THE QUESTION OF FINANCE.

Shannon News, 17 June 1924, Page 3

THE QUESTION OF FINANCE.

NO AUTHORITY TO RAISE MONEY: HOROWHENUA TO PUSH FORWARD Several matters arising out oi file l oading scheme were belore’ the County Council on Saturday. The Main Highways Board wrote in reply to file Council’s memorandum tonvarding proposals re the. Main Highways, that these proposals were considered at the Board’s rneei- . ing on the 30th May when it was decided to subsidise the County’s proI posed expenditure of £148,007 on the { Waikaiiae—Tokomaru road, on' a £ 1 lor £ basis.

) in , regard to the Council’s request for a £as per centum subsidy on the portion of the highway from Wi'rqkino Bridge to Levin and from the Tokomaru boundary to Levin, and a subsidy of £6O per centum on ’file portion of tiie road from Levin to Waikanuc, file Board stated that they had no power to make such contributions except in such cases as roads were declared Government roads, roads being only so declared in sparsely settled or poor districts. They Md not consider that the Horowhenua roads' came under this heading. They wrote further that there appeared to be no provision in any existing -legislation enabling County Councils to raise loans for main highway construction. The Main Highways Board had, however, approached the Minister of Finance and it 1 was hoped that the necessary powers would shortly be gazetted. The chairman stated that this lack of provision for the raising of money was something of a knock-out but he did not doubt that ' something could be done. The County Was perhaps rather ahead of the scheme in having, drafted full proposals for the making of the roads before they were gazetted. It would appear that they might'lose next season, but he was not prepared to take this lying down. He would propose that they should approach the Minister of Finance for permission to take the poll immediately, provided they had a guarantee tliat it would be validated later. Fie did not consider that there would be any difficulty in getting the permission as the whole thing was only an omission’ on the part of the Government in framing the Act. It was thought that full provision had been made but it was only when the Coun-. ty officers had gone into the matter to discover the machinery for raising; the money that they found that no such machinery existed. Referring to the 50 per cent, subsidy the chairman stated that he was. vefy disappointed at the decision. As the Main Highways Board had no authority, to give more he thought that they might approach the Public Works Department for assistance towards the construction ' work necessary. This County was not in the position of others in that it had to take the traffic for practically the whole of the North Island and they should receive special consideration. Cr. TTarkness stated that the County was unfairly treated in . this respect. If the Mpin-Highways Board was going to give 50 per cent, right through this county, and give the same assistance to counties which had to take only their own internal traffic, a real injustice was being done. It would appear as if the whole Act was a hurriedly framed and half consid- i ered one and the Council should make i full protest against any objectionable features of it.

The chairman (pointed out that without the Horowhenua County roads the whole of the Main Highways scheme in the North Island would be useless and, he felt that the Government would recognise that. He was sure that the Minister of Public Works, the Hon. J. G. Coates, was earnestly desirous of doing- what he could to assist the counties. They niight get the roads declared Government roads, but he would be very sorry to see the roads go out of the hands of the County. They could not be sure when it would be done under the Government and .they could be sure that it would be much more costly than if done by the County itself. It was decided to send a deputation to tlhe Minister of Public Works askrug for permission to take a poll and also for assistance towards construction work. , JOINT LOAN URGED.

The chairman (Cr. Monk) brought up the question of finance for the scheme. There (would probably be some difficulty, he stated, in the local bodies getting’money and he felt that they should approach the Government asking them to raise a loan sufficient to meet the requirements of the bodies making main highways. Tins work was- of material importance and the Government should take it up. There was a danger that the different local bodies would compete against each -other in the money market if this was not done and the result would be dearer money. He moved the following resolution: “That a circular letter be sent to all other County Councils requesting that they urge the Counties’ Association to take up the matter of the Government raising a loan for the purpose of lending to local bodies interested in the construction of their roads under the Main Highways Act.” ( This was carried. ■