MAYOR'S LOAN PROPOSALS

Taranaki Daily News, Volume LIII, Issue 185, 15 November 1910, Page 8

MAYOR'S LOAN PROPOSALS

DISCUSSED BY THE BOROUGH ■COUNCIL. At the Borough Council meeting last night the Mayor brought down his .scheme to borrow £3OOO from its bankers by way of overdraft for street formation and metalling in some of the bystreets of the borough, llis Worship said the schedule consisted wholly of new I works, which it was quite impossible I for the Council to manage out of ordinlary revenue. The Council had been rej peatedlv requested, by letter and by petiI tion, to* greatly improve these bv-stre.ets, ' but, owing to lack of fu-nds, the reply ' had been ever the same, "that the matter jhas been referred to the incoming Estimates Commiteee for favorable consideraI tion." The next year's Estimates Comjmittee would hold its first meeting in 'May, when winter would be on them; whilst this Council had fully six months •in which the weather would be more fav'orable for the carrying out of street [works. The question was whether it I would not be in the interests of the ratej payers to have good and permanent work {done at once, even though such a policy had the effect of increasing the indebtedness of the borough by another £3OOO, which meant an annual interest payment of £lso—a trifling sum when spread over the whole borough. He thought the ratepayers would rather have his pro'posal adopted, and good permanent work done now, than to wait another year and. wade through another sea of mud I nest winter. By way of return for the 'expenditure, he pointed out that several 'good building sites would be made accessible, and the additional rate revenue would miore than compensate the Council for its'expenditure. It was the absence of metal in such streets that was i driving many people to build in Vogeltown and other suburbs. His Worship said that the Council should be able to repay this loan in a very few years, and in proof he instanced the amount of new work that the Council had been enabled !to do out of ordinary revenue in the j past two and a-lialf years. The list ineluded: Vivian-street, £300; Bulleri street, £94; Fulford-street, £7B; Penj darves-street, £81; Gill-street East, £143; Devon-street (at Te Henui bridge), £35; Devon-street West (culvert and swamp), £.235; Mill road, £81; waterworks by-pass, £278; purchase of old .railway bridge and line, £750; a mile of sewers, £500; concrete kerbing and channelling, £850; additional subsidy to Recreation Grounds, £150; and £SO expended in connection with the dedication of a street adjacent to the late Major Parris' estate. Mr. Tisch remarked that in quite a number of eases the new works had been followed immediately by the erection of residences, which he considered excellent businessi The work in Leach-street would give access to a number of houses that had been fronted by a mud road for many years, and would 'also enable part of the east ward to be {connected with the present town seweriage system, whilst there was no question | concerning the benefit to be derived from opening up the old railway line through Jto Fitzroy. Morley-street was an important thoroughfare, and Barrett-street, in the same neighborhood, was also much in need of. metalling. Dawson-street, from St. Aubyn-street to the Esplanade, was a disgrace, and should be metalled, whilst the works proposed in Vivianstreet W r est, Buller-street (at new Goverstreet), Eliot-street and Molesworthstreet North, were all works that would lead to increased values bv increased occupation of land in those localities.

Cr. Watkins seconded the Mayor's motion, and considered the works scheduled could be done for less than the figures mentioned by the Mayor. ■Cr. Bellringer considered it rather a big order for such a late hour, and suggested that the scheme he referred to the' Works Committee for full discussion and further report to the Council. Cr. Browne was of a similar opinion, and said that there were one or two other works which should he included.

Cr. Gilbert believed in the scheme, and thought the Council should deal with it right away.

Cr. Wilson reminded the Mayor that not so very long ago lie had informed the Council that the working account was greatly overdrawn, and that the overl draft at the end of the year must be very much larger than had been anticipated, unless the Council cut out some of the work? which had been authorised for a couple of years or more. Admitting that all these works were necessary, was it desirous for the Council to borrow in order to carry out works that were not actually reproductive? He contendjea that unreproductive works should be done out of ordinary revenue, leaving borrowing for such undertakings as electric light, sewerage, etc., which were in ] terest-earning. The Council must take < into consideration that during its term ' it had reduced the credit balance it started with to a debit balance which , would probably amount to £IOOO at the lend of the year. On top of this, tTie Council proposed to institute a tramway system, which, even in the estimate of

the most sanguine, would need a separate rate in order to lyilance its finances at lirst. Despite this, the Mayor now proposed to increase the overdraft by another £31)00, and towards the end of his and the Council's term of office! Was it well to borrow now, and tie the hands of the incoming Council with an overdraft of £5000? It would mean the imposition of an extra rate to wipe out the indebtedness. Again, the Council contemplated the inclusion of part of Fitzroy in the borough, and it was held out to the Fitzroy people as an inducement that their rates would be reduced. If so, the Council's income was going to lie reduced. Where was the money to come from? The Mayor himself had supplied the most trenchant argument against his own scheme when he had referred to the new works which had been undertaken, costing £4OOO, out of revenue in the past two and a-half years. Were these proposed works so vitai that they could not wait until they could be financed in a similar manner? Cr. Dockrill also opposed the motion, and particularly on account of the proposed method of raising the money. If money had to be borrowed, let it be by way of loan. The overdraft proposed could only be repaid out of rates, and it would mean a rate of Is 3d in the £ if it had to be undertaken in any one year. The Mayor: Xo one suggests paying it off in one year. Cr. Dockrill said that a rate of 3d or 6d in the £ would be necessary even if spread over several years. He considered it very inadvisable to proceed with the proposal at the end of the Council's term, and it would be improper to place this incubus on an incoming Council. If it were at the beginning of the term it would be quite a different matter. Cr. Bellringer renewed his suggestion to have the matter dealt with by the Works Commiteee, urging that it would be most unfortunate to force the matter to a vote now, for there was much good in it, but it would be defeated as it stood now. Cr. Clarke's objection to the scheme was that it was not big enough. Thenwere many other streets equally in need of attention, and he would like to see the Council introduce an east ward drainage scheme at the same time as this loan proposal. He also considered it would be unfair to pne up a big overdraft for the incoming Council. He would like to see the proposed works put in hand, but he could not support the scheme as outlined.

The Mayor said he had no feeling in the matter, and the whole matter was referred to the Works Committee.