£100,000 LOAN.

Auckland Star, Volume LXVII, Issue 285, 1 December 1936, Page 10

£100,000 LOAN.

FRANKLIN PROPOSAL. COUNTY WORKS SCHEME. TAR SEALING OF ROADS. (From Our Own Correspondent.) PUKEKOHE, Monday. "I have been in close touch with the county clerk and the engineer regarding a county loan proposal covering main highways, county roads and bridges, the work to be carried out over a period of 10 years," reported the chairman, Mr. J. N. Massey, at to-day's meeting of the Franklin County Council.

Mr. Massey said that a good deal of information had, been obtained on the questions of costs and methods of laying down tar-sealed roads. The surfacing of the Drury-Awliitu main high-. . way from the Pukokolie borough boundary to Paerata afforded valuable experience in that direction. In addition the engineer had visited other counties' where tar-sealing works had been carried out, and every opportunity had been availed of to secure full information. An approximate estimate of the cost, of all works which he considered should be included in the loan proposals, had been prepared.

After considering the estimates, he would recommend the council to apply for the sanction of the Local Government Loans Board to the raising of a loan of £100,000 for a term of 20 years for the purpose of providing the council's share of the cost of improving main highways and other roads in the Franklin County, including the construction of new bridges. Should the council decidc to make application for the sanction of the Loans Board to the raising of the proposed loan, he suggested the authority to borrow the total sum of £100,000 be obtained on the understanding that if the poll of ratepayers is carried, only such portions of the sum be raised as are recommended by the Main Highways Board or Public Works Department from time to time. This would, be necessary, as the whole proposal wag dependent on the Main Highways or .the Public Works subsidies being made available. Savings in Maintenance. The rate of interest laid down by the Local Government Loans Board for local body loans was 3§ per cent, with another 3J per cent for sinking fund, making the total annual charges for a twenty years loan 7 per cent, or £7000. The special rate on the whole of the Franklin County required to produce £7000 would be just under one-third of a penny in the pound on the rateable (capital)* value of the county, which was at present £5,323,859. However, the special rate struck as security for the loan would not be collected unless required for the annual charges 011 the loan or the portion of the loan raised from time to time. After carefully considering the whole question and reviewing the council's expenditure over the last few years he was of the opinion that the annual charges 011 the proposed loan would be found by (a) savings in maintenance on the tarsealed roads, and (b) the carrying out of nearly all construction work from loan money instead of from the ceneral rate revenue for construction work. In addition, the general rate revenue hadjoiunl large sums for overhead and establishment expenses of relief work camps, and for supervision and the supply of materials and transport for relief works.' The increase of traffic in rccent years 011 the county main highways and main roads, the consequent heavy increase of maintenance charges, and the urgent necessity of continuing the past policy in providing all weather access for backblocks rate- • payers' had made the loan necessary. in recommending that the council proceed with the loan proposal, Mr. Massey said he did so with the conviction that it would prove in the end to be the most satisfactory and economical solution of their road and bridges problems.

After discussion in committee, it was agreed to vote at the next meeting, to be held on December 21,. on the question of applying to the Local Bodies Loans Board for its permission to hold a poll of the ratepayers 011 a proposal to borrow £100,000 to finance the council's share of carrying out such a scheme