HARBOUR BOARD LOAN.

Otago Witness, Issue 3772, 29 June 1926, Page 50

HARBOUR BOARD LOAN.

FLOTATION LOCALLY OR IN LONDON. MR LOUDON TO CO HOME. At the meeting of the Otago Harbour Board on Friday a communication was received from Messrs Mondy and Stephens enclosing the final copy of the board’s Loan Bill, 1926, under which the board seeks power to borrow £350,000. This money is to be expended on works in the harbour and the building of a new’ dredge in accordance with what ia termed the board's comprehensive scheme. Mr Holler: Do I understand we are going to raise the money in London? The Chairman said he thought the board had agreed to raise the money locally. The resolution was that the money for building the dredge should be raised in .London and the other money be raised locally, if expedient. Mr Moller said he did not think they would get money locally at 5J per cent, when the average rate was 5$ per cent. The Chairman said the question had not been definitely decided. It had first to be decided whether they could raise the loan locally with advantage. If not, they would go to the London market. The Bill had been advertised, and they would go on with it at an early date. Mr Anderson then moved, in accordance with notice; “In view of the change of events with respect to the flotation of the loan locally, and also the future possibilities of the construction of the new dredge within the Dominion, this board is of opinion that no hasty steps should be taken to send Mr Loudon abroad, and accordingly all minutes, reports, and resolutions relating to such trip be rescinded, and the whole question recommitted for further discussion and consideration upon the new condi tions arising from time to time with the new developments of the board’s progress of the necessary improvement scheme.” Mr Anderson said ne had no idea of hindering the scheme or of preventing Mr Loudon going Home by th:s motion, but he thought the class of dredge required here —a sta tionary one with pontoon* —could be safeiy built in New Zealand. He would like to 6ee the work done in the Dominion and increasing employment. They cj should mako the harbour suitable for the 2C,GOQ and 25.000 ton boats now built. Mr MacManus said he would second the motion. He had no desire to question Mr Loudon's ability to do good work abroad, but he felt it would be possible to raise the money required locally. As to the terms for the dredge, he thought they could be trranged just as favourably from here as they could ’>v Mr Ixmdon going Elome. They should also explore the possibilities of building the dredge locally Mr Wilkinson asked to have the written instructions to Mr Wilkie read. If the motion was .tried all the work of their committee for weeks past would be undone and the position would be chaos. He had disapproved of the way in which the scheme was being carried out. Mr Ramsav said he was surprised Mr Anderson had got a seconder for* his motion. At this late stage, after all arrangements had been made, it was very unlan to raise the whole question again. In answer to Mr Cable, tne chairman said local bills had to take their chance and the Government could not guarantee them At the same time he was quite sure that the bill would go through. If they could get it through the committee they were pretty right, and he doubted if it would bo discussed on the floor of the House. Mr Cable said he had always held that they should not go in for the type of dredge they were going in for. The dredge would draw 17ft, ami he thought there would be a loss of time in shifting her for passing ships. He hoped Mr Wiikit, when'he was at Home, would consider dll types of dredges. Mr Driver said he was a new member, but it appeared to him a waste of money to .-end anybody Home if the money was to be raised locally. Iu the dredge, moreover. was to be built here what was the necessity of sending anyone Home? The Chairman said they hoped to gain advantage under the Imperial trade, facilities for work done in Britain by getting the dredge built at Home. Mr Gow said he was surprised that Mr Anderson had brought forward his motion. He did not think they could get the money' locally as cheaply as in London He doubted whether they could get a dredge built here. They would have to import a lot of the material. The board could not be backing and filling all the time. Mr Wilkie wa* at perfect liberty to change his opinion regarding the type of dredge he would favour, and Mr Loudon would be able to give him advice on this important matter. He hoped the board would not stultify itself bv goto" back on its previous decision. Captain M* Donald said this wus an eleventh and a-half hour proposal, and it asked them to shatter all they had previously decided on. He had got plans of all the dredges at Home, and had submitted them to Mr Wilkie. ‘ T’ dredge Mr Wilkie recommended would be lar easier to handle than 222 when * she bad come out here first. They Ind practically the same depth in the channel as th*v had 20 years ago. Voices: No. The speaker &aid he wanted Mr Loudon to go Home to assist in purchasing the dredge. The board already had the powei to raise £IOO.OOO. and even supposing the Bill was turned down by the Government they could still get the dredge, and the dredge was what thev wanted. Mr Moller said lie did not intend to vpte for the motion, but he found no fault with Mr Anderson for bringing it forward. At the previous meeting several members had urged the importance of raising the loan locally, and some had spoken of having the dredgo bqilt locally. A prominent local loan company had recently been showing how the money was kept up, and it had been well answered. It would pay handsome! v to send Mr Loudon Home, and he would go further and suggest that Captain M‘Donald be sent Home with him. He noticed that tho Lyttelton Harbour Board were going to spend £175.000 on a dredge. Members: £125,000-. Mr Moller said that £50,000 was neither here nor there. Looking at tho money market and what they were likely to save, lie thought they ought to send Mr Loudon Home and Captain M'Donald with him. If

they started dilly-dallying with the money market hero they would find themselves paying 6£ per cent. Mr Anderson, in replying, asserted that the drodge required could bo built in the Dominion. If Mr Loudon went Home he had the good wishes of the speaker. Mr Anderson’s motion was lost, only Messrs MacManus, Driver, and tho mover voting for it.