I.—7a

1881. NEW ZEALAND.

MEMORANDA IN CONNECTION WITH THE NEW PLYMOUTH HARBOUR BOARD INQUIRY (REFERRED TO IN THE SPEECH OF THE HON. MAJOR ATKINSON ON THE SECOND READING OF THE NEW PLYMOUTH HARBOUR BOARD COMMISSION BILL.)

Laid upon the Table l>y leave of the House.

Memobajtoitm showing the Pkobable Loss to the Colony arising from taking over the Liability and Assets of the New Plymouth Harbour Board in respect of a Loan of £200,000, founded upon the Eeport of the New Plymouth Harbour Board Inquiry Committee. Liability. £ £ Amount borrowed ... ... ... ... ... ... 200,000 Less debentures purchased— Out of loan ... ... ... ... ... ... £7,500 Out of sinking fund ... ... ... ~. .. 2,000 ■ 9,500 £190,500 The annual charge for interest on £190,500, at 6 per cent., amounts to ... ... ... 11,430 The present value of £11,430 per annum for twenty-eight years, computed at 5 per cent, compound interest, amounts to ... ... .. ... .. ... 170,285 The present value of £190,500, payable twenty-eight years hence, computed at 5 per cent, compound interest, amounts to ... ... ... ... .. 48,595 Liability as on Ist November, 1881 ... ... ... 218,880 Assets. Unexpended balance of the loan ... ... ... ... ... ... 109,897 Balance in the hands of the Sinking Fund Commissioners ... ... ... £28,410 Deduct amount required to pay interest due on Ist November, 1881 —six months on £190,500 at 6 per cent. ... ... ... ... ... 5,715 22,695 Estimated revenue from land — Sales on deferred payments extending over ten years ... ... ... £26,000 Sales for cash ... ... ... ... ... ... 56,250 £82,250 Assuming that this sum would be receivable in 10 years, in equal instalments of £8,225, the present value at 5 per cent, compound interest would be .. ... ... ... 63,511 Assets au on Ist November, 1881 ... ... .. 196,103 Deficit ... ... ... ... ... £22,777 Note. —The above statement includes the cash balances on 16th July, 1881. No allowance is made for interest oa these balances from 16th July to Ist November, 1881; but if such interest were allowed, and if the land revenue accrued within a shorter time than ten years, the deficit would be proportionately less. If the revenue from sales for cash accrued in five years in equal instalments of £11,250, the deficit would be reduced to £17,506. Memobandttm of the Probable Loss on the same Account, assuming that the Outstanding Debentures of the Loan would be purchased, say, at £112 for every £100. To purchase the debentures outstanding, amounting to £190,500, at 112 (assuming they £ £ could be now purchased at that rate, which is more than doubtful), would require ... 213,360 Amount of cash in hand, — Balance of the loan ... ... .. ... ... ... £109,897 In the hands of the Sinking Fund Commissioners ... ... £28,410 Less interest due Ist November, 1881 ... .. ... 5,715 22,695 132,592 Estimated revenue from land, as in previous statement, £82,250. Assuming that this sum would be receivable in ten years, in equal instalments of £8,225, the present value, at 5 per cent, compound interest, would be ... ... ... ... ... ... 63,511 196,103 Deficit ... ... ... ... ... £17,257 Note. —If the revenue from sales for cash accrued in five years in equal instalments of £11,250, the deficit by this mode of stating the account would be £11,985. If the debentures were purchased at 115 instead of 112, the deficit would be £22,972 instead of £17,257 ; or, if the land revenue accrued in five years, £17,700 instead of £11,985.