THE GOVERNMENT AND THE NORTH OTAGO LOIN ACT.

Evening Star, Issue 3144, 18 March 1873, Page 3

THE GOVERNMENT AND THE NORTH OTAGO LOIN ACT.

The Provincial Government and Mr Steward, M.H.R., do not agree in their reading of the North Otago Public Works Loan Act of last session, and a good deal of correspondence has been the result. In October last, Mr SteAvard wrote to the Superintendent that there was feeling of uncertainty in the district as to the Avay the GoA’crnment would read the Act, arising in a large measure from the fact “ that last year, instead of the L ',OOO paid over by the General Govern ment on account of the Oainaru harbor Avorks, finding its Avay to the Trust, hi addition to the LG,OOO voted for that year by the Provincial Council, said sum of L 5 000 Avas treated by the Executive as a part of the Lfi,ooo, in fact, went into the Provincial coffers instead of into that of the Trust, as Avas ah initio intended.” _ Mr _ Steward pointed out that the express intention of the Act, and undoubtedly the agreement between the Hon. Mr Campbell and himself, as representing the district, and his Honor and the members of the Executive, Avho Avere in Wellington when the pleasure Avas brought forward upon Avhich the Bill was framed, was, that the L 70.000 it allowed to be raised was to be available entirely for new expenditure; or, in aAVord, that the L 70,000 was to be in addition to any sum voted by the Provincial Council for tho present financial year. A minute by the Executive to that effect was asked, in order that any doubts in the public mind might be set at rest. Writing on November 8, the under-Sccretary said, Mr Steward appeared to be laboring under a misapprehension Avitii respect to the amount paid last year tOAvardsOamaruharbor Avorks : neither the General nor Provincial Government could lawfully have paid more than Avhat Avas actually paid, viz., LG,()OU, as voted by the Provincial Council: that Mr SteAvard Avas also mistaken in stating that there Avas any agreement such as he referred to ; on the contrary, itAvas distinctly understood, that one object of the loan was to relieve the revenue, and to enable the Province to mike sure of expending the last appropriation of the Provincial Council within the district in question, and, accordingly, the most active steps were being taken to improve the main road, from the Horse Range northward—the expenditure to be borne out of the loan. The intentions of the Government are thus stated:—“As regards the harbor works at Oainaru, 'he Government proposes, irrespective of the loan, to fulfil its previous promise, viz., toexpendoutof revenue a sum not exceeding L2(),U00 ; of this amount upwards of L12,(Jl)0 has already been expended. Directions have been given with a view' of calling for tenders for the construction of a stone bridge across the Otcpopo River. The tramway to A wamoko will have the early attention of the Government. With regard to that portion of the loan to be expended at Kakanui and Moeraki, it wdll be necessary to obtain the most reliable professional opinion before undertaking any operations at these places.” On December 31, Mr Steward addressed a long letter to the Superintendent, traversing the Executive’s idea of the object of the loan. He states that his original idea was to make the loan LIOO,OUO, and that in the schedule, L 30.000 was set down for roads, and Llo,ooofor the Moeraki jetty ; that the last item Avas struck out, because the General Government w ere erecting a jetty at that port, and it Avas therefore unnecessary for the" Province to interfere ; and that at a conference between his Honor, his Executive, ami the members for the Oamaru district, it was urged by Mr Reid that, as the district was getting a tramw r ay to Awamoko, and probably a railway up the Waiareka valley, and as the main line from Waitaka to Moeraki would be shortly commenced, the sum of L30,U00 would be more than would be required fqr common roads, more especially as some L7,St)O had been voted for road works last session of the Provincial Council, “On these ground*,” continues Mr Steward, “ Mr Campbell and myself gave Avay, and the amount of the loan proposed to be authorised was reduced to L 70.000, the item for roads being reduced to LIO,OOO. For myself, at any rate, I distinctly say that I understood this LIO,OOO to be in addition, and supplementary to any sum voted by the Provincial Council for the current year. And, moreover, your Honor will perhaps permit me to remind you that on my return from Wellington I had an intervieAV with your Honor in Dunedin, when you stated that ‘ no contracts entered into before the passing of the Act; vo v dd bn charged against tho man.' To tfnppose'that the L 7,800 voted last year by the Provincial Council, Avas intended to be deducted from the Loan, would be to suppose a manifest absurdity, it would be in effect to say that myself and Mr Campbell had agreed ti-j down (in a Public Works Ppfyf) quly the ridiculously small sum of L 2,200 for the first necessity of the The thing is on the face of it absurd, and I think your Honor will bear me out that it Avas never so intended, ” The correspondence closed on March 4, with the folloAving letter by Mr Willis : “T am desired to state that the GoA'ernmcnt holds that the sums voted by the Provincial Council last session, in respect of works in tho Northern District, are available, irrespective of the Loan authorised by the General Assembly, and that whatever unexpended balance may remain at the cud Oj the financial year, Avill pc carried to'Sriapense Account, as far 1 as Has can Be done Avithiri the provisions of the Audit Act.”