The Daily News. MONDAY, FEBRUARY 20. THE LOAN PROPOSALS.

Taranaki Daily News, Volume LIII, Issue 243, 20 February 1911, Page 4

The Daily News. MONDAY, FEBRUARY 20. THE LOAN PROPOSALS.

To-morrow the ratepayers of the borough will have an opportunity of voting upon the loan proposals promulgated by the Mayor for the extension of the drainage system and effecting street improvements. The total amount sought to be raised is £11,225, and the vote is to be upon the loan as a whole, and not upon the proposals separately, so that it will not be possible to vote for drainage extension and against street improvements, or vice versa. This is unfortunate, for many there may be who approve of the one proposal and yet are opposed to the other. As the works have been scheduled, it would, we recognise, he difficult to separate the issues, which have to be considered as they stand. At the ratepayers' meeting last week the Mayor said —

The Council had during the past tliree years carried out a lot of new work out of ordinary revenue, including formation and metalling of new streets, nnd had also laid down over a mile of sowers, but it was impossible to contiruo to do these new works out of ordinary r"VHiiio and maintain the streets and footpaths in good order, particularly now that the electric light fund had be?-i transferred to its legitimate purpose of extensions in that department. Every winter the Council received petitions and requests fro'.n ratepayers to have some of these new streets made passable. The Council's reply had generally been, 'Th -re are no fundi available."

It is perfectly true that Ihe borough has done a lot of new work out of ordinary revenue during the last two or three years, but so it should, considering the great increase in the cost, not to speak of the way in which the ordinary street work has been neglected. Writing on the subject of the horough finances in November last, we ventured' the opinion that the overdraft would by March be not far short of £2OOO. Unless work urgent and neees-1 sary is curtailed or not undertaken dur-! ing the next six weeks, the estimate will not be far out. The borough's finances have gone back to the extent of between £I7OO and £I9OO a year for the past three years. At the same time, the ordinary revenue has increased considerably, that of 1910 being, for instance, £3OOO greater than that of 1!)08. What have we to show for this increase in cost? The Mayor claimed, at a meeting of the Council on Xovember 14, that the special works had cost £3020. Giving him credit for another '£soo (to which we think he is entitled), and allowing that all the works were necessary and justified, tlje position is still far from satisfactory. It has to be remembered that there is always a certain percentage of the work done by the borough that can be classed as "capital expenditure." Even in the trying years of 1007 and 1008, the sum of £1472 was so expended. We do not believe the borough has had good value for the marked increase in expenditure. The condition of the roads and footpaths speaks for itself. The roads and footpaths are' certainly in no better condition now than they were three years ago. when the money spent on them was so very much less. Before going in for further loans, we think it preferable and sounder business to put our municipal house in order and inaugurate a system ensuring the obtaining of a quid pro quo for the money expended. In regard to drainage extension and street improvement, upon which to-morrow's poll is to be taken, the Mayor said at the meeting of ratepayers last week—

He did not think the rates would he raised. He contended that the interest to meet this loan would more than he paid out of the revenue of the 300 house's that were to be connected with the proposed sewer, and the increased valuation of building sites that would be opened up by the making of these new streets. He considered the proposal to he in the best interests of the ratepayers, and that it was much better to have these works done at once than to keep on floundering through mud and unformed streets. He hoped that those ratepayers who were living in streets that were metalled would vote for the loan, and give those who were living in the hack streets the same convenience.

The Mayor was more optimistic than convincing. The proposed roading and metalling will not materially enhance the value of the properties affected. As a matter of fact, not a small proportion of property in New Plymouth is already valued at too high a rate, and, instead of an increase in value, it would, speaking in a general way, he more reasonable to anticipate a lowering to a less fictitious point. High values do no town any good; on the contrary they retard its development, and are, therefore, inimical to its interests. When completed, the works will require maintenance, the cost of which will have to go against any appreciation in the rates. The works may be as necessary ai| the Mayor thinks, but we cannot believe they are so urgent as to demand the raising of a loan for the purpose, especially at the present time. We do not think the sky would drop if the works were left over until the borough is in a better position, when they could be done out of revenue, as they might have been had better management on the part of the Council prevailed during the past two or three years. TT, however, experience proves that the money cannot be saved, and the works are imperative, it will be time enough to consider the question of raising a loan for the purpose. As for the drainage proposals, we believe they would, as stated by the 'Mayor, prove, self-support-ing. We prefer, however, a wider scheme —one embracing the Te Henui end as well as the parts mentioned in the present schedule. Such a scheme should find general acceptance. Viewing the way in which we have steadily gone back, the present state of the finances and the extent of the municipal debt, the unsatisfactory condition of the streets, and the bungling that has characterised the administration of tho—a£fairs of the borough of late, wc cannot

help feeling it would be unwise to sanction the present loan, and that ratepayers would be consulting the best interests of the borough and themselves by negativing the proposals.