HARBOUR BOARDS.

Otago Witness, Issue 3757, 16 March 1926, Page 36

HARBOUR BOARDS.

CONFERENCE CONCLUDED

The Harbour Boards’ Conference was concluded on the Bth, the principal business being the discussion of the remaining remits. Several clauses in the executive’s report were also dealt with and adopted. Mr H. D. Bennett (Wellington) moved the following Wellington remit:—“That as, except in the case of taxpayers liable to over 4s 6d in the £, investors in harbour board loans pay income tax only on their debenture interest at their own appropriate rate (if any), the Government be asked to abolish the present nominal debenture tax on local body debentures.” Mr Bennett pointed out that prior to April, 1924, the income tax on interest derived from local body debentures was 2s 6d in the £, and since that time it had been fixed at 4s 6d. This did not mean, however, that an arbitrary rate of either 2s 6d or 4s 6d per £ income tax was levied on local body debenture interest. It meant only that investors in local body loans if taxable, were assessable at their own appropriate rate of income tax and, if exempt, were not liable at all. In other tne investor paid on interest derived from local body debenture*, up to 4s 6d in the £, at whatever might be his assessable rate. If, on the other hand, he was taxable at, say, 5s 6d per £, (hen on so much of his income as was derived from local body debentures, he paid at tho rate of 4s 6d per £. Evidently, tl»i» apecial form of taxation was originally meant to popularise local body debenture*, but its effect had long been minimiasd by the change in the finan cial market, and it was no longer a help to local nor was it an advantage to ieveatora, excepting those paying a higher rate cf taxation than 4? 6d in the £. As, from exponent large income tax payers did not inra4 local body debentures, it would seem that this special form of taxation was of i>«% use to anyone and could very well be entirely abolished, leaving the investor to pay income tar on his debenture in Wert in the same way as he did on his mvft ordinary income. If this special form of taxation were abolished, all doubt and difficulty would be removed. As it was now the probable investor was -sonfused, and the actual investor from time to time was unsettled.

The following figures were taken from a return prepared by the board in connection with one of its earlier loans to the public: Of 120 debenture-holders, 65 or 54.17 per cent., had incomes under £SOO, and 55. or 45.83 per cent, had incomes over £3OO. This return was prepared from information obtained when the debenture tax rate was 2s 6d in the £ Now that the rate was 4s 6d in the £ the result made clear by these figures was proved beyond question. It was therefore suggested that the pre cent special tax on local body debenture interest, being principally a nominal rate only, snould be abolished, leaving the investor to pay taxation or his debenture interest at whatever rate be was liable. The remit, seconded by Mr F. Horrell (Lyttelton), was carried. The following Nelson remit was adopted: 4 That in view of the present restrictions placing limits on the investment of har bour board funds, the Government be requested to allow harbour boards to invest at interest larger amounts, than the present limit Savings Bank.” Mr Moller submitted the following Otago remit, which was adopted:—“lhat section 128 of The Harbours Act, 1923,’ be amended to provide that eontrai need not be made where the ayiount is less than i j (£SO i now the limit).” “That section 45 of ‘The Harbours Act, 1923,’ be amended by adding the* following sub-section(9) Any meeting whether ordinary or special, may be adjourned, and the adjourned meeting shall be deemed to be a continuation of the original meeting,” was further Otago remit, which was presented bv Mr J. Lou i, who pointed out that doubts had been raised whether a special meeting called to consider a proposed by-law might legally be adjourned, e.g.. to alloy? of further con sideration. Tne remit was proposed to remove such doubt.—The remit was adopted. “That harbour boards may, with the approval of the Minister of Marine, from time to time prepare and publish handbooks abstracts, or other publications, containing information-i nd matters of interest relative to the history, administration, or affairs of the board” was anoth~ Otago remit spoken to by Mr Louden. Mr H. R. Mackenzie (Auckland) moved an amendment that the words “and to ad vertise in suitable journals” ' * added to the remit, and the motion in its amended form was adopted. Motueka Board forwarded uic following remit:—“That, in view of the inability of small harbour boards to provide themselves with the necessary nlant, the Government be requested to purchase a sea going dredge, which may be hired out for such necessary works as may from time to tim be required.” Mr P. G. Moffat (Motueka), who moved this remit, said that his board considered that this matter should be made national, as many of the smaller harbour boards found great difficulty in obtaining suitable dredging plant. The remit was supported by Messrs A. T. Christensen (Patea), T. P. Hughson (Opunake), and H. R. Duncan (Nelson), and was adopted unanimously. Mr W. Gow (Otago) moved that December be substituted for March in section 100 of tho 1923 Harbour Act.—lt was decided that the matter be sent forward to the executive for report and with power to act. Mr H. R. Mackenzie (Auckland) moved: “That this Conference support the proposal of the Municipal Conference that members of a municipal body should hold office for three years, and that, in the event of legislation being enacted to that effect, any necessary modification be made in The Harbours Act.’ ’’ —Mr D. J. _ M'Gowan (Wellington) seconded the motion, which was carried. HARBOUR BY-LAWS. Mr J. P Kenny (Napier) moved: 1. “That the following words, viz., ‘ln respect of duos payable or belonging to tho board, and tho collection thereof,’ which appear Immediately before section 226 (42) be repealed and tne following words substituted. in lieu thereof: ‘ln rospect of dues manifests, bills of lading, time of shipment, and/or unshipment of goods.* 2. “That after 226 (48) the following be added: *226 (49). Prohibit under penalty the master of every ship from receiving

any goods aboard his ship unless same is accompanied by the shipping note or other account of goods as required under section 226 (47), and that suen shipping note or other account of goods has thereon evidence stamped or otherwise showing that the same has been sighted by tne harbour board.’ **

Mr Burnett inquired if the Napier Board had had any trouble in this respect, as he had not'heard of any difficulty arising in connection with other harbour boards. Mr Kenny said that the great trouble was in vetting manv of the masters to present their boat notes. The motion, which was seconded by Mr Ellison (Napier), was carried. Mr C. G. Macindoe (Auckland) moved: “That the Government be requested to bring down legislation permitting local authorities which have adopted the scheme provided by the ‘Local Authorities’ Super annuation Act* 1908.’ to come in under the National Provident Act.” Mr H. R. Mackenzie supported the motion, which was carried. EXECUTIVE’S REPORT.

Various clauses of tho executive’s report were dealt with and adopted In regard to the paragraph dealing with test actions, Mr J London (Otaco) moved, and Mr C. G. Macindoe seconded: —“That the question of the association joining in any legal actions initiated by an individual board or a member of the board, shall be left in the hands of the executive, and the contribution, if anv, to be made by the association towards the cost theroof shall be arranged by the executive.” —The motion was carried.

ELECTION OF OFFICE-BEARERS The election of office-bearers of the executive resulted as follow®: —President., M r Maurice Cohen (Wellington): vice-nresi dents—Messrs J Loudon (Otago), H. RMackenzie (Auckland) and W- J (Lyttelton): members—Messrs O. Ellison (Nanier) C. E Rellringer (New Plvmouth). A G Bignell (Wanganui). Walter Harman (fimard. Capt Cbas M‘Arthur (Wellington). Mr A G Barnett was re-eWted secretary of the association and Mr rl. l-<-Nicholls was appointed auditor.. NEXT CONFERENCE.

It was decided that the next conference of the association be held at. Auckland.