EARTHQUAKE REPAIRS

Wairarapa Times-Age, 2 March 1943, Page 3

EARTHQUAKE REPAIRS

ALLEGED OVERCHARGING INVESTIGATION TO BE HELD. WELLINGTON COUNCIL’S DECISION. (By Telegraph—Press Association.) WELLINGTON, This Day. Decision to have all allegations of over-charging on earthquake repair contracts investigated and to continue to press for a Government subsidy of at .least 50 per cent of the total ’cost was made by the finance committee of the Wellington City Council yesterday. Persons who consider that they have been overcharged are to be asked to notify the city engineer and completion of payment on their account to the contractors concerned will be held up till inquiry has been made. Persons who had their repairs carried out on private contract are also to be asked to notify the city engineer so that they may obtain their share of any subsidy obtained from the Government. The council’s view on the extent of the subsidy which should be sought from the Government is to be communicated to the Municipal Association on Wednesday by the Mayor, Mr Hislop. The Mayor read a letter received that morning from the Prime Minister, Mr Fraser, stating that the Government could not undertake to meet the total cost either as a direct charge on public moneys or as a contingent liability against the War Damage Fund. “The Government,” Mr Fraser continued, “will meet the difference between the abnormal costs which have been incurred and what would have been /payable under normal conditions. In this connection the Government’s decision was conveyed to your council in a letter from the Treasury on February 12 and the position outlined therein will stand except that, with a view to facilitating the adjustment of individual accounts, no objection will be taken to the items which the Government is prepared to meet being treated as a fixed percentage reduction on all accounts.". i The Mayor said that after a previous discussion he had felt confident that a 50 per cent subsidy would be granted. It now appeared from the Prime Minister’s letter, however, that the subsidy would cover only such things as wet time and travelling time and would amount to not more than 20 per cent. “That,” said Mr Hislop, “seems completely inadequate.” Councillor McKeen said that earthquake repairs should not be any individual's liability. They should be ! a national obligation. With the War Damage Fund growing at the rate of £1,500,000 a. year, he thought it should be used. The Mayor said that the total amount involved in the minor earth- 1 ‘ quake repairs for the whole of the North Island was only about £140,000. After considerable discussion the council decided to ask people who considered that they had been overcharged to notify the council, and meantime to set up machinery to settle disputes.