The Daily News. WEDNESDAY, NOVEMBER 2, 1921. THE BOROUGH LOANS.

Taranaki Daily News, 2 November 1921, Page 4

The Daily News. WEDNESDAY, NOVEMBER 2, 1921. THE BOROUGH LOANS.

At to-day's poll on loan proposals submitted by the New Plymouth Borough Council for the decision of the ratepayers are two which cannot be avoided. The first is, unfortunately, for authority to borrow money for repaying loans which fall due in October of next year, and in respect of which no provision iar a sinking fund was made. The amount of this loan has been fixed at £142,000, though the loans included in thie sum only amount to £134,200, so there will be a -margin for present requirements. There is no option but to pay off the expiring loans, and it is necessary also to give the Council a free hand as to the rate of interest to be paid, owing to the difficulty of obtaining money for municipal loans unless the interest allowed is sufficient to attract investors. The Council may be trusted to do their best to obtain the money at the most reasonable rate possible. With regarl to the proposal for raising £lO,OOO for extensions and additions to the borough water mains, there should be no hesitation in sanctioning a loan for a purpose so vitally necessary for the community. The borough has grown in extent and in population, necessitating the provision of an adequate service of water. Thi-s is a matter that can no longer be delayed, if only for health reasons. It should, however, be remembered that the service is revenue-produc-ing. and therefore a good asset for the borough. It is unlikely that any future loan will be raised without a sinking fund, so that it will gradually redeem itself. As both these loans have to be faced. the ratepayers are morally bound to cast their votes in the affirmative. The third proposal, to authorise the raising of a loan of £9OOO for increasing the size of No. 2 tunnel, etc., in connection with the hydro-electric scheme, is in a different category, but none the less merits the support of ratepayers. By making *provision now at a cost of about £6OOO (a cost based on actual work now being done at the tunnel), the works will be in a position to deal with any additional power resources that may be obtained in the future, resources that the consulting engineers and the Government hydroelectric expert firmly believe can be profitably developed. Besides, the extra size of the tunnel will enable additional power to be generated—4B h.p. in respect of the smaller scheme and 144 h.p. in respect of the larger scheme. The revenue from this additional power will not only pay interest, but the principal itself in the course of a few years. The bigger tunnel would further enable the borough to deal with Messrs. Summerson and Sons, who desire to establish extensive iron and steel works in New Plymouth, and any other firms wanting to start, industries in the town or district. The chief reason why the ratepayers should give the proposal their unqualified support, however, is the fact that New Plymouth is bur the trustee of the whole province in the matter of hydroelectric development, and it is its bounden duty to do everything within its power to make provision for future needs, not only of the town, but of the province. So far

the town has not failed in this respect, and we hope it will not do so now, especially when such a comparatively small amount of money is involved. There should he need to ever raise the money, for by

the trend of prices, etc., the £6OOO, and a great deal more, will be saved from the present loans. There was really no need for the proposal to be placed before the ratepayers; the council had full power to proceed with the work, but it has chosen to consult ratepayers in this way, and we trust they will rise to the occasion and give it their unanimous endorsement today.