PORT OF OTAGO.

Otago Witness, Issue 3755, 2 March 1926, Page 73

PORT OF OTAGO.

REPORT BY CHAIRMAN OF HARBOUR BOARD.

’ Mr John Loudon, chairman of tho Otago Harbour Board, submitted the following report of the board's operations for the year ending December, 1025, to the meeting on Friday afternoon. The year has been an eventful one. not only in the annals of the board, but in the history of the province. Three important works have been brought to completion during the year—viz., preparation of the site for the New Zealand and South Seas Exhibition, Highway to Logan Park, and the Diinedin-Ravensboume duplication. FINANCIAL. On September 4, Captain Coll M'Donald laid before the board a scheme for the development of the harbour, at an estimated cost of £500,000, while on December 10, it was decided to carry out a £350,000 scheme in accordance with the outline which I laid before you. The revenue for the year constitutes a record for the port, the total goods handled (467,883 tons) being the largest for the past 19 years, while the tonnage of shipping (1.046,964 tons) lias only been once previously surpassed. The following is a comparative statement of receipts and expenditure:— RECEIPTS.

Under the special loan account we have expended during the year £19,363 5s Id, the principal items being works in connection with the Rattray street wharf raising and widening, £8307; “D” shed (new), £4BOB (balance); Victoria wharf redecking, £2826. IMPORTS AND EXPORTS. The statement of values of the imports and exports is as follows: 1923. 1924. 1925. £ £ £ Imports* ... 4,878.335 5,290,353 5,921,749 Exports* ... 2.739,320 3,482,791 3,621,646 7,617.655 8,773,154 9,543.395 * Exclusive of coastal trade, no record being kept by the Customs Department. DOCKS. The profit and loss account shows the actual loss on the working of the docks for the year, after giving credit for £I4BB received from rents of endowments, and allowing for £7OO to sinking fund to be £4930 Is 6d. By enuclment, the board and the Union Steam Ship Company are required to pay £IOOO each towards the deficit, and the Port Chalmers Borough Council £500; the balance (£2480) will require to bo met out out of the board’s general account. To make provision for the redemption of the £75,000 and £25,000 dock loans,, which expired, on June 30 last, the board raised a redemption loan of £65,000. which, together with the proceeds of the sinking fund of the £75,000 doal, and a special transfer from the board’s general account, of £10,789 supplied the amount required for redemption. The board was able to secure the whole of rhe redemption loan at 5| per cent., with a currency of 20 years, from a New Zealand institution. Provision is made for a sinking fund of 1 per cent, in connection with this loan. The investments of the £75,000 loan sinking fund were purchased out of the moneys lying to credit in the board’s reserve funds, thereby increasing the rate of interest earned by these funds. In accordance with the agreement, the Port Chalmers Borough Council were again called upon to pay £SOO towards the dock deficit for the year 1924, but consequent on their limited finances it was again decided to waive this contribution. An agreement entered into, in 1905. between the Union Steam Ship Company and the Otago Dock Trust with respect to the company’s contribution towards interest, expires on the last day of this year. The agreement between the Port Chalmers Borough Council and the Otago Dock Trust expires on the same date. In the future, the .hoard will require to bear all the loss on the docks. HIGHWAY TO LOGAN PARK. The board granted the necessary land to the City Council on the condition on their paying any compensation arising in connection with the formation of the highway which is to ba named “Anzac Avenue.” It has a width of 99ft from Union street to Frederick street; from Frederick street to St. Andrew street it has a width of 75ft., and from St. Andrew street to Anzac square tho present width of 66ft is to be widened to 75ft within the time of the Inst expiring leaso (April, 1936). CITY COUNCIL. At the conclusion of the Exhibition, the site will be cleared, aiid in future known as Logan Park —practically a gift frdm the board to the citizens of Dunedin—for the area will be leased to the City Council at a peppercorn rental for 99 years, with a right of renewal for a further period of 99 years. OPOHO CONDUIT. On December 9 the waters of Opoho Creek were turned into the new channel that runs along the eastern side of tho area, and discharges into the Leith Estuary, thus another city improvement was consummated. EDUCATION BOARD SITE. As stated by my predecessor, tho final position of this matter is as follows: In

lieu of the Lake Logau site we offered to tl ■; Education Board an area of eight acres with frontages to the Leith Canal esplanade and 415 ft to Anzac avenue, and this had been accepted by the Education Board. I am very doubtful, indeed, if this exposed situation will be a proper one, and would counsel the Education Board to retain their present site, securing the adjoining sections to give them a suitable area. As every inch of the area comprising the eight acres will be required for shipping and mercantile purposes, it is proposed to meet the Education Board in conference to see if they will not fall in with the scheme before indicated. RESERVE FUNDS AND MATURING LOANS. I feel certain that members will agree with me that it) is highly desirable our reserves should be made as strong as possible, because in 1928 and in 1934 we shall be called upon to renew loans totalling £933,800. This may be considered a long time distant, but we require to look ahead and prepare. If at the date named we have a substantal reserve, added to, say, revenue-producing land with a capital value of £400.000 to £450,000, an t d, let us hope, a buoyant revenue, we shall be able to command the best terms ruling. PORT CHALMERS WHARF. Dual control of any interest is an anomaly, consequently., whilst in Wellington towards the end of the year, I interviewed the manager of the New Zealand Railways, and explained that, in the opinion of the board, the time had arrived when the whole of the wharves in the harbour should be under the control and jurisdiction of the board. . Mr Jones promised to look into the question and to communicate the result as soon as practicable. A sitting of the Railway Board was held in Dunedin on December 17, and along with the secretary and engineer I waited on the board with respect to this and other matters. The chairman (Mr Jones) stated that the payment they would require would be £IOO,OOO, but he could not say whether it would be a cash payment or not. As the price is out of all reason, and in view of our contemplated improvements, you decided that the question should remain in abeyance. RAILWAY DEVIATION. Representations were made to the Minister of Railways for a continuance of the duplication to Port Chalmers, a reply being received to the effect that the department’s engineers were engaged on work with a view to continuing the straightening and duplication to Burkes. RATTRAY STREET WIDENING. The board has, in pursuance of its decision to widen this street, consequent on the erection of additional sheds at Rattray street wharf, acquired all the required frontages, with the exception of Messrs Usherwood and Co.’s. We have had to take the necessary frontage in Messrs Usherwood’s case, under the “Public Works Act.” SOUTH ENDOWMENT AREA. On October 21 the Railway Department made application for an area of approximately four and a-quarter acres, between tie Public Works area and Colston street, Anderson’s Bay road, which it requires lor a local goods railway yard extension. On being requested to state what compensation it was prepared to pay for the area the manager of the railways advised that the land would be taken under Section 141 of the “Harbours Act,” which slates that where land is taken for railway purposes such compensation shall not exceed the amount which the board has actually laid out upon the said land, either for cost of reclamation or otherwise in permanently improving the same. The taking of this area by any other means than under the “Public Works Act” we strongly resent. Representations were made to the Prune Minister during his visit to Dunedin, and a promise was received that the board would get a “fair deal.” Subsequently, an interview took place' with the Rad way Board, during its sitting in Dune lin. at.(l the best offer the board would make was £2OO per acre for the land taken. As the area in question, based on the lettings of contiguous land, would have a capital value of approximately £SOOO. the department s offer is most inequitable, and it. is proposed to make further representation to the Prime Minister. As the department is anxious to get on with certain work therewith, and as nothing will be gained by obstructive tae tics, it has been decided to give the necessary permission for the department to being possessed of the area, without prejudice. STAFF. In conclusion, I should like to say that in my judgment the board possesses an excellent holy of employees, anl that a line spirit of loyal service extends right through the staff. Our chief executive officers (Mr W. J. Bardsley, secretary, Mr J. M'Gregor Wilkie, engineer, and Captain J. Mac Lean, harbour master) are keen and alert in all that interests the board, and have carried out their respective duties in nn able and faithful manner.

1923. 1924. 1925. £ 9. <1. £ s. d. £ s. d. 140,662 3 6 153,312 11 8 Miscellaneous— 163,535 7 3 7,959 4 1 8,310 12 2 8,627 11 7 148.621 7 7 161,623 3 10 172,212 13 10 EXPENDITURE. £ 9. cl. £ s. d. £ s, d. 64.232 7 10 77,208 17 1 81,224 3 10 Interest on loan?, etc. — 40,672 13 6 48,670 10 10 48,557 7 11 112.905 1 4 125,879 7 11 129,781 11 9 Transfers to clock account, depreciation fund, marine insurance fund, and fire insurance fund: — 1923. 1924. 1925. £ ?. d. £ s. <1. £ s. d. 23,000 0 0 11,300 0 0 17,561 18 0 Transfer to No. 1 loan account— 3,000 0 0 17,706 16 5 19,037 12 2 138.905 1 4 154,836 4 4 166,381 1 11