COUNTY FINANCE

Gisborne Times, Volume XXV, Issue 2063, 14 December 1907, Page 1

COUNTY FINANCE

COUNCILLOR LYSNAR’S BIG LOAN PROPOSAL. SCHEDULE PUBLISHED AT LAST. SINK OR SWIM NEXT THURSDAY. A special mooting of tho Cook County Council was held yesterday morning for tho purpose of considering the report of tho conmiitteo sot up to consider the proposal to borrow £200,000. Present:—The Hon. Captain Tucker (in tho chair), and Councillors White, Matthews, Kenwav, AY. D. Lysnar, and F. J. Lysnar. COMMITTEE FAIL TO AGREE. The Chairman said that two days previously tho committee had mot for the purposo of coming to an agreement as to tho details of tho loan, but they could not agree, and therefore they had nothing to report. COUNCILLOR MACDONALD’S . VIEWS. The Chairman read tho following letter from Councillor MacDonald, who was unable to be present through illness:—l received notice to-day of the! special meeting of the Council, to be bold on Friday, the 13th inst., and> regret that. owing to getting a nasty spill from my horse, so far I seo no chance of being ablo to get' down by Friday -to tho meeting. It is unfortunate, as I . have been requested by the settlers in Mangatu, Motu, and Itakauroa, to oppose tho loan. However, I have every confidence that- yourself and other Councillors will! not submit any scheme that will not be in tho interests of the' County. Ro Committee’s report and schedule for £200,000 loan: So far as the .schedule of the amended report (which I understand is to be submitted on Friday) is concerned, of course I am quite in tho dark; but; taking the schedule and report that has already been submitted to the Council, I am. entirely opposed to it. (1) Because I consider the present is not an opportune time to attempt to raise such a largo loan. Tho. county debt at the present time for: speeial loans raised, and loans that are now applied for, amount in round'figures to tfoso on £100,000; the proposed loan, £200,000; and contemplated harbor loan, £400,000. This to my mind at the present, juncture, when prices for pastoral products are anything but bright, is a very large •'amount to ask the ratepayers of the ' County to pledge their property for.; (2). From what on© can gather, in the present state of tho money market, the loan with interest and sinking fund cannot be raised at less than 5 per cent. This, with scarcity of labor, high rato of wages, lac'k of material, would not give tho settlers anything like commensurate benefit for such a largo expenditure, which would entail a special! rate of at least 3d in the £, and we must hoar in mind that already in many ridings there is heavy special rates. It is also well to keep in mind the fact that once the loan is raised the rate will be a recurring one for 41 years. I am as keen as any Councillor to see (the roads improved, but not until something more definite is known as to the class of material available, vmd whether stone or metal of a quality good enough to warrant the heavy expenditure is available. To my ( mind the first stop the Council should take is to send a circular to all the County Councils in the Dominion) or at least in tho North Island, asking them to urge the Government to pass a now Counties Bill early next session, which will enable County Councils or local bodies to raise Joans each year up to the amount of their requirements instead of being,'limited to £6OOO as at present. However,; no doubt each Councillor will! have his own opinion of what is best for liis own riding. In regard to the AVaikohu riding, Mangatu people are against the loan. They say that from Mangatu bridge up they have made all the roads themsdlves from special rates, anil all that they now ask is that the roads shall be maintained. So far as AVaikohu riding is concerned, it- is only fair that the; Council should know that the ratepayers arc contemplating seceding 1 from Cook County, and forming a hew county of the AA’ai'kohu riding; or such boundaries as shall be agreed upon.. It appears evident tile, settlors would gain more by seceding than going in for a. big loan. They would have the Government subsidy of £2500 a year in addition to their present rates. A portion of the Opotiki settlers in the; Uratawa- survey district would join tho new County, as there is a great deal of new country coming ill. . Settlers would have a better'representation if a new County was formed . You will notico in tho statistics of New Zealand of local governing bodies that Cook County at present is double the size of over 70 of the counties in New Zealand, and there are only 15 largor. I will bo glad if you will givo the matter consideration, when considering the loan proposal. I regret not being ablo to be at the mooting oil Friday, as I could oxpllain the position more fully—Yours faithfully, .AV. D. S. MacDonald”. SPEECH BY CR. LYSNAR. Cr. Lysnar said that as representing tho same district as Mr. MacDonald ,ho was surprised at the contents of the letter. It was too early to criticise tho loan proppsals, and further the loan was altogether in favor of the riding. In conversation with a Motu resident he learnt that the settlers had as yet formed no opinion. At a meeting of ratopayeys in the district for t-lio purposo of considering the loan nothing was don© as the schedule was not avaii!ablo. He had thought that the Motu people would have stood by and loyally supported tli© loan. The Motu people should b© allowed to carry on under the present exorbitant rates of cartage if they so wished. In the Mangatu district lie had heard many expressions of opinion in favor of the loan, and the settlers had gone so far as to go over the roads for the purpose of finding what deviations would be don© when tho money was available. Cr. MgcDouaGd was wrong in saying that the Council jyas ill ejebt to the extent of £loo,o6o—from figures supplied by tlio Clerk he found that the liability was only about £66,000. Tho matter of tho Harbor loan was a red herring. Cr. MacDonald had no right to bring tlie matter up; and he felt sure no ratepayer would vote against tho County loan because tho Harbor Board thought It prudent to male© a large loan, The suggestion about metal was childish. It was not proved that there was no good metal in tho County if there was no metal in one part; and even if they had not the best metal in

the Dominion, woro they to continue to carry oil with their present disgraceful state? As to the County bill tlioy all knew on tho authority of tho Chairman, that the machinery asked for by Cr. MacDonald had no hojio of passing Parliament. If ho woro speaking to the Mangatu settlors ho could soon persuade them that it was to their interest not to secede. Those who opposed tho loan were afraid of their own shadows. The County had a valuation of £5,000,000 at its hack, and they should not bo afraid of a small loan of £200,000, considering that the County was prosperous and increasing in value. In conclusion lio asked pardon for having spoken at perhaps too great llongth; hut all ho wished to do was to ensure that the Council did not baulk tlio matter coming bcforo tlio ratepayers. Tlio Chairman said that tho matter could not go to the ratepayers before it passed tho Council, and it seemed hopeless to expect that, as no two members of tho Council thought, alike regarding details. His own view was that it would be tlio best tiling to borrow this money. Ho oven thought that a largor sum might bo borrowed, but lie wished it to ho raised under tlio best conditions. However, when they came to fixing details of expenditure none of them could agree. A schedule prepared by an officer of the Council, which seemed likely to meet with favor, liad been submitted and withdrawn, and another schedule which coiild not bo expected' to bo accepted, was substituted. One disadvantage lie saw was if the loan were made and all tho roads put in good order, it would take a large sum annually to maintain them; and it should not be forgotten that metal would he very hard to get. Cr. Lysnar asked that the report of tho committee ho read. PROPOSED ADJOURNMENT.

Cr. Konway said he opposed going on with the discusison when thero were only a few Councillors present. Ho objected to the discussion on Cr. MacDonald’s letter. It was in had form and Cr. MacDonald could easily have refuted all tlio arguments if lio had'been present. Personally, ho was entirely against the loan. Tho Council’s recommendation to tho ratepayers would carry some weight, and tho Council should consider tho matter well before making a recominundation. He moved that tho matter bo (adjourned until a full meeting of the Council. Cr. F. Lysnar asked if it was tlie intention to lock the matter up for over. At next meeting probably one Councillor would he absent, and tho matter would so bo hung indefinitely of the spirit of Cr. Kenwav’s motion was observed. Cr. AVhite said that they might not decide anything that day, but they could discuss the matter fully. Cr. AV. Lysnar said that tlio absent members had been notified of the business to he done, and if they absented themselves it could he taken for granted they agreed with any action the Council took. Cr. Kenway said lio had no intention to block , the scheme, hut lie thought they should have before them tho views of all members boforo coming to a decision. Cr. AV. Lysnar said that if they waited for a full and a unanimous meeting the scheme would bo shelved, ed. Cr. Matthews seconded Cr. Ivenway's motion. On the Chairman’s suggestion Cr. Kenway altered his motion to provide that the matter he adjourned until tho Janaury meeting. Cr. AA 7 . Lysnar entered a protest against the constant adjournment of the matter. It hall now been adjourned again and again for about four months. ,

Cr. Matthews said he would prefer to seo tho matter considered at next meeting of' the Council, a week henco. Cr. -AV. Lysnar said ho>wqy}iLjnst; object to that, hut lie v;piiixk rdemand that tlie loan business he put first on the order paper, alid imt bo put after tlie rest of the ordinary business, and finally adjourned for lack of time. It would bo possible to adjourn tho matter until the day before tlio next meeting, and if they were sincere in their objections, those who asked for a full meeting would be agreeable to allow the matted to proceed then. At any rate the discussion could proceed, without any decision boing com© to. • Tho Chairman objected to this question being discussed on the day set apart for ordinary business. Cr. Matthews asked that the prime mover in tho matter should submit a schedule of what worics ho wanted done. If this schedule were submitted to all members they could come to their meeting with their mi-lid’s properly made up. It was finally decided that final decision on tlie matter ho held over till Thursday evening next. AYHATAUPOKO RIDING. Cr. AV. Lysnar gave notico to move the following motion on Thursday:— “That tho necessary steps be taken to place (before the ratepayers a proposal to borrow £200,000, in accordance with tlio recommendations of the committee, with,, this, exception, tliat,' for the purpose of this loan, the boundaries of the AVliataujioko Riding he extended -so as to include all the properties which are served by. and use exclusively, the back AVhataupoko and ICaiti roads, and which are included ill either the AA alma t a or Tolaga Ridings, and for this purpose, tho Clerk to deduct the properties - from the AVaimata and Tolaga Ridings so excepted, and add the same to the AATiataupoko Riding. That in any case where tlio loan money lias, not been apportioned by tho schedule attached to the committee's report to all roads in each riding, the Clerk shall further apportion them in the same manner as the others have been apportioned.” The only safe system of apportionment was that embodied in clause 4 of the report, which read: —“In a proposal of this kind it- is essential for the Council to seo the loan is fairly apportioned over the whole County, and that each road and locality gets its fail- quota of tho Joan money in proportion to its contributions, and it is upon tliis basis the Committee suggest the Council should work and so define and apportion tho loan nionev before the ratepayers are asked to vote, and when they do vote the voting papers should show specifically the proportion of the loan each road or locality is entitled to. so that it /would be'hereinafter impossible for the’ Council to deviate of alter the quota available for each particular road or locality.” If any attempt were 'made to alter the purport of clause 4 the whole scheme would he doomed. The one exception was AATiataupoko, which stood iu a very peculiar position. It was a long riding, with no depth, aiul it had to

earrv a. great deal of traffic for tho ■further hack ridings. THE (SCHEDULE. Tho Chairman said lie could not accept ail apportionment made by the Clerk. The Clerk had never been asked to- mako one. It was the duty of tlio Council. Tho Committee had never agreed to tho schedule prepared by the Clerk. Cr. Lysnar said he was not trying to say tliat the Committee agreed to tlio schedule. The motion before the Council at present was liis own personal action —it had no hacking from the Committee. The following is the schedule as apportioned by the Clerk on the basis of rateable Values (the figures in the first column representing the rateable valuo of the different divisions, and those in the second column the share of tlio loan they are entitled t ° ),— AVAIKOHU RIDING. £ £ AVaiapn Inland road 53,700 2,685 Ormond to AA 7 aihora Inland, including Ngakarea side road 61,800 3,080 Karaka. Town 47,000 2,350 -Kaitaratahi to ICaraka 33,000 1,650 Karaka. 187,000- 9,000 Arowhana 155,000 7,750 Mangatu from Mangatu ißridgo 156,000 7,800 AVharekopao Road... 112,000 5,600 McCutchan to Tai! bora 54,000 2,7.00 to Motu - *132£00 6,600 *72.200 3/(510 Lavenliam Road 86/500 4,325 Neill/Road ...: 92,000 4,000 Totals 1,475,500 61,750 AVAIMATA RIDING. £ "£ AVaimata Flat 107,100 5,255 Coast Section 119,550 5,978 Cray’s to Branson’s 150,000 7,500 Pouawa properties ... 241,550 7,037 Totals 618,200 2G,470 PATUTAHI RIDING. . £ tC AViiipaoa. to -.Pa rika 11apa. *120,600 6,110 *51,120 2/■ Smith’s -Road 98,030 4,800 Patutahi Town 27,320 1,300 Totals 337,000 14,710 GISBORNE-AAAHATAUPOKO. £ £ AVhataupoko Portion- lll;692 1,430 Ivaiti Portion 107,000 4,400 Totals 218,600 8,830 ARAI RIDING. £ £ Ivorero to Arai River Aral River to Maugapoiki Totals 573,100 23.530 UNDJYIDED SHARES. Gisborne 469,700 20,590 Hangaroa 320,739 13,210 Tolaga 727,500 30,880 Totals 1,517,939 64,710 SUMMARY. £ £ AA 7 aikohu 1,475,500 61,750 AVaimata ...: 618,200 26,470 Patutahi 337,000 14,710 Gisborne-AATiataupoko 215,600 8.830 Arai 573,100 23,530 Gisborne 469,700 20,590 Hangaroa 320,739 13,240 Tolaga 727,500 30,880 Totals 4,740,339 200,000 *,Bracketed.