Harbor Board’s Financial Position.

Gisborne Standard and Cook County Gazette, Volume III, Issue 452, 10 May 1890, Page 2

Harbor Board’s Financial Position.

A FEW FIGURES TO DIGEST. The following is a statement of the Board's financial (read at last meeting), as given in a letter sent to the Government :— The Board at present owes the loan account lhe sum of £2,769, being amount borrowed to pay interest sent to London, September 1889, and February 1890, less interest, rates, and general revenue received to date. The sum of £5,113 is required for interest to be remitted to London in September. It is estimated that the following will be available for paying this interest. General revenue, net .. £550 Bates to be collected from outstanding .. ..£1.500 New Rates .. .. .. 1,300 Interest on £59,000, 5 mos... 1,250 4,050 £4,600 Less repayment overdraft to loan account .. .. 2,770 Leaving to meet £5,113, the sum of .. .. .. £1.830 Showing a deficiency of .. 3,283

Under sections 11 and 12 cf the Harbors Amendment Act, 1886, it is not allowed to borrow money from loan account to pay interest with, and as this deficiency appears to be a recurring one, it is desirable to face the matter at once. It has been suggested that Parliament should be asked to pass a Bill to relieve us in the following manner: (1). To make a refund of the four instalments, amounting in all to £2360, being one per cent sinking fund on the £59,000 unexpended of the £200,000 loan, and which ■sum was, by Act of Parliament in 1888, taken from the control of the Board, and is now lying in the hands of the Public Trustee, and also four instalments of Sinking Fund paid on the £25,000 which was set aside as a guarantee of sinking fund, and being in hand in same way as the £59,000, requires no sinking fund to be provided for it. This amounts to £lOOO. The refund would be £3360. (2) To relieve us of making further pay ments to this sinking fund on £84,000, being £B4O annually. (3) The Board last year in their Bill included the clause as per copy attached. We suggest that a clausa to similar effect bs included in the forthcoming Bill, and strongly urged.

We recommend that the Board's position be fully disclosed to the Government, explaining our annual deficiency, and asking Government to take charge of a Bill embodying the suggestion of relief os above, and also asking them to make such advances as are required to meet interest until the refund asked is made. The following is shortly lhe Board’s present position as regards interest:— Interest and .expenses to be remitted £10,220 Annual refund .. 1,083 Balance sinking fund .. .. 562 £11,865 REVENUE. Bates collectable ~ ~£5,000 Interest on £59,000 .. .. 2,950 Revenue from whatf, etc., £l2so,intended to be increased £950 ... 2,200 £10,150 Leaving an annual deficiency of £1715 If we get relieved as proposed, our position will be :— Interest and expenses to be remitted £10,220 REVENUE. Rates collectable .. .. £5,000 In erest on £59,000 .. 2,950 Revenue from wharf, ato, .. 2,200 Interest earned by £25,000 sinking fund £1530 Less sinking fund due on £116,000 - .. 1160 370 10,520 Leaving a balance of .. .. £3OO A FURTHER STATEMENT. Since the above statement was presented, we have been supplied with the following additional figures, which will make the position much clearer:— Fixed deposits (in hands of Publio Trustee) .. ..£59,165 18 4 Sinking fund reserved (do.) .. 25,000 0 0 Accrued interest on sinking fund .. .. £BOOO Lass to be refunded to Board .. .. 3000 5,000 0 0 Sinking fund £5OOO. Balance of accrued interest, compound, at 5 per cent, per annum, 25 years .. .. 16,914 1 3 Sinking fund £ll6O. Annual payments with compound interest at 5 per cent, per annum, 25 years .. .. 55,362 4 2 £161,442 3 9 Plant, material and cash in hand 56,340 0 0 £217,782 3 9 Amount of contemplated sinking fund, 1 per cent, on £200,000, £2OOO per annum with compound interest for 30 years at 5 per cent., as stipulated in the original Act £132,908 6 8