ROAD PAVING

Ashburton Guardian, Volume 57, Issue 253, 6 August 1937, Page 6

ROAD PAVING

PROGRAMME FOR THE COUNTY. VIEWS OF FINANCE MINISTER. TEN YEAR PERIOD ADVOCATED. THE COUNCIL IN AGREEMENT. In reply to representations made by the Asnourtou Uounty Uouucil in regard to the proposed nve-year road paving programme in Mid-Canterbury, tlie non. X'. eraser, lor tlie Minister oi nuance, lias sent a letter advocating tne spreading oi tne programme over a period of rU years, and setting out advantages oi adopting tlus course, oi these being a complete saving of interest. xlie Minister’s letter, received at the meeting of the Council to-day, stateu. “As you are aware, certain provisions already exist lor tlie raising oi loans by local authorities lor Highway purposes without a pou. Under tins legislation advances are made to certain local authorities but only where they nave been unable to arrange tlie loans themseives, or nave been unable to obtain tlie ratepayers' consent and it lias been tound necessary to advance the .money in order that the work couiu be proceeded with. More especially has this been the ease where tlie section or the highway concerned has been merely a portion of a comprehensive road improvement scheme. “lhe Government appreciates the difficulties experienced oy local authorities in obtaining the consent of the ratepayers for extensive highway schemes, more especially in areas other than those where the built of the ratepayers are situated, but if at all possible it desires to avoid the promotion of legislation of a general nature consenting to the raising of loans without polls, it would appear, however, that the solution of the problem is contingent on the amount of subsidy available from time to time from the Main Highways Board and the finance to be found by local authorities concerned will be limited by that factor unless they propose to proceed without assistance from that source. “In your Council’s case you contemplate a five-year programme, but the period within which the work may be completed will depend to a large extent on the rate at which subsidies from the Main Highways Board are made available and m this respect information has been received from.my colleague, the Minister of Public "Works, that he anticipates it will require a longer period possibly extending over about 10 years to provide the subsidies required to complete the programme submitted by your Council. “In any case, if the Main Highways Board did advance your Council’s share it would be necessary to provide repayment within the maximum period of 10 years so that no advantage would bo gained by your obtaining the money at an - earlier date as it would require to be repaid within the term within which the subsidies could in the normal course be made available. “It would appear, therefore, that if your Council could repay such a loan over 10 years and in addition meet tlie interest on it, it would be to your advantage to spread the work over the full 10 years instead of over 5 years as at present contemplated and meet onetenth of the cost direct from current revenue each year. This course would have the added advantage that no interest would be payable and the work would be carried out over the period during which the subsidies can be made available.” The County Clerk (Mr G. Kelly) stated that at a rate of 10 miles a year, the cost would be £IB,OOO a year, of which the Council’s share would be £4500, representing a rate of only three-thirty seconds of a penny. Mr H. U. B. Witheli said the Coun-cil-should fall in with the scheme of the Minister, though it had been realised to some extent that the five-year plan was a rather difficult hurdle. The chairman (Mr F. Frampton) said that it would be better to do a little at a time over a longer period than to do a lot in a short time on borrowed money. Mr J. Carr said the Council was not afraid of its original programme, but it was difficult to get people in one area to sanction a loan for roading plans in another area, which they knew little about. It was a case of lack of local knowledge. There were few counties that were in such a good position as Ashburton was in, and to go on with the original plan might cause difficulties for other counties. Mr D. J. Morrow said the rates were going up all the time and now it was coolly proposed to put them up a bit more, following the Government lead of putting it on in the good years. The chairman said that there was about £26,000 going to the highways funds from this district, and if the Council did not get some of it back the money would be spent somewhere else, and it would be gone. The County should take advantage of what was offering. In reply to Mr Carr, the chairman said it seemed definite that in future roading would have to bo done out of revenue. The following resolution was carried :—■ “That the Council regrets the inability of tlie Main Highways Board to continue its policy of making advances for paving works, as the decision will retard the progress ot paving of roads which are required to provide for pre-sent-day traffic, if the work can only be done out of revenue, and that the Clerk and the Engineer prepare a report on the present position.”