HEAVY LOSSES.
LAND DRAINAGE SCHEMES. GENERAL TAXPAYER PAYING. IMMEDIATE STOPPAGE ADVISED. The State has provided for the purposes of swamp land drainage £783,500, says the National Expenditure Commission. "On a "conservative basis it is estimated that the sum *of at least £500,000 (and probably more) has been lost in these drainage operations, and wo feul bound to state that the results are such that no further schemes should be undertaken. We further point out that it ehould have been. evident many years ago that the continued expenditure of public money on several of the schemes was not justifiable in view of tho potentialities of the areas and the impossibility of obtaining an adequate return for the capital expended." The drainage schemes financed from tho fund established by the Act of 1915 were:—Kaitaia, Waihi, Poukawa, Hikurangi, Mangawai and Harihari. The commission comments on each, and a summitry of its comments on two in North Auckland is given below:— Kaitaia. The total capital expended is £300,200, of which * £85,400 represents interest during construction. These works arc now completed, and rates are being levied on lands in the area for capital and maintenance purposes. When the works were initiated it was considered that the whole ef the capital cost would bo recoverable from the ratepayers in the area, but on completion it was necessary for the Government to write down the capital cost upon t which rates are levied. The cost has been written down to £65,200, so that the loes on the scheme as at March 31, 1931, amounted to £232,000. The general taxpayer must, therefore, meet interest and sinking fund on almost four-fifths of the cost of the Kaitaia scheme. In so far as maintenance is concerned the Government is also providing assistance to the extent of £980. "We are of opinion that the time has arrived when the control of theee works ehould be handed over to a local board, and we recommend that tho law be amended in this direction. The Government should have majority representation on the board. It is only by this means that continued application for Government assistance tun be checked. There is no justification for any further burden being .thrown upon general taxation. The residue of the capital cost repayable by way of rates should be treated as a loan to the board." Hikurangi. Theso works also are still in course of construction, and as at March 31, 1931, tho capital expenditure, including interest during construction, was £27!),200. Tho estimated cost when the works were first put in hand was £98,500. "There will bo a very large loss in connection with tho drainage operations on thie area, and after reviewing the prospects we recommend that the works be closed down immediately." The works have been under construction for some considerable time, but no endeavour has been made to levy rates in respect of capital or maintenance charges. This, we consider, is wrong, and we recommend that investigations be mado immediately with a view to levying rates at least for the maintenance of existing works, provided that it can be demonstrated that the land has received, and will continuei to receive, gome benefit from the works.
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Bibliographic details
Auckland Star, Volume LXII, Issue 233, 1 October 1932, Page 11
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530HEAVY LOSSES. Auckland Star, Volume LXII, Issue 233, 1 October 1932, Page 11
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