H.—lsa,

Assets. Napier Harbour fixed assets and improvements consist of (a) the Inner Harbour and the Outer or Breakwater Harbour, with the accompanying wharves, sheds, and other facilities ; (b) a railway-line of about 117 chains connecting the Outer Harbour with the New Zealand railway|terminus at Port Ahuriri, together with engines and rolling-stock ; (c) certain somewhat ancient dredges, and other harbour plant, stores, and materials, including a considerable stock of concrete piles, beach protective works, and office buildings and equipment. In addition to these harbour assets proper there is (d) real estate of various values, consisting of reclaimed lands and endowments vested in the Harbour Board. The particulars supplied on the last statement of the Board's accounts issued 30th September, 1926, page 20, and on the estimate for the current year ending 30th September, 1927, attached, may be summarized as follows 1926 1927 (11) FIXHD Assets. Valuation. Valuation. £ £ Plant, buildings, and railway .. .. .. 41,352 40,915 Inner Harbour works .. .. .. .. 49,404 57,657 Outer Harbour works .. .. .. .. 258,041 255,075 Beach protection, stores, piles, &c. .. .. .. 28,102 24,243 Land .. .. .. .. .. .. 376,899 377,890 Reclamations and endowments .. .. .. 257,728 254,830 Totals .. .. .. .. £634,627 £632,720 (12) Cash Assets. The following statement shows the cash assets held at the close of the same periods:— Nine Months to Twelve Months to 30th September, 30th September, 1927 1926. (estimated). £ £ Fixed deposits .. .. .. .. 70,000 69,600 (loan-money) Cash .. .. .. .. .. 622 3,500 Investments .. .. .. .. 300 300 Sundry debtors .. .. .. .. 16,925 16,680 (rates, rents, dues, &c.) War Relief Fund investment .. .. .. 912 930 Sinking Fund investment .. .. .. 105,252 114,400 Cash assets.. .. .. .. .. 194,011 205,410 Fixed assets (above).. .. .. .. 634,627 632,720 Total assets .. ... .. £828,638 £838,130 (13) Liabilities. At 30th September, At 30th September. The liabilities on the above dates are shown as under :— 1926. 1927 (estimated). £ £ Loans .. .. .. .. .. .. .. 656,900 656,900 Overdraft .. .. .. .. .. .. 8,923 10,348 Sundry creditors .. .. .. .. .. 4,486 4,510 Unredeemed debentures .. .. .. .. .. 100 100 Deposits .. .. .. .. .. .. 345 171 £670,754 £672,029 (14) Loans and Contingent Liabilities. The outstanding features in regard to loans and contingent liabilities are the commitments for loan renewals and contracts for works at present in progress. On the Ist January, 1928, loans Nos. 3, 5, 6, and 7, amounting to £446,000, will mature, which, less the estimated sinking funds in hand on that date, will necessitate the renewal of, say, £335,000 as per schedule attached (Exhibit 158). The loan indebtedness will then be as follows : Conversion loan, £335,000 (as above mentioned); No. 8 loan, £197,100 (Inner Harbour loan); No. 9 loan, £13,800 (repayment previous liability); Total loan debt as on Ist January, 1928, £545,900. Out of No. 8 loan a sum of £69,600 has not yet been expended, but is held on deposit pending prosecution of works connected with the Inner Harbour. The liability in respect to these works is £37,884, or, if certain works should be completed in concrete instead of stone, £52,757. Against the total estimated indebtedness of £545,900 an amount of £6,347 will have accrued in sinking fund by the 30th September, 1927, which leaves the net debt after the above-mentioned renewals have been effected at about £539,000.

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