POWER SCHEME.

Taranaki Daily News, 27 September 1921, Page 5

POWER SCHEME.

QUESTION OF A SURVEY. A LOAN OF £9OOO. RATEPAYERS TO DECIDE. POLL TO BE TAKEN. The New Plymouth Borough Council decided last night that a poll should be taken on a proposal to raise £9OOO, for the purpose of making a survey of water available for hydro-electric works, and for enlarging No. 2 tunnel. The motions were tabled by the Mayor a fortnight ago. as the result of a request made by a ratepayers’ meeting in favor of a survey, but discussion had been held over. Certain preliminary formalities have to be complied with, and the poll cannot be taken earlier than a month hence. The terms of the motions are : (1) That all resolutions in the council’s minutes, expressly or impliedly restricting the hydro-electric works to such as have been approved by the ratepayers, be rescinded.

(2) That a poll of the ratepayers be taken on the same day as the other proposals already authorised on a proposal to raise a special loan of £9OOO for the following purposes: (a) To provide a survey, with estimates, of available water for the present hydro-electric works, and to enlarge No. 2 tunnel by approximately seven inches in the radii with which the contour of the tunnel is struck; (b) the sum proposed to be borrowed at a rate of interest not exceeding 5j per cent, per annum, with a sinking fund of lj per cent. REASON FOR THE POLL.

The Mayor, in moving the motions, said that in the second he had omitted to insert the date of the loan—namely, 1933. Proceeding to speak in support of them, he said the council would remember that when the first deputation waited on the council, and asked that the tunnel be enlarged he had made the remark that he would not be a party to enlarging the tunnel, necessitating large expenditure, without the approval of the ratepayers being expressed at the poll. His motion had been criticised as a move antagonistic to the wish expressed by the recent meeting of ratepayers. It was, however, in no sense antagonistic, but was following out his views as expressed at the outset. Explaining his object in taking a poll, the Mayor pointed out that the council would be taking a poll on another matter shortly, and at the same time they could obtain the views and the authority of the ratepayers for raising the necessary money. He had set down the amount required at £9OOO. The engineers had advised that £B5OO would cover the cost of enlarging the tunnel, and he believed this was on the safe side. He had added £5OO to cover the cost of the survey, which, he thought, might hardly be enough. Therefore he had put the total needed at £9OOO. He did not propose to include the first year’s interest, or the cost of raising the loan, as he did not wish to overload it. They were now in a position to start driving the tunnel from two new points, and it was highly desirable to have the question of size settled at once and for all time. He thought the best course was the one he suggested. A GOOD JOB WANTED. Cr. Blackhall seconded the motions, and said he believed the move was in the right direction, and that they were working in the best interests of the ratepayers. They were considering the future as well as the present, and he had no doubt that if the question was put faithfully before the ratepayers they would see the need for obtaining a further sum to complete the work and to make a really good job of it. There was no one who had the interests of the town at heart who doubted the advisability of constructing the tunnel at the larger size. He believed that if there was further power available they should prepare the way for it, and he thought the ratepayers were also of that opinion. He had talked to quite a number, and ail had agreed that the present was the time to complete the work. If they went on with opening the tunnel at four different points at the smaller size, subsequent enlargement would mean a lot more work. The Mayor explained that if carried the motion would not in any way prejudice the proposed visit of a Government engineer, because if he reported adversely (in regard to other power sources), and the council decided not to go on with the work, they could drop the question of a poll.

Cr. R. L. Parkin pointed out that about five weeks would elapse before the poll was taken, and he questioned whether it was advisable to go on without concreting. He pointed out that, judging by the present rate of progress, it would cost about £4OO for timbering the length driven in the meantime, The Mayor said the men could be put on to laying the tram line the full length; there was plenty of work to go on with for a month, apart from the tunnel. He did not think there would he very much delay, for the tunnel could be proceeded with as soon as the poll was held. Whatever the councillors’ views were, all were agreed that they did not want any delajn THE RATE OF INTEREST. Cr. J. Brown pointed out that the proposed rate of interest was 5J per cent., with 14 per cent, sinking fund. He did not think that the loan could be raised on this interest, even if the poll was carried. The Mayor admitted that probably the rate would have to be increased. Cr. Brown said it seemed that they would be no further ahead at the end of taking the poll. Even if a further poll had to be taken on the question of the rate of interest he doubted whether the ratepayers would agree to pay 7 per cent. It might be nearer two months before finality was reached. The Mayor said there might be a likelihood that the end of the work would be hung up because the council had run out of money and they could not finance the job; if this happened, however, the blame could not be put on the council. The position was that there was a majority of the council against doing the work, and there was a section of the ratepayers who wanted it done. Therefore, he said, let the council find out whether the majority of the ratepayers favored the proposal. It was the quicker way. He was not asking councillors to vote for the motion; they could reject it if they desired. Cr. J. Kibby inquired whether the council might not have to take another poll before the Government gave permission to pay 7 per cent, interest. The Mayor said this was likely. He pointed out that probably a public meeting would be held and the whole matter would be explained to the ratepayers before the poll. The object now was to get the opinion of the ratepayers more than anything else. Cr. Kibby asked if the council Was

putting a fair proposition. They proposed raising £9OOO at 51 per cent., and in the same breath were also asking the ratepayers to sanction a loan of £143,000 at 7 per cent. The Mayor said this was not quite correct. The rate of the big loan was mentioned as 5| per cent., but a further poll was being taken asking the leave of the ratepayers to pay more. Cr. Blackhall said he thought the ratepayers knew perfectly well that 5| per cent, was the rate to which the council were bound, but that they could not get it at that, and would have to pay about 7 per cent. Cr. Brown said he was satisfied one half of the ratepayers did not know anything about these loans, or what they were costing to raise. If a meeting was called to explain matters he would have no objection.

The Mayor said that an additional proposal could be made at the same poll—namely, that the council be given power to pay an increased rate, which they hoped would not be more than 7 per cent. This was the course that was being adopted in connection with the big loan. Cr. W. Rumball said he tyould subsequently move that the council also ask approval at the coming poll to pay an increased rate. The motions were then carried without further discussion, and the motion proposed by Cr. Rumball in regard to the proposal for the increase in the rate was also eAwiad.