LOANS BOARD CONDEMNED

Sun (Auckland), Volume IV, Issue 976, 20 May 1930, Page 10

LOANS BOARD CONDEMNED

ONEHUNGA MAYOR INDIGNANT PROPOSALS NOW DROPPED The ambitious loan proposals of the Onehunga Borough Council have received a serious setback by the Local Government Loans Board, which has not only referred back the majority of the council’s propositions, but has directed attention to the borough’s existing indebtedness and the steadily increasing rates. The loan proposals amount to a total of £135,000, made up as follows:- — Municipal buildings, £16,000; Basin Reserve roadway, £7,000; roads and footpath, £110,000; ladies’ rest-room and kindergarten, ££2,200; swimming baths, £2,400. The onls' projeevt which has met with the Loans Board's approval is the swimming bath, and that is subject to certain conditions regarding the walls. Objection is taken to the municipal buildings loan on the ground that the proposed structure is in excess of the present requireemnts of the borough, but the board is prepared to consider an application for a loan for a modified scheme designed to permit of future extension. The rest-room and kindergarten is referred back for information as to the statutory authority under which a loan could be raised for a kindergarten, as it was not clear whether any authority existed for this purpose. The roading proposals, involving £IIO,OOO, were also referred back, as the board was of the opinion that a modified scheme should be drawn up providing for 6-inch concrete paving in certain streets. In regard to the Basin Reserve road loan of £7,000, the board notified that this work would have to be deferred, on the ground that it was not esesntial at the present time. Discussing the hoard’s attitude, the Mayor, Mr. E. Morton, at the meeting of the council, considered the council had been subjected to shabby treatment. “Here is a board in Wellington,” he said, “that presumes to dictate to this council and the ratepayers how they shall spend their money.” He contended that the council was in a better position to judge of the requirements of the borough than a body of outsiders. Mr. Morton then moved that a letter in the above terms be sent to the Loans Board. This was seconded by Cr. F. W. Mount joy, who regarded it as absurd that, after the council having formulated a longsighted, progressive scheme, a board in Wellington should reject it. Cr. H. Campling was not surprised at the Loans Board’s decisions. He held that new municipal buildings, a road across the Basin Reserve and several other proposals were not required. Cr. S. Vella did not favour a large loan at the present juncture and agreed with the decision of the Loans oßard. Cr. P. S. Lipscombe advocated delay until conditions were more favourable. Thereupon, the Mayor and Cr. Mountjoy withdrew their motion, which means that the loan proposals will now be dropped. The Mayor then outlined a scheme for constructing a swimming bath out of revenue. He pointed out how this could be done and the council agreed to place £BOO on the current year’s estimates for that purpose.