THE OAMARU HARBOUR BOARD

Otago Daily Times, Issue 22325, 27 July 1934, Page 12

THE OAMARU HARBOUR BOARD

TO THE EDITOR. Sir,—Had sagacity played ns dominant a part as reckless optimism in the decision of some of the members of the b°anl at its last meeting, the execution of the proposed scheme, would have been further postponed. Before large sums of money can be profitably expended on harbour improvements, certain conditions must be existent. There must be in sight an assured increase in the volume of trade to pass through the port concerned. This latter premise presupposes the existence of valuable mineral resources, undeveloped potentialities of the soil, in the district reasonably near the sea gate, and the existence of an overseas market that will permit of expansion to accommodate an increased volume of trade. Furthermore, to ensure that that revenue will be remunerative. the harbour -should hold the monoply of service so that a maximum volume of trade will pass through the port. The increased facilities resulting, from that expenditure must be instrumental in promoting an increase of trade to compensate the investors (in this-case the ratepayers) for the capital outlay. Indirectly, it should lead to an all-round increase of wealth by an increase in transport efficiency, resulting in’a fall in commodity prices, because an increase in transport efficiency means a lowering in the cost of production. What are the facts of the position? As there is a glut in the supply of our primany products in the markets of the world, there is at present no prospect of an urge to' increase those supplies by more intensive cultivation, so that there is not likely in-the near future to be an increase in the

export of produce through T*ort Oamaru. The non-existence of mineral .resources," the artificial high land values, and the lack of potentialities of the hinterland militate against an all-round increase in the volume of trade, and these factors determine an ■ increase in the population which is essential if the volume of trade is,to increase. Furthermore, Timaru and Dunedin'both compete successfully with’ Oamaru for export and import trade. Oamaru can , never hope to compete with Timaru. because Timaru isTurthcr.away from Lytteltomthan Oamaru is'from Dunedin, and — what! is more'significant—the volume of port: trade-in'the case of. TimarU, owing to. the extent and resources of the back country, ih greater than Oamaru can ever hope to achieve. It is proposed to spend' £37,000 on breakwater, improvements, plus £6OOO for dredging of the entrance, so that the additional trade must, to satisfy interest requirements, earn an extra £2150, pins maintenance charges. But the Harbour Board is still in debt to the extent of £215,000, which costs the ratepayers £B6OO per annum for interest, and £2OOO for the sinking fund. Borrow, boom, burst! Would any financier worth his salt augment his .own indebtedness if the return from the additional expenditure is like a bankrupt’s unrealisnble asset—the elusive x. A wise general, before advancing into enemy territory, always consolidates his position. Did; the enthusiastic exponents . of- this scheme,-, to safeguard : the ratepayers’ hard-earned investment, take the trouble to' ascertain whether,' the improvements having been made, shipping companies would send increased tonnage into .the port? If there is ho increase in the volume ' and value of ■ expqi’ts, there is no need for additional ships to enter. Whether Horae liners visit the port- depends upon the decision of a committee in Wellington, not upon the wishes of the Oamaru Harbour Board. It was. clearly the duty of the enthusiasts to report to the representatives of the ratepayers whether they had approached the shipping companies and - the, committee in Wellington to ascertain whether they were willing to co-operate. Apparently there was present at the fateful meeting only one member who was afraid to rush in where angels fear to tread. Hie fear in this instance merits the gratitude of all the ratepayers. Mr Hayes, always the careful guardian of the country ratepayers’ interests, must have been a. very disappointed man when, having the courage to oppose the scheme single-handed, be did not get the support of another country member, especially when the bulk of the board’s revenue from rates, rents, and exports is derived from the country. It is edifying to I reflect on what' the financial plight of the Harbour Board will be if. as is most ( probable, the unsatisfactory state of the Home market continues. 1

Apparently the Oamaru Harbour Board is to act as fairy godmother to its sister, the Timaru Harbour Board. The sister board was shrewd enough to condescend to lend the Oamaru Board its dredge for four months at the peppercorn rent of £6ooo—surely an acceptable Christmas box for the ratepayers of Timaru. The assertion that coastal boats during bad weather cannot enter Oamaru must he viewed circumspectly, because the same condition of affairs obtains at Timaru, and even at the ports favoured with the best harbours. ' Another speaker stated that the expenditure of £32,000 was absolutely necessary to maintain the present coastal trade, but the plain fact of the matter is that the port is catering very well now for coastal vessels. The Union Steam Ship Company is sufficiently business-like to maintain a fleet of coastal vessels to cope - with Die requirements of Oftumni and other similar ports. It knows its business sufficiently well to exclude competition. . . , Some of the old identities have hitter memories of an “Alice in Wonderland' pumping scheme which, launched with the same enthusiasm ■as that of last Thursday, cost the ratepayer* only the modest sum of £IO,OOO, and like a bogus art union ticket, drew a blank. T am, etc., Dttoald M Ki.osn.