COOL STORES AT PORT CHALMERS.

Otago Witness, Issue 3396, 16 April 1919, Page 22

COOL STORES AT PORT CHALMERS.

HARBOUR BOARD'S INTENTIONS

It was reported at the last meeting of the Harbour Board that satisfactory arrangements had been made for finance to admit of the erection of freezing works and cool stores at Port Chalmers. The proposals of the board with .reference to this matter have been dealt with generally in committee, but wo understand that a loan of £IO,OOO or £II,OOO from one of the State departments at 5i per cent, has been arranged for. The past history of the cool stores at Port Chalmers has been somewhat unfortunate. The actual loss to the board over the period of five years on the basis of the book values of the buildings will hardly have been less than £SOOO. In 1917 the lease was renewed to tho same tenant at £SOO per annum, and the tenancy expired this year upon tho Government condemning the works. In these circumstances the wisdom of the policy of the board in proposing to expend £IO.OOO or more upon the works has been questioned. Mr. J. Loudon, the member of the board who has taken an active part in the advocacy of the policy which the board has decided to adopt, holds that the financial results of the working of the stores_ in the past are not of any service in guiding the board in connection with its present proposal, which is to put tho works in an up-to-date condition to meet tho requirements of the port.. "We are," he says, "just now on the eve of considerable fruit development, and cool storage facilities must bo provided. Ho is convinced that when the works have been put in order tho board can get, by way of rent, a sum covering the interest on a cost of, say, £12,000 plus, say. £4OO per annum ground rent, the tenant to pay siding rent and rates and taxes and a reasonable sum to cover depreciation, tho leases being granted for five-yearly periods. " The reason of any non-success in the past," Mr Loudon says, " is not far to seek. Tho works are not up-to-date and have not been kept in the order in which they should have been kept." If proper E revision is made for the cool storage of Bh, which is part of tho scheme, there, is,

Mr Loudon is told, a party that is prepared to commence straight away a daily fish distribution business right through the provincial district on modern lines as carried out in England and Scotland. Personally he is confident of tlio soundness of the venture, and were ho not a member of the board he would be prepared to make a firm, offer to take the works over on the term* he has mentioned and take all risks.