THE Hauraki Plains Gazette With which is incorporated THE OHINEMURI GAZETTE. Motto: Public Service. MONDAY, WEDNESDAY, & FRIDAY. WEDNESDAY, JANUARY 11, 1922. PLAINS LOAN PROPOSAL.

Hauraki Plains Gazette, Volume XXXIII, Issue 4364, 11 January 1922, Page 2

THE Hauraki Plains Gazette With which is incorporated THE OHINEMURI GAZETTE. Motto: Public Service. MONDAY, WEDNESDAY, & FRIDAY. WEDNESDAY, JANUARY 11, 1922. PLAINS LOAN PROPOSAL.

January the 18th will be a day of much interest to the residents of the Hauraki Plains, for on that’ date the Hauraki Plains County Councils’ loan proposals will be re-submitted to the ratepayers. The proposal is to sanction the borrowing of £30,600 for the purchase of county chambers, quarries, machinery and equipment. Unfortunately, since the putting into operation of the necessary legal formalities and the making of all arrangements for a poll, a serious slump in the price of dairy produce on the Home markets has occurred. Naturally, under such conditions the ratepayers are not disposed to shoulder additional financial burdens, even for such important facilities as good roads undoubtedly are. Recognising the stern logic of events, the Council has wisely come to the unanimous conclusion that a definite guarantee against all but vitally necessary expenditure must be given to the ratepayers; it was decided, during the course of the monthly meeting of the Council at Ngatea on Monday, that, should the poll be carried, noc more than £lO,OOO would be expended during the first year, and until such time as the Dominion’s financial position righted itself. It is also definitely stated in the course of a circular being sent to the ratepayers that neither county' chambers nor land will be purchased out of the £lO,OOO mentioned above. The situation is regrettable, but nothing can be gained by blinking the cold facts. The Council is committed to certain expenditure for machinery purchased in anticipation of a loan being carried ; certain work must be carried on all the time; argent reading must be proceeded with. The general rates are not sufficient to meet this unavoidable expenditure, and if the loan is not carried there is little doubt that the general rates will have to be raised in order to meet commitments. Seeing that the Council absolutely must have the money, it is far better for the ratepayers to secure it by loan than by general rates. By the loan method the cost (interest and sinking fund) will be spread over a number of years; if the proposal is defeated, then ratepayers will be obliged to find the

money in the immediate future out of general rates, which will necessarily be increased; furthermore, the general maintenance would be practically nil for a few years. There is no possibility of getting out of paying for goods received and receivable ; the only question the ratepayers need now be concerned about is as to which is the better method of payment: to overburden- themselves for two or three years, or to spread the pay-ment-over a lengthy period. Commonsense points to the loan proposal as the better, way out, especially as every member of the present Council has practically given his word of honour not to go beyond the irreducible minimum of expenditure necessary 'for carrying on the affairs of the County until such time as the general financial position of the Dominion is improved—which means an equitable adjustment between the selling prices of our primary products on the world e markets, and the purchasing prices of the commodities the farmer has to buy, including labour. A calm analysis of the position proves beyond, doubt that the ratepayers, whatever grounds of complaint they may justly possess, will best serve their own interests by carrying the loan pror posal to be submitted to them on Wednesday, January 18.