SHORT PERIOD LOANS.

Hauraki Plains Gazette, Volume XXXX, Issue 5500, 13 November 1929, Page 2

SHORT PERIOD LOANS.

REGULATIONS CRITICISED. LOCAL BODIES PROTEST.. The following is a copy of a letter received by the Ohinemuri County Council at its last meeting from the Waitemata County Council, the contents of which were endorsed by the council :— “The council desires to lodge a protest against the extra burden cast upon ratepayers by the imposition of a heavier rate, necessitated by a heavy sinking fund, in respect of short period loans. Under the regulations of “The Local Government Loans Board Act” the period of the loan has to be based on what is considered the life of the work,. but my council considers that the life of the roads is generally greater than anticipated, more particularly regarding side roads which have not much traffic thereon. There are also anomalies existing which are hard to follow. In the case of the Waipareira Riding loan (1929), the main highways to be constructed in permanent materials have been allowed 15 years as the term of the loan, whereas other roads to be metalled only have a term of 225 years. In the Waitakere Riding (192§) loan application, bridges on the main highways of similar type to those on other roads have a loan period of only 16 years, while bridges on ordinary roads have a period of 365 years. As the bridges are exactly of a similar type it is thought that the main highways bridge period should be fixed at 364 years.

“In any case, it is hard to obtain approval of ratepayers to a loan where a heavy sinking fund is involved, no matter how necessary the work may be, and it is thought that posterity should pay a little more than allowed by the board.

“Regarding many of the by-roads which are not subject to heavy traffic, it is considered that the full term of 36J years should be t allowed, as there are many roads to-day in t he country which are by-roads that were metalled 30 years ago, and which are still in a good state of preservation. “The council, after discussion with other councils and hearing their views, considers that consideration should be given to more elasticity of view as to the life of these roads.”