PURCHASE OF NEW DREDGE

Wanganui Chronicle, Volume 90, Issue 116, 21 May 1946, Page 4

PURCHASE OF NEW DREDGE

LOAN BOARD APPROVAL NECESSARY CHECK ON EXPENDITURE Before the Wanganui Harbour •Board can purchase its new dredge approval must be obtained from the Government Loans Board, even though the Harbour Board does not intend to raise a loan fcFr the dredge. This information was conveyed to yesterday’s meeting, of the Harbour Board, when it was stated that the information sought had been given. Technical details of the new grab hopper dredge to be acouired are being supplied to the Public Works Department and the Marine Department. both of« which will be rpto submit reports to the Loans Board. Further information is reouired by the Loans Board, however. The hoard wanted the name of the loan out of which the Kaione was originally purchased and advice on the present position of the loan—e.g., now converted, or nart of a suhseouent renewal loan. “It is noted that the liability of your board to the Admiralty in respect to the Kaione is being repaid bv equal annual instalments of principle and interest, and in view nf the fac< that the rate of interest is 4 p.c., on which exchange is payable, would you nlease indicate whether -your board has considered using nart o r the purchase money received in liquidating that liability?*’ asked the Loans Board. “It would seem that there would be a considerable saving to your hom’d if Ibn admiralty claim were paid in full, even although a new small loan mav be necessary to complete the purchase of the nev' dredge “As regards the new vessel, would vou indicate the latest cost 1o the board, showing how the amount is arrived al. and on receint of this rdcUlional information, further consideration will be given 1o the application.” f'e letter concluded. The information <bven in reply to ’his was that the Kaione was purchased out of the Port Development Loan. 1914, of £l5O 000 at 41 nr which was converted together with other loans to £339,600 (1934), convers'on at 41 p.c , matures on Anvil 1. 1955. The amount owing at September 30. ’945 was £330100 and Ihe accumulated sinking fund £22,179 16s 3d. In connection with the Admiraltv claim, it was agreed unon bv the hoard to nav annual ic- prin- ? no] anrj interest, of FII9G 18s. Tl>/x tnfal nn«:t nf the new drp-lgn. -£44,000- -will be made up as fol-

low*: The hull (to be built in N.Z.). £28,000; propelling engine £5000; Priest crane and gear, £ll.OOO. “It seems a funnv position to me that the Loans Bon rd has to authorise this sort of thing” cemented Mr. W. Morrison. “We bought the Kaione with our own monev, sold her. and w.H be buving a new dredge with our monev if we were going for another loan it would he a fr’<*rent story, but this case semns rather unnecessary overlapping ” “Ils in the Act that before capital money can be snent this check has Io ho mede.” stated the secretary, Mr. I. Hn'iditch. i ‘lls a wise precaution, too." eom-imniite-i the Hon. W. ,T. Rogers. M.L.C., whn said some surh rnplrol was nepdM In s«o that exnendilnre was not inIfluenccd by personal interests.