LOAN OVERDRAFT

Timaru Herald, Volume CXLV, Issue 21180, 29 October 1938, Page 8

LOAN OVERDRAFT

Timaru Harbour Board

Members Express Concern

Concern at the fact that the Timaru Harbour B<?ard had spent more money on the harbour Improvement plan than had so far been raised from the sale of loan debentures was expressed at the monthly meeting of the Board yesterday. The overdraft on behalf of its loan is at present £7700, which some members considered did not warrant alarm at present. The discussion on the Board’s financial position arose following a report by the chairman.

Members would note from the Financial Return that the expenditure on loan work as at 30/9/38, had ’xceeded the amount raised by the sale of debentures by £5559/2/2, said the chairman, Mr F. R. Flatman, In his statement. This sum had been found from surplus revenues and from the sum being accumulated to meet the large Equalisation Fund payment due on March 1 next. After providing the sum of £5592/2/- there remained in the Revenue Account a credit balance at the Bank of New Zealand on 30/9/38, of £3797/4/9. Accounts Met During the month of November the following accounts would have to be met on behalf of the Ioan: Locomotive £Boo,' rails and fastenings £2OOO, quarry crane £5OO. quarry land £5OO. Dredge No. 350 £6500; the total was £10.300, leaving an overdraft of £7700. General expenditure on account of the loan for wages and small accounts was estimated to reach £l2OO. That meant that by November 30 the loan would be overspent by an amount of £17,000 unless farther sales of debentures were made.

The following was the actual revenue received for the 12 months ending September 30, 1938, the estimated revenue being given in parentheses:—Ships’ dues, £15,026 (£15,000); water, £l5O (£250); wharfage, £10,902 (£11,700). a drop of £800: rents, £3866 (£3800); slipway £BO (£70); sales old gear, £lOO (£50); hire plant, £ll5 £150). Position Not Serious While the overdraft was £7700 the position was not serious, stated Mr R. S- Goodman. An overdraft of that amount had been experienced several times in the past, and he considered that. at .September 30, 1939, the overdraft would not exceed £14,000. The Board should wait two or three weeks to find out if it would receive more loan money, and If it received no more money it would have to close the work down. He suggested there should be more advertising of the loan, and then if that failed a deputation should be sent to the Minister to discover the position in regard to the loans. First they must find the result of the appeal through the advertisement, and then they must see the Treasury.

“I am inclined to think we are getting Into debt and beginning to drift,” said Mr W. Lindsay. He understood at the last meeting Of the Board that a decision would be made at this meeting. They could not go past the figures supplied by the secretary. The chairman pointed out that It was Intended to hold a special meeting early in November, when they could place the whole matter In detail before members. He was as anxious as any of the members that the finance should not get away, said the chairman. The finance committee would prepare every possible detail for the special meeting. He had no desire to hide anything in any shape or form. The Board was not receiving much in income, and would have to go very carefully if it did not get the loan money, said Mr Lindsay. Had the expenditure exceeded the £29,000 loan money already received? asked Mr Campbell. Mr Flatman said it had by £5500.

Mr Campbell agreed with Mr Goodman that there was no great hurry. The Board should see what response was made to the advertisement, and then it should approach the Minister of Finance.

It was decided not to hold the special meeting to discuss the Board's finances but to bring down a comprehensive report at the next meeting.