25

H.—150

duct of the business under their control; nor have they exercised that scrutiny over such information as was received as would enable them to check the progress of the works and their cost, and of the beneficial results obtained therefrom. Harbour Lights and Signals. 66. In the opinion of those master mariners trading to the port whom we examined, the principal harbour light (port light) is neither sufficiently powerful nor distinctive in character. It is frequently indistinguishable from other lights in the town. In the daytime, and particularly on misty mornings, the harbour signals are not visible owing to the position of the signal-station and the natural background. It has been suggested that the port light should be occulting, and that the signal-station should be made more prominent. Those defects have been made known to the Board, but have not been remedied. Board's Assets. 67. Under section 178 of the Harbours Act, 1908, after audit a statement had to be made of the assets and liabilities of the Board, and since the passing of the amending Act of 1910 an account has to be supplied of all the Board's available assets and all debts. In pursuance of these directions the Board have attached to their annual statements a statement of assets and liabilities, the first portion 'of which deals with cash only. The second portion is headed " Estimated," and gives in pounds sterling, only in respect to structures generally, amounts approximating to, but being less than, the respective amounts that have been expended on the several items. In the case of floating plant, locomotives, cranes, &c, an allowance since the year 1904 has been made for depreciation, but not previously. No depreciation has been made upon any of the structures or other implied assets. The Secretary has explained that the reason for stating the values of such structural assets in this manner, instead of quoting the exact ledger balances, is that they were all arranged under the desire and authority of the Audit Department many years ago, as they preferred the round sum. The Deputy Controller and Auditor stated that the only requirement of the Audit Department has been, and still is, that stated values of assets, which are matters of opinion as distinguished from fact, must be prefixed by the word " estimated," and expressed the view that in such cases it would be better to quote the exact ledger balances. The preparation of the successive statements of assets has been made under a misapprehension. W T ith comparatively unimportant exceptions, the whole of the structural items shown as assets are constructed upon Crown lands not specially reserved or otherwise vested in the Board. Further, a large portion of these assets are under the control of and in the occupation of the Railway Department. Coal-boring. 68 Under the Westland and Nelson Coalfields Administration Amendment Act, 1901, the Board was given power to apply its funds not exceeding £1,000 in any one year "in prospecting for coal on its endowments." This clause appears to be inoperative, as the Board has no landed endowments, although it is endowed with the revenue from certain lands. Under the Westport Harbour Amendment Act, 1912, the Board was empowered to expend an amount each year not exceeding £2,000 " in boring for coal on any part of its endowments, or on any unoccupied Crown lands within the County of Buller." In pursuance of these authorities, the Board expended during the year 1912 the sum of £882 17s. Bd., and to the 31st March last a further sum of £552 3s. sd. A borehole has been put down on the west side of the Waimangaroa River, near the sea, without result, at a site which the Board states was recommended by the Government Geologist. Mr. Morgan attributes the want of success to " the wrong class of machine being used, and their not having a sufficiently high-grade man in charge of the operations." His view is confirmed by Mr. Read, the Government Inspecting Engineer of Mines.

4_H. 15c.