THE POLLS.

Taranaki Daily News, 21 April 1921, Page 5

THE POLLS.

QUESTIONS FOR VOTERS. MANY ISSUES TO DECIDE. PROPOSALS EXPLAINED. At the instance of the New Plymouth Ratepayers’ Association, a meeting of ratepayers and electors was held last night in order that some of the issues to be put to a poll on Wednesday next might be publicly explained. There was an attendance of between seventy and eighty persons. The Mayor (Mr. F. E. Wilson), who presided, expressed satisfaction that the meeting had been called to give those interested an opportunity of discussing matters which would come up for final consideration on Wednesday. With such a large number of issues it was essential that they should be able to go to the poll with a full knowledge as to how to vote. Proceeding, Mr. Wilson dealt with borough financial matters, and especially on the proposal to increase the rate of interest on the hydro-electric loans. There was really not much he could say, more than what he had announced at the council table, but he desired to place the position before ratepayers fully, so that if possible the council would escape adveree criticism in the coming year. POSITION SOUND. Dealing with the general account, he said that this was the fund out of which the borough had to carry on its ordinary work, and it was maintained by the general rate. He was pleased to say that the position of the Borough of NeW Plymouth was thoroughly sound. They were not in the position of many local bodies in New Zealand—he know of one which had to refuse to pay an account of £2OO because the bankers would not honor the cheque, and its overdraft was £55,000. Councils in New Plymouth had always opposed large overdrafts. At March 31 last the overdraft was £9500, which was unfortunately slightly heavier than, in the previous year. It was due to the fact that the council very wisely decided some two years ago to bring the streets which had not been tar-sealed up to a thorough state of repair, because during the war years it was impossible to keep them up to the proper condition. During the past two years, therefore, the expenditure on the maintenance of the streets had amounted to about £22,000 per year, whereas previously the average was a little over £7OOO. The result, however, was that the streets Were in such a state now, especially, those permanently treated, that it was | expected that on the greater part of them no work would be necessary during the coming year. This had been considered in framing the estimates for tliQ coming year, and the street vde had. been cut down to £12,000, so that unless something unforeseen happened the overdraft he mentioned would be reduced by approximately £4500. Owing to the financial stringency, which he feared was going to last throughout the whole of the coming .year, the council would be unable to charge up to the loan account any portion of the wages find plant that otherwise would have been borne by loan account. Consequently the charges would fall on the general account, and this fund might also have to bear some of the interest in connection with the hydro-electric moneys, unless they were successful in raising the proposed loan. He would consequently like to point out to ratepayers that they must not expect during the coming year to have new work undertaken. He thought they would be fortunate if they were able to maintain what they already had. That, at any rate, was the outlook at present, and he hoped it would be the policy of the new council.

HYDRO-ELECTRIC LOAN. The difficulty in connection with securing moneys for hydro-electric works was next referred to by the Mayor. He pointed out that originally the works were undertaken before the present financial difficulties had appeared, but unfortunately the matter of securing a license had been hung up through certain opposition; had this not been so, the whole of the money could have been procured at the lower rate of interest then current, and the works would probably have been carried through to completion. It was absolutely necessary that the present supply of water for the hydroelectric works should be increased, as they had difficulty in keeping up the power within their own boundaries. . A further point was that a contract had been made to supply Inglewood, which should, if possible, be carried out, and there were •also other probable avenues to which power could be supplied. Favorable assurances had been received that the large scheme would produce the power which it was estimated to give. Unfortunately the cost of the operations had increased largely, but if there was any blame attributable it was not to be laid at the doors of the council. The works had progressed to such a stage that in the opinion of the council they pnist be completed if at all possible. They had incurred liabilities in connection with the hydro-electric extension amounting to £98,0,00, and if the works closed down through lack of further money the liabilities to date could be met, but it would meart that the machinery on hand and to arrive would be lying idle. They would deteriorate, and would have to be replaced at further cost when the works were again started. He was pleased to say that the works under the superintendence pf the resident engineer (Mr. Peerless) were being carried on at a less cost than the consulting engineers had estimated. If the council could possibly go ahead it was desirable that they should do so. During the year just passed the electric light department made a profit of £7OOO, which was transferred to the general account to help in the maintenance of the roads. If the roads had to be maintained without this assistance the rate would have been much higher than at present. This year the other branch, the tramways, had shown a profit for the first, time, the margin being about £4OOO. Thjs showed that the undertakings mentioned were greatly to the advantage of the borough, and were now reaching the stage of fruition.

FINANCE ABROAD. Reverting back to finance, the Mayor explained that two loans were authorised by the ratepayers—one for £72,000, and one for £60,000. It was the latter which they intended to try and raise outside New Zealand, as there was no chance of getting money in the Dominion. A Government guarantee had been, given, and there was a good chance of getting the money if the council paid a rate of interest similar to what was ■ruling for similar investments on the London market. It Was estimated that Wtnid AIMMJ 7,

cent, and while it was unfortunate that they had to pay such a rate, the works should be completed and the council would still be able to carry on at a profit though considerably smaller than originally calculated. An important point was that the works would be earning money to pay interest on the loan which had been raised, and which otherwise would have to be met out of the general account if the fresh loan, was not secured. The amount they would have to pay in interest failing the raising of further loan moneys was £5400 per year. What would happen to the streets and utilities if the general Account wate burdened by such a sum? It was in View of this aspect that the council had resolved that even at 7 per cent, the loan money required Would be cheap. ■

Mr. Wilson said he advised the ratepayers without hesitation to record their votes in favor of paying such a rate of interest as the council found necessary to raise the balance of the money to complete the works. As regards the unraised portion of the £72,000 loan, the council intended to ask the ratepayers to sanction paying 6 per cent, in an endeavor to secure some of the moneys in New Zealand. As part of it had already been secured in the Dominion they could not obtain a Government guarantee to enable it to be floated in London.

At the conclusion of the Mayor’s remarks the following resolution, moved by Mr. C. Carter and seconded by Mr. C. H. Burgess, was carried: “That this meeting of electors of the Borough of New Plymouth, recognising that it would be nothing short of a disaster to the town and district if the work on the hydro-electric extensions were to be closed down, strongly urges all ratepayers to vote in favor of the proposal granting authority to the council to pay an increased rate of interest upon the £72,000 and £60,000 hydro-electric loans.”