OPUNAKE HARBOUR

Taranaki Daily News, 3 June 1933, Page 9

OPUNAKE HARBOUR

FINANCES UNDER REVIEW ESTIMATES FOR THE YEAR. SLIGHT REDUCTION IN RATE. Estimates for next financial year were considered by the Opufiake Harbour Board yesterday with a view to fixing the amount of rate necessary to provide sufficient revenue to meet the board’s expenditure. ' ' ;' ; ' Revised estimates for the year ending September 30, 1933, were submitted as follows:— ■ Receipts: Rates for year ended April 30, 1933, £2750: rates from previous years, . £9oo;' 10 per cent penalty, £100; insurance defalcation, £116; rents from reserves, £240; estimated deficiency, £607; total, £4713. Payments: Overdraft, September 30,v 1932, £1285 12s Id; salary, £168; office expenses, £l5; advertising, printing, sta- - tionery, £45; insurance, £5; reserves, £5; water service, £35;. house allowance, £l3; subscription Harbours’ Association,' .£2 2s 6d; rates, £5; audit fees, £45; bank interest, £3O; loan adjustment expenses, £150; travelling expenses, £2O; cost and confmission on rate collection, £120; loan interest, one year to May 1, 1933, £2200;, sinking fund, £550; contingencies, £l9 5s sd; total, £4713. * The estimates for the year ending September 30, 1934, were as follows:-— Receipts: Rate arrears and penalty, £600; reserve rents, £200; sundries, £10; amount to be provided from rates, £2934; total, £3744. Payments: Estimated deficiency, £607; salary, £160; office expenses, £l5; advertising, printing and stationery, £4O; insurance, £5; reserves, £10; water service, £10; rates, £5; audit fees, £l2 12s; bank interest and charges, £35; contingencies, £l9 8s; cost and commission on rate collection, £75; interest, £2200; sinking fund, £550; total, £3744. REPORT REVIEWS YEAR. The annual report submitted by the secretary stated that the difficulty in estimating under present conditions was no doubt appreciated by all. The uncertainty of how much would be collected in a certain period, and also the amount of rates that might be irrecoverable on properties reverting to the Crown or natives as mortgages or owners were facts which could not be ascertained, and to safeguard against these possibilities adequate provision- had to be made. In the revised estimates he had endeavoured to make ample provision for losses in this direction. The amount nec- -• ■ essary for certain items of expense such as extension of the loan .was also . difficult to ascertain. If therefore the same rate was struck, provision would be made to clear off the whole of the overdraft and build up a reserve to meet the following November payment which was in his opinion essential as well as for providing for certain rates that would not be collectable. If the board desired to avoid the necessity for a bank overdraft it must bear in mind that a portion of the rates would be outstanding on May 1 next, and although. .they .might subsequently be recovered; the proceeds would not be available for payment on that date. On the estimates submitted, which provided for payment of the overdraft in full, the amount necessary to provide for in the present year’s rates was £3084. v The matter of outstanding rates was discussed at length, the .difficulty being the uncertainty as to how much would be collected in the financial year. Mr. Prosser moved and Mr. Hughson seconded that the rate be the same as last year. ■ , ■■ ■ , . QUESTION OF ACCESS. Mr. Sheat suggested that the finance committee should go thoroughly into the; question of arrears, and see whether steptf could be takeri. to enforce payment. He considered that ‘ it would be unfortunate if after obtaining concessions they had to. strike the same,rate as last year. He urged that the striking of the rate be held over until they had seen what arrears could be collected. The chairman (Mr. Hickey) stressed the importance, of striking a rate adequate to meet the liabilities. He did not want to run the risk pf having to default to the bondholders 'after the way they had met them. Finally the mover and seconder agreed to amend theii resolution that the rate . be 1 22-32 d in the town and 18-32 d in the county. This would give a reduction of 3-32 d in the town and l-32d in the county. Mr. Sheat moved an amendment that the rate be 1 19-32 d in the town and 17-32 d in the county. He contended that some substantial relief should be given the ratepayers from the intolerable burden of the harbour. All he suggested was that the board pass on portion of the benefit derived from lower interest Mr. Pettigrew. said they were all anxious to do it, but could they safely do so? The grnendment lapsed for want of a seconder. Mr. Sheat then moved a further amendment that the matter be deferred until after the penalty is imposed, the finance committee then to: go> into ' the ' question of rate-arrears and report at a special meeting; also that the bank be approached with a tiew to discovering what amount of accommo- • dation it would give during the current year. This amendment also lapsed. The motion was carried, only Mr. Sheat voting against it. It was explained that the resolution would have to be confirmed at a special meeting. Further business regarding the agreement with the debenture-holders was considered, and a circular to the deben-ture-holders regarding the signing of the deed was approved.