Embarrassed By Surplus Cash-Lyttelton Harbour Board In Happy Position.

Star (Christchurch), Issue 18888, 14 October 1929, Page 9

Embarrassed By Surplus Cash-Lyttelton Harbour Board In Happy Position.

PORT CHARGES AND WHARFAGE RATES REDUCED SO THAT TRADERS MAY REAP ADVANTAGE.

<< npHTS meeting is unique in the board’s history,” Mr H. A Holland, M.P., chairman, said when a special meeting of the Lyttelton Harbour Board was held to-day to consider reductions in rates and charges at port. “ The board,” the chairman explained, “ is embarrassed not by financial difficulties, but by a surplus of cash. It has to consider reducing port charges. After paying £29,650 in interest last year, and placing £16,850 in the harbour renewal fund, and meeting redemption costs on loans, we still have a credit balance of £8304 in cash.

“ Owing to the happy position of the board’s finances, and having got rid of a loan of £2OO,OCX), we have saved in interest and sinking fund £14,000 a year, although we have borrowed other money. “ I am sure that every member of the board will join me in expressing satisfaction at tho fact that the board is in such a position that some reductions can be made. The object of the meeting is to consider in what direction the reductions can be made, to give relief to exporters, importers and ships.’* The board discussed the question in committee. The board agreed to make reductions estimated to total £14,795 a year. The reductions will come into force on December 1 next. Following are the reductions, with the estimated annual reduction in revenue on each item:— WHARFAGE. Estimate. Abolish the 10 per cent surcharge on wharfage dues .- £3,400 Reduce general merchandise from Is 9d to Is 6d per ton 2,910 Reduce general merchandise from Is to lOd per ton 125 Reduce frozen meat 6d to 5d per ton 182 Reduced grain, 7£d to 6d per ton 965 Reduce wool 103 d per bale to 9d per bale 596 £BI7B PILOTAGE. Reduce from 2fd in, and 2£d out, to 2sd in and 2id out —10 per cent 1,922 PORT CHARGES. Reduce from 3d per ton to 22d —lO per cent 1,500 BERTHAGE. Reduce *d per ton per day to Id —25 per cent 3,195 £14,795 The lay-up rate still will be 3d (£206). There were present at the meeting— Messrs 11. Holland, M.P. (chairman), E. J. Howard, M.P., H. T. Armstrong, M.P., R. Galbraith, W. J. Walter, F. Horrell, J. Leslie, W. T. Lester, F. E. Sutton. S. L. Parnham, R. T. M’Millan and Captain H. Monro. THE RAILWAYS. Mr C. H. Clibborn, secretary and treasurer, in a memorandum, stated:— Notwithstanding that the Midland Railway has affected the tonnage of goods passing over the wharves, the board’s receipts for the year just closed were greater by £12,987 than for the preceding year. No doubt, if and when the Main Trunk Line is completed to Blenheim, it will also affect the trade of the port. Nevertheless, the board’s finances are sound, and it would seem a favourable opportunity for the board to adopt a policy of reducing its rates and charges to the extent of £20,000 per annum, and so meet the competition of other ports which have reduced their charges, while reducing the cost of transport and production, and attract trade to the port. Board’s Finances. Mr Clibborn stated that, beginning at 1923, after the abolition of the harbour improvement rate, calculating ordinary receipts, loan receipts, transfers and special receipts, repairs and capital expenditure, the bank balances were.— 1923 Credit £214. 1924 Debit £2154. 1925 Debit £37,369. 1926 Debit £18,419. 1927 Debit £18,419. 1927 Debit £12,769. 1928 Debit £12,934. 1929 Credit £3586.

Included in the capital expenditure, 1925-27, is £44,750 for the 80-ton craneship Rapaki, which has been met through overdraft out of revenue. On July 1, 1929, the £200,000 and £60,000 loans matured for redemption. The first was redeemed by accumulated sinking funds on July 1 and the second by sinking fund, plus a redemption loan of £56,800, borrowed at 5$ per cent for twenty years, but redeemable by forty half-yearly payments of £2358 19s lOd each, including interest and principal. To finance the five-ton cranes on Gladstone Pier and No. 3 Jetty, and the reconstruction of No. 3 Jetty, an instalment of the £300,000 loan authorised in 1926, £85,900, was approved by the board in June, 1928. Of that sum. £64,100 has been raised—£s6,soo at 5 h per cent and £7600 at 5i per cent—to date leaving an unissued balance of £21,800 to raise. The annual saving of interest and sinking fund since July 1, 1929, is as follows* £ Annual interest and sinking fund on the £200,000 6 per cent loan redeemed July 1 .. 14,000 Ditto on £60,000 4 per cent, loan redeemed July 1 3.000 £17,000 The annual payment of interest and principal on the £56,800 redemption loan amounted to £4717, leaving a net annual saving of £12,282, available for distribution in reduction of dues and charges. On the rates and charges ruling today, Mr Clibborn estimated the income and expenditure for the year ending September 30, 1930, as follows: Income £126,720 Expenditure 1 00.509 Estimated credit balance on September 30, 1930 .... £25,911 A New Store. Dealing with No. 5 grain store, Mr Clibborn stated:— “ The reconstruction and widening of No. 1 breastwork raises the question whether it is not opportune for the board to consider the demolition of No. 5 grain store, built partly on the breastwork, and the erection of a substitute in another position. The ground on which the store stands is the board’s property, but would no doubt be of considerable assistance to the Railway Department in working the port, particularly the new berths at No. 1 breastwork when reconstructed and widened “ I have reason to believe that such a proposal would be very favourably viewed by the General Manager of Railways, and that his Department would be prepared to give the board the use of an equivalent or a greater area for a new store at Officers’ Point. A new and up-to-date grain store would certainly be an acquisition to the port, if the board intends to continue grain storage accommodation, and large expenditure on No. 5 store will shortly be necessary. I have not mentioned any estimate for the proposed new store, as the board will no doubt desire its engineer to prepare plans, so that the new store could be built, by contract or otherwise, before or during the reconstruction of No. 1 breastwork. Whilst the special renewal fund may be regarded by investors in the board’s loans as a reserve or sinking fund, and it was established by the board for depreciation and replacements, it now stands at over £135,554, and its interest earning power to-day is over £4600 per annum. Thus it might provide the funds for a new store and relieve revenue of that charge.”