SUBSTANTIAL HIGHWAYS SUBSIDY REFUSED.

Shannon News, 12 October 1928, Page 2

SUBSTANTIAL HIGHWAYS SUBSIDY REFUSED.

WAIPA COUNTY'S ACTION. It will be remembered that at its September meeting the Waipa County Counci! considered an offer from the No. 2 District Highways Council of a £3 to £1 subsidy towards the reconstruction and paving of the section of the Great South Road extending from Hamilton to Ngaruawahia. The council decided not to accept the off<>r, and the county chairman and county cleric were deputed, to'draw up a letter giving reasons for the council's view of the matter.

At last meeting the letter which had been forwarded to the Highways Council, was read and approved by the-council. The council's reasons for refusing the subsidy were set out as under:—

"I. That if the interest and sinking fund alone on the capital cost of the proposed work -would exceed by approximately £174 per mile the present annual cost of. maintenance of the highway, which in it;*' present condition is quite suitable for the requirements of the ratepayers of the county, seeing that there.is available for their use a navigable river and a railway running almost parallel with such highway, the council considers such proposal is economically unsound.

"2. Taking into consideration the geographical position of the road and the almost exclusive use made of it by foreign traffic, as revealed by the summary of the tally of traffic in the hands of your, board, the offer of the Main Highways Council is considered inadequate. "3. That, having in mind the warning given to representatives of county councils at Wellington two months ago by the Hon. the Prime Minister of the clanger of local taxation, the council considers that unless it -can be shown that a saving will be effected in maintenance, it would not feel justified in asking the ratepayers to pledge their properties as secuiity for the interest and sinking, .fund for a loan which would increase, rather than decrease, the burden of taxation. "4. That the council would not feel justified in seeking the sanction of the Local Government Loans Board to the raising of a loan for the purpose of providing a road—in the nature of a luxury so far as the fanning community is concerned —almost entirely for the immediate benefit of outside traffic, unless the cost of the work is borne by the user in proportion to' the use made, or likely to be made, of such road."