LOANS FOR DRAINAGE PURPOSES.

Auckland Star, Volume XXXII, Issue 48, 26 February 1901, Page 3

LOANS FOR DRAINAGE PURPOSES.

BOROUGH BORROWING POWERS,

The importance of care being exercised at the forthcoming election of Borough Councillors was shown by :i discussion that took place at the meeting of the Grey bynn borough Council lust evening. The mutter under discussion \vas._U.c question of obtaining a loan from the Government for the purpose of completing the drainage of the borough. In the coui'-u ol: discussion it transpired that under the l'ublic Health Ace powers exist wuereby a borough Council can obtain a loan fur drainage purposes without flrst obtaining the sanci.loll ot the ratepayers, who have to pay the interest and refund the principal. With such extended powers it bell. .._ citiKeus to select their ropi-esenuiLives with great caution. Tiie discussion arose out of a letter received from the Secretary to the Treasury in answer to one sent from the Council

asking upon what terms a loan of £0000 couiti bo obtained. The reply was that a loau could In- grunted under the Public Health Act without inking a poll of the ratepayers, provided the work was recouinieiHled by the District Health Ollicer and approved by tlie .Minister for Health. Cr. *.. J. Aiiibui-y pointed out that in the reply received nothing was said as to the rate of interest, tlie number of years to pay oh' the debt, and whether a sinking mud was provided for. The Mayor said it was evident that the-, money could be borrowed without asking the conseut of ratepayers, provided it was for drainage purposes and approved as slated. He had sought information as to borrowing £13000, so us to have a drainage scheme to lay before them. Within tlie next few weeks they would have the official letter from Wellington. When that was received they could then place the whole matter before the ratepayers. He moved that the Mayor be empowered to take the necessary steps to call a meeting of ratepayers v,hen tlio Information was received. The Hielnnoud Ward members had gone over the ground with the engineer to sec what dralnuge was required in that section of the borough, and the Chief Health Ollicer (Dr. Mason) had also been ovor the ground and expressed himself In favour of the work being done. As regards the work already done, he might say that the money already expended was judiciously spent and would be iv accord with the general scheme if it were adopted.

Cr. Ambury said he did not object to anything that had been done so far, but they should be able to say to the ratepayers how the money could be got, for how long, and upon what term..

Cr. S. C. Brown asked if the Mayor proposed to leave the matter to the decision of the ratepayers. Apparently under the Act it could be done in defiance of the ratepayers, and it was no use calling a meetin., unless the decision of the ratepayers was accepted. He thought in a democratic country they should be guided by the wishes of the ratepayers. Apparently the whole matter rested with one or two men.

The Mayor said the matter of borrowing was never thought of as being done against the wishes of the ratepayers. At the same time he thought it was right to have the fullest information to lay before them.

Cr. Brown said he saw no reason why they should go under the Public Health Act at all, when they had full power under the Municipal Corporations Act to borrow with the ratepayers' sanction.

The Mayor said he understood the money could be borrowed much cheaper under the Public Health Act. Jh> never for a moment thought of forcing a loan upon the ratepayers. The Council was not committed to anything so far, and would not be without the consent of ratepayers.

The motion empowering the Mayor to call n public meeting of the ratepayers was thou agreed to.