in tho assets. There Should he at least a. five per cent, average. Since the board’s foundation, £385,316 has been written off for depreciation, the whole of which sum has heen spent on new 1 works,. renewals and maintenance, THE FUTURE. • In -conclusion Mr Nicholls states that there will be no lack of pressing and important questions to occupy the attention of the board this year. Finance ’and loan flotation are amongst the most important of i the questions-. . The report; concludes:— “’The coming year will, it is hoped, see a revival in the import and hemp trades, and the continued prosperity of the other branches, but it will be unwise to trust to this alone. 'The inevitable growth of the Standing charges for interest, sinking fund, and depreciation, _ consequent upon tho very large capital expenditure to which the board is committed 'for graving dock,, Evans Bay reclamation ivorlts, Waterloo quay reclamation, etc., etc., which works cannot be in-terest-producing for some years to come, make it evident that the time has arrived when the board’s revenno must be largely increased. How tins oau best bo done without unduly taxing the various interests affected is the most immediate question for the board. Tho question of loan flotation is also one which must shortly be Settled. If possible arrangements

Should be made for tho raising of the money by instalments, so as to minimise as far as may bo tho loss of interest on unexpended, moneys. The revision and consolidation of tho board’s by-laws is another matter of importance, whidh cllioulcl not be longer delayed. The supply of copies (running short, lainoflhe'r reprint has just been made, but only enough copies were printed ■to cany on for about twelve months.”