LOAN PROPOSED

Taranaki Daily News, 15 March 1935, Page 7

LOAN PROPOSED

£12,000 APPLIED FOR HARBOUR IMPROVEMENTS EXTRA RAILWAY SIDINGS . WIDENING OF ROADWAY ■ That the hoard should apply to the Local Government Loans Board for the necessary authority to raise a loan not exceeding £12,000 for the purpose of improving the access to the wharves, the provision of additional railway sidings and the provision of another electric crane was the decision reached at a meeting of the New Plymouth Harbour Board yesterday. An estimate of the allocation of the loans moneys disclosed that £4OOO was set aside for the improving and widening of the approaches tb the wharves, including the widening of Breakwater Road. Of this amount the New Plymouth Borough Council will contribute £l3OO, leaving the board’s liability at £2700. Alterations to the railway track for which the board will be responsible is estimated at £9OO. New sidings from the wharves are provided for in the scheme at a - cost of £2500. The new crane is estimated to cost £4500, and provision is made for other contingencies by the allocation of £l4OO, making the total loan £12,000. ' The chairman, Mr. C. E. Bellringer, traced the negotiations that had taken place between the board and the other parties interested in the scheme, the Railway Department, the New Plymouth Borough Council and the shipping companies.

There were several reasons why the work should proceed, and all were important to the board, said Mr. Bellringer. As the approaches to the wharves were railway property, the board in 1928 entered into an agreement with the Railway Department whereby at the end of five years the board would do certain work on the Breakwater Road and provide additional railway facilities in exchange for the property forming the approaches to the wharves. EXTENSION OF PERIOD. At the end of the period the board asked the department for an extension of the agreement for a year on account of the uncertain state of finance generally and the lack of urgent necessity for the work. A second extension was sought at the end of that period. The board had set up a committee to investigate the position, and it had decided that the time had arrived when the work must be carried out. The board had negotiated with the borough council and an agreement had been entered into under which portions of property would be exchanged and the road from the hotel to the port completely changed and the narrow bottle neck bend eliminated.

It was very desirable to make improvements to the road and give additional facilities to the railway to handle the exports and imports of the port. It was necessary for the board to provide facilities that would permit the working of a large number of vessels at the same time. It was not fair to keep a vessel arriving direct from Britain waiting for a berth. Quick dispatch would overcome this.

A conference of representatives of the meat and butter exporters, shipping companies and the Railway Department made it evident that the board would have to provide facilities that would make it possible to'handle the cargo without delay. A new siding wduld do much to overcome this difficulty, and provision was made for sidings estimated to cost £2500.

It was necessary to alter the general approaches to the wharves. The board bad to meet the pressing needs of today, and the straightening and widening of the Breakwater Road would entail a great deal of work and the expenditure of £4OOO, of which the council would contribute a third, the board’s liability being £2700. The line would have to be regraded and this would cost the board £900,' while the new sidings would have to be provided at a cost or £2500. This work would cost the board about £6lOO. ONE CRANE NOT SUFFICIENT. “It has become manifest to us that one electric crane is not sufficient,” said Mr. Bellringer. Last year the craneage dues amounted to £B6B and the cost of working £350. This left the board a balance of £5lB for the payment of interest and depreciation.. The crane had proved a signal benefit to the board but was not sufficient to cope with the requirements of two or three ships. The shipping companies had stated that the crane had been responsible for the saving of a day and sometimes two days in the dispatch of a boat. The companies were quite unanimous that the board should provide an additional crane, and consequently the board must consider the matter. The crane was estimated to cost £4500. The alterations at the port and the provision of- the crane involved the expenditure of £10,600, and £l4OO was cut off for contingencies. The board should apply to the Loans Board for authority to borrow £12,000. Many might urge that there was not full-time employment for the crane, he said. That was so, but many of the Dominion’s ports had had to provide amenities that did not return the necessary sinking fund and interest. If the port could give a quick and effective crane service it would stand the port in good stead to meet competition. They should let the shipping companies see they were endeavouring to giye ’a service second to none. The diversion of one ship from New Plymouth would entail a loss that would more than pay the interest and sinking fund costs on the crane.

The board would have to act quickly as far as the road work was concerned, as it was necessary to have it completed before winter, he said. The railway plans showed the railway line would be 7 feet below the surface of the road, and ibis entailed the moving of a considerable amount of spoil. The removal of 53,000 cubic yards of earth from west of the railway line and 10,850 cubic yards east of the line would result in the reclamation of a considerable area of land below the present railway line and including the property occupied by cot.tages. . , Now was the time to proceed with the work. The borough engineer would draw up the plans and the work would be carried on under the supervision of the Harbour Board’s foreman; Mr. J. Hawes. The board’s steam shovel would be used. The work could be done at very reasonable rates as far as finance was concerned. Mr. E. Maxwell seconded the chairman’s motion for the necessary steps to be taken to set .the work in train. He felt that the board was not justified in these times to enter into more expenditure unless it was essential. The work was part of an undertaking connected with the provision under the loan of extra accommodation at the wharves. The arrangement with the Railway Department was such that if the board failed to carry out the work by September it would forfeit its rights to the approaches to the wharves. Mr. Bellringer; Hardly forfeit.

Mr. Maxwell: We have no choice; wd have to do it by September. The additional facilities for working the wharves could not be acquired without the earthwork being done, he said. Quick dispatch of ships should be the aim of the board, and although the times were not fortunate to do such work times were favourable for finance, and loans could be arranged at a very low rate.

“I know there is in certain quarters a nervousness on the part of the ratepayers as to the danger of an increase in the rate,” said Mr. D. J. Malone. To him the great danger lay in the loss of revenue through the lack of modern facilities, he added. If they had the facilities they could make the port pay. The port had reached a stage where it was apparent to all that it must either go on or stand still. The importance of the port demanded progress. Reasonable expenditure would put the board in a position to deal with large increases in shipping. It was not likely there would be an increase in the rates as the additional revenue would more than meet the interest. Mr. Maxwell pointed out that the board would not be required to provide a track'for the crane'. Mr. J. L. Campbell favoured the scheme as it provided a means whereby the board could derive more revenue. I' had been said that New Plymouth was not capable of handling any more produce. The improvements would combat such remarks.

The improvements were absolutely forced upon the board, said Mr. W. T. Wells. Improved access to the port was a necessity.

"The board has considered this scheme from every possible angle, and it is not necessary to make excuses for borrowing the money,” said Mr. H. C. Taylor. After reviewing the facts it became quite evident that the board had reached a point where it must be able to handle the cargo under every condition. "RIGHT THING TO DO.” There could be no doubt that to float the loan was the right thing to do, said Mr. J. H. H. Holm. He would be surprised if he heard other opinions. He supported the scheme for improved approaches to the wharves. If the shipping companies said the alterations were necessary they would have to abide by their decision. In connection with the provision of sidings the board would have to meet the Railway Department’s policy. “As far as the crane is concerned I differ with you,” said Mr. Holm. While he agreed the original crane was doing good work, he did not favour the purchase of a second crane. The figures for the revenue from the crane had. decreased from £964 last year to £864 this year. The figures showed the crane was being used less and less, and the board could not afford to have a white elephant in the purchase of a second crane. "I do not want to stop the progress of the port, but personally I am of the opinion we can do without it,” he added. Mr, Maxwell: I don’t know how you arrive at that conclusion in face of the figures. Quoting from ' statistics he showed the previous three years had shown a steady increase in revenue, and last year a decrease of £96. Mr. Bellringer pointed Out the provision of new sidings was part of the original scheme for the provision of a new Moturoa wharf. When the scheme was completed the sidings and wharf would dovetail in. Increased facilities meant increased trade. In the near future there would be a determined effort to concentrate trade at a few main ports, and unless the port of New Plymouth could offer facilities in keeping with the other pdrts it would have to fight for its existence. They should take time by the forelock and show the interests that all facilities were being provided and the port would become recognised as one of the main ports of the Dominion. It was classed as a secondary main port. They must preserve its status. "We are not buying a crane to-day but are making provision for one when the board deems it necessary,” he said. They could expect no relief from the exchange rate for some years, but this could be counter-balanced. by increasing the port trade. They had to find favour with the shipping ’ companies. The money required with 2 per cent, sinking fund should cost no more than 3J per cent.,.and .this-would entail £6OO a year.An extra ship would relieve the ratepayers of any liability. The means of relief of hard times was progress, not retrogression. As far as .Mr. Holm’s remarks about the crane were concerned, he thought the crane was required, but he was prepared to investigate the matter and listen to the other side of the question. Mr. Holm made a point of the practice of modern ships equipped with their own winches not requiring the services of a crane. Mr. Bellringer: Yes, and some of the modern ships use the crane. Mr. Malone: It is a matter for future investigation. The secretary, Mr. Rennell: It depends . entirely upon the type of cargo. Messrs. Bellringer, Campbell and Holm were elected a sub-committee to make the necessary arrangements in connection with the calling of tenders.