PLAINS COUNTY.

Hauraki Plains Gazette, Volume XXXV, Issue 4755, 24 September 1924, Page 3

PLAINS COUNTY.

THE LOAN WORKS. A SERIOUS POSITION. A special meeting of the Hauraki Plains County Council was held yesterday. Mr J. C. Miller presiding over a full council. THE LOAN PROPOSALS. The meeting had been called by resolution to discuss the loan proposals and to hear the report of the county clerk on his efforts to raise loan moneys while in Wellington. Mr Walton said that there was a difficulty in getting money because the Minister for Finance would only grant authority to borrow money at 53/1 per cent., and only hypothecate loans at 6 per cent. At this rate no money was forthcoming. The bank had informed him that it was possible to raise loans at 6 per cent. He had seen the Superintendent of the State Advances Department and had been informed that he had only been authorised to consent to loans at the above rates. The idea was to restrict local body borrowing, so ae to bring down the rate of interest. An application had been made for the TuruaOrcngo roads loan, and consent had already been given to raise that loan and the Turua district loan at 6 percent.

For the Horahia roads loan and the No. 2 machinery loan applications had been made, and for each of the other loans applications for the hypothecation of portions had been made. It was not economical to raise one loan only, as, foF* instance, it was of no use purchasing machinery unless money for the reading schemes wars available.

For the Turua town district £4OOO, and tor the Horahia riding £6OOO, would be sufficient for the# work that could be done during the present summer. Application had been made to hypothecate £3OJJO of the TuiuaOrongo road loan, but it might be necessary to raise more of that loan. Application had been made for the hypothecation of £6OOO of the No. 2 machinery loan, but this was already earmarked to pay for the punts and rails purchased. If the road loans were to be gone on with, more of the machinery loan would require to be mised* In regard to the Netherton roads loan, £3400 had been received, but some of this had previously been spent. A committee had been pet up, but had not yet reported on the apportionment of the balance of about £2500. So far £660*0 of the Turua-Netherton roads loan had been spent, leaving about £5BOO. He did not know when the balance could be raised. The bank had suggested approaching the A-.M.P. Society, which had been done, it being ascertained that the society was booked up for the next twelve months. The bank had asked if the Council had considered the advisability of paying 6 per cent. The local bodies of the Auckland province were spending more than was justified, and loans over small rating areas were not sought after by investors. It might be possible to get the Minister’s consent to the hypothecation at 6U per cent, within a few weeks’ time, and investors could then be found.

in reply to Cr. Mayn the clerk said the effect was that as the Nether,ton roads loan and the Turua-Netherton roads loan were the only ones-with funds in hand, work on them, and on maintenance, was all that could be paid for. The construction of hoppers at Turua would have to be deferred. Cr. Mayn moved that further application be made for some proportion of the loan money. In seconding, Cr. Harris said that unless this was done the works would have to be stopped and the staff curtailed. The motion was carried. * THE ESTIMATES. The county engineer, Mr F. Basham, said that on going through the estimates for the various road loans he had come to the conclusion that they were all about 25 per cent, undeiestinu'.ted. This was borne out by the works that had been commenced but not completed owing to the lack of funds. The estimates, he thought, might have provided for Government subsidies, but there was not sufficient money provided to do the work up to the standard required to earn these subsidies. The estimate under, which ■the Turua southern area loan had been raised ■ was £17,900, including £B6O for contingencies, and the present estimate was £24,013 without provision for contingencies. For the Horahia scheme the previous estimate was £26,680, and the present estimate £35,400. When the previous estimates were prepared the Highways schme had not been considered, but even bn roads that would not be affected by this the deficiency was very great. As an example, the Horahia Road estimate was originally £1660, and was now £2763. The discrepancies could be accounted for by the omission of provision for the costs of heating bitumen, spreading bitumen, sand for the seal coat, spreading of the sand, and the cost of supervision. The estimate for the cost of the metal was right, but an insufficient amount had been allowed for labour. Since the first estimate had been drawn up the provision of metal shoulders to the bitumen roads had been recognised as essential. These cost about £5OO a mile. Councillors pointed out that subsidies had riot been considered, but on the other hand the price of metal was proving to be much less than estimated. The (specifications for the Turua district roads loan had been returned by the Public Works Department for amendment. They had been amended and returned, but up .to the present had not been approved. The major alteration required was the provision of metai shoulders alongside the bitumen. The provision of these would cost more than the subsidy. Cr. Madgwick'said that the Public Works Department had asked for

about 13 inches of metal on the main road. If thfe was to be insisted upon the subsidy" should be abandoned. The ratepayers would not sanction a further loan, and it would not be right to leave part of the job unfinished. Restrictions should be made all along. The engineer pointed out that the ratepayers had sanctioned what they had been led to believe would be a good road. He would not have any work done below the minimum recognised standard, except by direction of the council, as otherwise, if the job proved a failure, the blame would be attributed .to him. CT. Madgwick moved that the engineer be instructed to cut down the quantity of metal to be laid on the Turua-Netherton roads loan work so as to make the available loan money complete the undertaking. Seconded by Cr. Nicholson and carried.