WORK TO BE ABANDONED

Wanganui Chronicle, Volume 83, Issue 92, 20 April 1939, Page 3

WORK TO BE ABANDONED

CONSTRUCTION OF NEW EXPORT WHARF AUCKLAND HARBOUR BOARD DECISION LOAN NOT OBTAINABLE AT GOVERNMENT RATE [ Per Press Association.] AUCKLAND, April 18. Because it has been unable to obtain loan moneys for capital works at the Government prescribed interest rate of 34 per cent., the Auckland Harbour Board decided at a meeting to discontinue work on the new export wharf which is being constructed off the eastern reclamation and adjacent to the export stores being built by the Auckland Farmers’ Freezing Company, Ltd. Between 150 and 200 men are at present employed on the work. Of these, 50 will be dispensed with on Friday and the services of the others will be gradually terminated after that date unless financial relief is obtained. The decision to conclude operations was made on the recommendation of the superintendent. Mr. D. Holderness, who submitted a report on the subject which was adopted. Mr. Holderness said that the Minister of Finance, Hon. W. Nash, had promised to advise the board of the Government's intentions in the matter not later than April 8 but no communication had come to hand. Telephone inquiry to the Treasury on April 6 elicited the information that the matter had not at that date been dealt with by the Minister and that although it was regarded as urgent, it would still be some time before a reply could be expected. “Mr. Ashwin (of the Treasury) again urged that the board should continue the prosecution of its works as he was confident that a solution would shortly be found by the Government," Mr. Holderness said. “I consider, however, that it would be unwise to continue at the present rate of expenditure on capital works without a more definite assurance that necessary loan moneys will be

available to enable the board to meet its commitment,” he said. Mr. Holderness added that if the board accepted his view he proposed immediately to curtail expenditure heavily on the export wharf and breastwork with a view to closing down this and other loan works completely, if an early assurance in regard to finance was not forthcoming. The proposal would unfortunately involve immediate dismissals but only in that way could the heavy rate of expenditure be reduced. Unless earl> relief was given the dismissal of further men would be inevitable. The board adopted the report and decided to notify the Minister of Finance accordingly. There was no discussion. "This matter has been exercising the minds of the board members for some considerable time," said the chairman, Mr. W. B. Darlow, in a subsequent interview. The board had been in communication with Hon. W. Nash on several occasions and he himself had made several trips to Wellington on the matter. The estimated cost of the wharf was in the vicinity of £500,000 and up to the present the board had spent approximately £lOO,OOO. The balance of money to complete the contract was not in sight at the rate of interest permitted by the Local Government Loans Board. “As the public realise, the board, along with all other local bodies, is not permitted to raise money at a higher rate than 34 per cent.." he added. "Although debentures of the Auckland Harbour Board have been sought after prior to any other securities in New Zealand, at this low rate the board has been unsuccessful in raising the necessary finance." In discussing the seriousness of the position with Mr. Nash, Mr. Datiow said that he had pointed out that the board would probably be able to raise the money if the rate was raised but that it would naturally prefer the Government to provide the amount required at 34 per cent. He had emphasised, however, that the board had to have the money and must see where the whole amount was coming from, otherwise he would have no alternative than to recommend the stoppage of work. All realised the seriousness of that step. Mr. Darlow added that it was serious e from the point of view of Auckland -but there was no alternative.