£200,000 LOAN.

Auckland Star, Volume LXVI, Issue 223, 20 September 1935, Page 12

£200,000 LOAN.

CITY HOUSING PLAN. SPECIAL ORDER PROCESS. POLL WILL NOT BE TAKEN. The Auckland City Council decided last evening to take steps to raise the proposed loan of £200,000, less subsidy, for housing by special order, an amendment to refer the proposal to a poll of the ratepayers being defeated. The council received a communication from the Local Government Loans Board asking whether the loan would be raised by poll of ratepayers, by special order, by consent of ratepayers under the Local Bodies Loans Act, or under a special authorising Act. The town clerk asked for direction as to how the application was to be made, and said that it would also bo advisable to determine the currency, the rate of interest on the loan, and whether repayment would be provided by sinking fund or on the instalment repayment basis. When those matters were decided, formal application could go forward as soon as estimates and plans were supplied. Exemption Provided. The deputy-Mayor, Mr. B. Martin, moved that application be made to raise the money by special order under the provisions of the Municipal Corporations Act. The Government was of the opinion that it was not necessary to take a poll for workers' dwellings, and exemption had been provided. Therefore there was no reason for the council to go out of its way and take a poll, as the scheme would be self-supporting, in spite of suggestions to the contrary. The fundamental proposal was to provide work for unemployed. Representatives of the Unemployment Board had said that there was less revival of building in Auckland compared with any other city in New Zealand. Mr. J. S. Stewart said that at the last meeting of the council they went into committee to discuss the scheme, and it had been disconcerting to read in the Press that certain information had been divulged. It was a reprehensible thing if it had been done wittingly while the council was negotiating for options.

A. point of order was raised at this stage. The Mayor expressed the opinion that Mr. Stewart was out ot order, but he agreed that it had been wrong. He had tried to ascertain where it came from, and he hoped that it would not happen again. Mr. Stewart said that the council had shown intelligent anticipation of the Government's action. Ratepayers' Right. Mr. H. I'. Burton claimed that the rate, payers had the right to be consulted. The council had the right to raise the money by special order, but it would be the wrong thing to do. Mr. Burton moved as an amendment that the Local Government Loans Board should be asked to facilitate the loan and that a poll of tho ratepayers be taken. Mr. W. T. Andcrton said that the council should act oil the rights that it had and go on with the scheme as soon as possible, as it would be self-support-ing and not cost the ratepayers a penny. Mr. E. F. Andrews said that the council had a direct mandate to do the job and they should do it as soon as possible. He said that there were families in Auckland living "under conditions where he would not house a prize dog." Mistake in Tactics. Miss E. Melville said that it would be a mistake in tactics if the council embarked on tho scheme without the endorsement of the ratepayers. There was no reason why they should not trust tho citizens. She believed that the loan would be carried at a poll if the council supported it.

Tho Hon. T. Bloodworth supported the amendment. Housing wan a third of the proposed loans, and the ratepayers might refuse to sanction the balance. He suggested that the ratepayers should be asked to decide the whole issue instead of being asked to vote on two-thirds of it. It was bad tactics to do it in the way suggested. >!r. E. -T. Plielan paid that the legislation was placed on t'ie Statute Book to be taken advantage of. The council were going to clean up some, of- the slums of the city, as the conditions under which some of the people of Auckland were living was a disgrace. Mr. F. E. Lark said that the Government intended to force local bodies to make a survey of the conditions under which people, lived, as private enterprise would not take the work on unless there was a profit. Deputy-Mayor's Reply. Speaking in reply, Mr. ilartin said that they were not afraid to take it to the ratepayers, but they were going to do what the Government suggested was the right thing to do. The amendment was defeated, those supporting it being Miss Melville, Messrs. Burton, Donald, Coakley and Bloodworth. The motion to raise the loan by special order was then carried. It was proposed that the rate of interest should not exceed ,'U per cent, that the term should be 33 years, and the rate of sinking fund should bo 1J per cent.