TO SERVE HUTT VALLEY.

Dominion, Volume 3, Issue 817, 14 May 1910, Page 6

TO SERVE HUTT VALLEY.

BIG TRAM SCHEME. , THE PREMIER ON A HUGE LOAN. SCANT PROMISE. With a view of ascertaining whether, m tho event of tho proposal in connection with the establishment of eldotric tramways for the Hutt Valley being sanctioned by the ratepayers, the loan of £85,000 required for tho project conld be obtained from the State Advances Department, a large deputation representing tho Hutt Valley Tramway Board waited upon tho Prime Minister (Sir Joseph Ward) yesterday. Mr. Wilford, M.P., in introducing the deputation, remarked that under recent legislation the board had been empowered to establish electric tramways. ■ Before a poll was taken it would like an assurance from tho State Advances Department that it would be able to get the necessary ■ money (£Bs,ooo).through it.. The security for the proposed loan (if sanctioned) was to be a rate of Jd. on rateable property worth £1,800,000, which would produce roughly-speaking £6000 per annumample to meet interest, sinking fund, and depreciation. In' addition the board would be prepared to mortgage the undertaking to the Department. The question as to whether or not the tramways should be constructed was still left to tho ratepayers. As a result of tho establishment of the tramways, Government property in the district would bo beneficially affected. How tho State Would Benefit by the i Tramways. Mr. MTilwan, Mayor of Petone, emphasised the fact that the whole of tho projected service would act as a feeder to the Government railways. The service'would bo of particular advantage to the occupiers of the workers' homes. Owing to the acquisition of lands by the Government within Petone the borough' had lost at least £1500 in rates. The Nai Nai property would be opened up as a result of the establishment of the service. Altogether the lines would total 11} miles,-: but it was not proposed to do the whole work within twelve months. The hoard felt sanguine that the poll of' ratepayers to be taken within the next six months' would be successful. It was known that tho money could be got from London, but if the money were obtained through the State Advances Department a saving, of £800 per annum would bo effected.' ,-'...

Mr. Baldwin said tfhat Hie laying of a line to the Hutt Park would be the' means of greatly increasing'the revenue of the railways. The Hutt Park was bound to become the great athletic grounds for the city .of Wellington. Mr. 'Findlay thought that the Prime Minister had in tho past made a mistake in describing tramways*as a luxury. They were just as much a necessity to the Hutt as water supply, for instance, might bo to some other, placo. ' , Sir Joseph: What I said was that they were not a necessity. ./■Mr. Findlay: But I think jbn wore , •

K Sir Joseph: Wo must agree to differ., - Mr. Findlay: Supposing a: youngster has-to go a long way to school in -Hie wet and catches cold and dies. That would be just as serious as if the child had died of typhoid foyer.' •',-.. Mr. Hawthorne touched on .tie benefit which wonld arise in connection with Government properties in the district as a result of the establishment, of the tramways. ' ' ...The only other speaker, Mr: Southgate,, mentioned that there .were 15,000. people in the district which, would bo served by the .lines.' .;,•. :■■-..■■ ■■'■■ I Prime Minister-In Reply. . • Sir Joseph (in reply) said he did hot wish to discuss the proposition from the point of viow as to whether it was a good or a bad one. He had no doubt that it was a good one although the necessary data was not before him. The argument that the tramways would help the railways was one which he could not accept as being legitimate. Such a claim might bo put forth;by all other towns which had tramways. • As regards the suggestion that tho tramways would enhance tho value of Government property in the district, he had no doubt that it yas correct. But what about tho localities where if railways were constructed there would be very,largo additions to the exchequer? : It all camo back to tho one point: That an argument of the kind could be made either in connection with the railway in the country or a tramway in a town.. He conld not give tho assurance' sought, nor could ho give such a one to any' other., local body that without proper consideration it could rely upon tho State Advances Department making an advance. Tho fact that the loan might be over two years did not • matter, for as soon as ■it was authorised it could bo got at onco. A twofold difficulty presented itself in connection with tho matter. First of .all the' board had not got before -if tho necessary data. It should bo told the probable receipts and- expenditure, •the results of tho operations and tho security. As regards the security, ho felt certain that it was a 'fine one. Still before the Department could consider such an application, all the information would have to be in its hands. Then again the State Advances Department was established for the purpose of assisting local public bodies : upon the same lines that they were assisted under the previous Act. It "would be remembered that under the. former law money 1 could not be advanced for the purposes of tramways. A . Necessity or a Luxury? The Department was .created to advance loans in connection with undertakings which could be described, as .''necessities," at a very low rate of interest, viz., 3} per cent. Applications in connection with tramways had been received from Invercargill, Hastings. Karori, Gisborne, Napier, and other places, amounting, in ■ all to £300,000 or £400,000. But in the meantime they had.had to bo refused. The Department was, he thought, adopting tho proper course in providing first for "necessities," .such as drainage, water supply, street improvements, roads, and bridges, and sanitation. He did not say that tramways were not a proper' thing to bo considered in the matter, but more urgent works must first reoeivo attention. It might bo that tho time would come—perhaps in twelve months—when such applications could bo dealt with. The Department had already advanced £800,000, and was doing really good work. If, however, it wcro at its outset to grant tho applications for tramways, it would bo flying ill tho face of tho 'intention of Parliament. Ho would be glad to be in a position to givo tho assurance sought, for ho would liko. to see tho district get its requirements at the lowest possiblo rates,, but it was not within his power. Tho simplo fact was that tho Department could not at present pat tramway loans in the sanio position as loans for more urgent works. If tho undertaking were sanctioned by the ratepayers, thoy should get together tho necessary information and submit their application for a loan. Ho might mention that Invercargill had already carried a poll, but tho application had' as yet boon refused, despite tho fact that tho security was heyond all question. Hutt could not, therefore, bo put in a difforcnt position from other, towns in regard to tho matter. If thoy asked on broad grounds if he thought that the security was satisfactory, he . rpould, of oouifie* muiwer "Ycc'i

Tho argument that the district was getting no rates off property which tho Govornment had acquired was illogical. Did they want tho Government not to do anything in their district?

Sir. Hawthorne: Why don't you make uso of tho properties? ' Sir Joseph: Wo hope to do bo ; it is just a matter of timo. Resuming, Sir Joseph said that tho people living in tho workers' homes would contribute towards tho tramways revenue. Did they expect tho Government to give an additional contribution ?

Mr. Hawthorne: Wo are only asking for a loan at 3£ per cent.

Sir Joseph added that the board could not consider the . application at present. It would be improper to mislead them on that point. Mr. Findlay asked if, under tie new law, advances could be made in respect of tramways. Sir Joseph: Oh, yos. Mr. Wilford, in thanking the Prime Minister, said it could bo taken for granted that the board would be persistent in its desire to secure a loan.