THE £l0,000 LOAN.

Dunstan Times, Issue 981, 4 February 1881, Page 3

THE £lo,ooo LOAN.

DEBATE IN THE COUNTY COUNCIL. IMPORTANT TO RATEPAYERS. In accordance with our promise in Inst week’s issue, we now present to our readers a report of the discussion which took place •on the County Chairman’s proposal to raise a Loan for necessary public works ; The Chairman said that, in dealing with the motion standing in his n me, he felt it to he his duty to the Council, and also to the ratepayers, in whose ham's the final decision lesta, to explain somewhat in detail the reasons which had induced him to place it on the Order paper. Councillors might remember, hut the ratepayers mightnotremember, ormieht net kn-uv the conditions upon which the Counties consented to accept the responsibility of making nnl maintaining the public roads, and the cost of punts -and bridges burdens previously borne by the Provincial Government. A solemn Act of Parliament made provision for these, works in somewhat remarkable words—words which should he very binding on honorable men. “ The Financial Arrangements Act, 1876 ~ provi el that there should bo “ issued and paid out of the Consolidated Fund during each financial year for five years after the coming into operation of the Act, but no longer “ a sum equal to LI on every ’L of general rates collected. The words but no longer, by their finality strengthen and render the condition more binding on the Slate, as anv lawyer would, he thought, tell them. Where there are road boards within counties a double taxing power exists : —Firstly, by County rates, and second y by road hoard rates, consequently the subsidy paid to counties where there are road boards was at the rate of L2, and whore there are no road boards it was only LI. This was f It to be unequal, and the following year the act was amended, granting to counties within which no roa 1 boa- ds exist, a subsidy of L2 on each LI of general rates c 1lee'ed. Another source of re enne guarantee 1 hy the Financial Arrangements Act, 1876. was the balance of the Provincial District Land Fund remaining after payment of subsidies an I other specified charges This also, was altered by the Financial Arrangements Act, 1877, which directed that there should be paid to each county, out of the Land revenue accruing within such county, a sum equal to 20 per cent, thereof. The payment of these tionieg was solemnly assure I to the conn Je< from the Ist January, 1877, to Ist manuary, 1882, that is to say for five years j and the c unity councils, relying on the authority of a law registered on the Statute B mk of the country, were induced to uudei taka works of great magnitude, such as had been previously undertaken by the Provincial and General Governments ; and to rate tbemse’ves to the extreme Unit permitted, with a view of availin' themselves of the conlitions stated. But during the last session of Parliament an act, te’-mad the Financial Arrangements Amendment Act, which mi hfc mn-o fit'y he calk'd an Act of Ropu Ration was passe 1, bv which the s de on obligations of the previous statutes were violated, and 'mth snbri ly and Lan 1 'Fund were shamelessly wrested from the counties. To his mind nothin j could excuse such a flagrant act, for ho held the obligations of the -state to be binding, no mat'er what the condition of the public finances might bo ; and he feared that a Par'iament which could deliberately sanction the repudiation of obligations to these local bodies would be capable of also sanctioning the repu Ration of the public debt. Rv this action the counties and real boards f mnd themselves suddenly deprived of half ih-ir income, whilst two years of the stipu'ated time yet remained unexpired In the meantime, tnigring to the fai'h of Pirliamont, they lia 1 incurred contingent liabilities of very considerable amount ; an 1 in the case of Vincent County to an amount which Would r quire the whole of the remaining revenue f >r the next 18 months, [n order to clearly explain the pres-nt state of affairs to the Council and the ratepayers, he hal prepare! derailed a id tabulate 1 statements, which ha would now lay on the table The total amounts receive! as subsidies on rates sinco the c irnmcnccmont -of the county system was 1-11.153, 13s 101, and as Lon! revenue U 1,008 12< 11 1, or in all 1,41.162 The amount expended on public works during the same nerioi, viz, from Ist January. 1877, to 31st December, 1880, was L 70.360 Last Financial year the tital amount revive 1 from these two was 1,8330. an 1 in the previous year 1,6181. He would not. therefore, bo very far wrong in estimating the annual loss by the withdrawal of subsidy and land revenue at L7OOO, or for the two years during which the payment of these should have be n continued to the tenunty at 1,14.000, less L2OOO received in part payment of subsidy and land revenue during the current financial year a sum which exactly represents the amount which will be reqni ed in payment of existing liabilities within the next 18 months; These,liabililies consist of balances, which will become poiyahle as fdlows Alexandra and Clyde Bridges, L|0.902 5 other small contracts, L2IO ; maintenances of ferries, 1,840; main- I tenances of roads (estimated), 1,2901). Our present revenue, independe nt Vote subsidy vonAA 1 " 1 v, ' v,n ' le . may fairly ho stated at I-MOO per annum ; and in connection wi hj this he Was pleased to inform the Council that uer revenues hal shewn a steady in- ■ crease from tly* com ncncemcijt o' about •>sn) per annum. It would hcnpoaierit ■from what he hj . I stated, that, the Council bad just enough to pay its liabilities but 1 rontd have pn'Vpg whatever, for new •-Vtf.kJj nor hjtea the’ efficient huiuten- ,

ance of tho roads during tho next .18 months. On looking at the Order Paper before him, he found that councillors were asking for new works, which would cost from LIOHO to L 1700; but none of these could he proceeded with unless tnoney was I raised for tho purpose by way of loan. For tbit condition of aff.irs the Council wen in no way blameable. They "had a right to calculate on the receipt of a certain amount of revenue until the time fixed by the Statute had expired; and upon the'basis of this, their present engagements had been entered into. Oriehalf of that revenue had been wrested from them at one fell swoon, and they might consider themselves fortunate in not being in debt. The present time was most favorable for raising a loan. He ha 1 never known a time when money in New Zealand was so p'entiful and so cheap. [The sneaker then pointed out the mole of raising a loan and provi ling for its repayment'] It he paid by 'forming a Sinking Fund or by tho periodical withdrawal of debentures, hut these were matters of detail. The question was whether it was advisable to raise a loan, and he desired toimnresa upon the Council that the final decision did not rest with them but with the ratepayers. The Council had no power to raise a loan of their own mere motion, but only to refer the matter to the ratepayers to say " Yes ” o- “Nn” In Part 9of the Counties Act the mo’diod was ver, clearly laid down, if his proposal was earned ihe ratepayers wool I be called upon, through the ballot hex. tn vo‘e for nr against it and their vet s wonll decile it. A bare majority in ite f ivnr would not be snffieient. There must I en maj >rity of at least one fifth. For instance if 500 ratepayers voted ag tins' 'tie loan, tie rs must, be a t lea t 600 to v-1‘ for it, before the Council could procee' t ra'sn it. That being the case, he did not think the Cnhncil should refuse to allow the quest inn tn go before the ratepayers. Tf-thev'(the’Council) adoptel the resolu ♦ion they would not thereby pledge the County to a loan, but merely give the ratenay rs an opportunity of exoressing their opinions. He was stro-gly of opinion that if the ratepayers understood that public works must be suspenled f>r 18 months or two ye.a r s without the loan a large maj iritv w -nld vote for it. He placed the motion before the Council with some confidence, and with the hope that they would heartily sunnnrt it. If it was agreed to, those coming hereafter won! 1 not have to complain of the want of roads and bridges in Vincent County. Or Co’clnngh stated that at the outset that he was dead against the motion. He took notice in bringing forward this motion, the Chairman had not. mentioned the fact that they received 1.10,000 at the time of the flood, which was in excess of other Counties. ADhnu"h the Government had withdrawn certain moneys—which was done under extreme pleasures—they gave them a quiet little "bonus o F LTO.OOO, and the Chairman had not brought that forward in the Financial Statement,.' The c ist of obtaining nn expression of the ratepayers, he thought would be equivalent to a general election. They would simply ask the ■ ratepayers what they the Council were ap- ' pointe Ito do. It was absurd for the Conn- I cil not, to look into the matter before asking the opinion of the rateoayers. LIO.OOO would he just sufficient to carry on their present projected contracts, and would leave them high and dry stranded—which they deserved to be. His end of tho county, he believed, was satisfied the C-nncil had been most lavish with their money, and in his opinion they would not get a vote in fivor of borrowing this sum. He believed it was the best thing that could happen to the Council to know what adversity was. After some further remarks. Cr Colclongh state! that he was prepared to sacrifice his all to prevent the Council, as at present constituted, from borrowing LIO.OOO during the current year. Cr M'Ginnis said he had not thoroughly made no his mind on the subject. He was very glad that the ant laid down that the matter had to be relegated to the ratepayers. If that was not the case he would vote dead against it. At the time they were elected they had plenty of money, and no one anticipated that tho General Government would turn round so ruthlessly and den-ive them of their money. Tn reply to Cr Oolelongh, he would state that, although they received LlO 000 from the Government, it was entirely lost during •he flood, (The Chairman.— It took T,30,0n0 ) That snip should be counted j as nothing Wi'h regard to tho squandering of money on bridges, no man in the Onnneil had supports) the construction of the Clyde Bridge more than Cr Colclough. 'he sneaker had nn doubt that if tho Council contemnlatod the Government were going to rob them of their mon y they would not have gone on with these ’'ridges. In carrying opt these works, the County was only doing what had been done in ancient and modern times, viz,— the construction of necessary public works, which would benefit generations that would follow them This C umcil had carried out works with th-ir simple revenue which no Provincial Government had done. The Government were entirely to blame for the present stele of affiirs, and for his own part ho did not see there would bo a very great expense in putting tho question of borrowing Wore the ratepayers The e was a probability of instances occurring wh»re money was absolutely necessary, and if there was none available the Council would simply he jammed in a corner. Cr Jolly said the question was of more importance to the ridings he represented than the others. The southern parts of the ‘’minty had had the lion’s share of the revenue. Personally he was opposed to borrow ng. but ho took the highest stand on that opinion. He knew that the requirements in h's own riding should cause him to overlook his own opinions in the ma ter. He had opposed the Lander Bridge, and was surprised the Chairman had supported that work. There was a certain amount of credit to members who got their work rush'd through' but there stemed to him to he a scramble—ns was the case in Parliament—as to the best way of getting work for their constituencies The speaker conclude by intimating his intention of voting for tho proposal. Cr Pitches could not see his way clear to vote for tho motion. He thought they should try and do without borrowing this large sum of money, and induce some member of the House to bring the injustice they were suffering before Parliament He thought the matter should stand over until next meeting. Cr Scrooach said he must oppose (he morion The County started with a very handsome credit, and- had been spending money carelessly. Tf they were to he brought up to a standing check, the sooner the better. % ... rte ' Cr Naylor stated that ha was opposed to borrowing money. There was no harm, ho thought, in asking tho ratepayers if the Council should go into"tho market. Ho, diil not think any particular councillor I was to Idnme for. the present' dilcipnia J they all had a “finger in the ploV" tryingii to get tho 'most, for their own rid in 'te ;i l.r Co.c ou hj hid state! that more money ha] Iteen spout in this ri ling »>. Why, (hey con'd not get voo Is'up’countryHf they had not built bridges here, (Laughter J ,

After soma further remarks from councillors! Or M'Ginnis moved, ns an amendment, that the motion stand over until next meeting for a fall attendance of the Council, and that a statement of works the loan should he expended on he prepared The speaker held that, as this was a matter affecting every member of the Council, they should not decide either way until there was a full meeting. The question would thus he ventilated, and public opinion formed in the meantime. <> Jo'ly seconded the am m iment. TheChairmm pointed out toCr M'Ginnis that he was not in order in moving the amendment. Having once spoken to the motion, he avis not r.t liberty to move an amendment thereon. However, the Chairman said, ho would offer mo otq iction to the amendment being moved on his motion. The amendment was unanimously agreed to. and it was also decided to have a call of the Council to discuss the mo'ion. The Chairman accepts 1 the amendment with pleasure, remarking that there was no hurry fora coup'e of months. During the debate the Council Chamber was attended by a large number of town ratepsvers, who appeared to take a lively interest in the proceedings.