THE DRAINAGE COMMISSION.

Press, Volume LXIII, Issue 12827, 11 June 1907, Page 8

THE DRAINAGE COMMISSION.

• RURAL v SEWAGE AREA. OPENING OF THE ENQUIRY. Air W. S. Short, who has been appointed a commissioner to enquire into the dispute between local bodies and the Christchurch Drainage Board, began his investigations at the City Council offices yesterday. Thero was a large attendance of members of tho various local bodies interested. SiATEAIENT OF CLAIM. The claim is made by tho Heathcote road district, the Avon roud district, tiie KicL-artoii road district, the bprcydon road district, the borough of H oolston, and the borough of New Brighton. Alter giving the history of the drainage Boaids operations under various Acts, the statement'of claim sets forth that if, since tho incorporation of the Hoard to date, the lands of the sewage area had been rated in accordance with tho Act of l!)0t), that area ought to have contributed to the funds of the Board £37,53:1 12s lid. But, as a matter of fact, that sum hud been contributed almost wholly by tiie suburban districts, in excess of what they should equitably have contributed. Calculating interest on the amount for tho time being overpaid by the rural rating district up to .March 31st. 1907, ut 4 per cent, per ii mm in simple interest, tho sewage area*, should be debited in the bouk3 of tho Board with the sum of £56,330 ls Gd. of which amount £53,15G 8s Id stiould stand to the credit of the rural areas in -proportions set out in tlie _»tate:ne.nt. The sum contributed to the sinking fund for repayment of tho loan by rural areas in excess of what equitably they were rem ii red to contribute is' £20,050 9s Gel, which is included in the sum of £37.533 12s lid mmiifinod above. Nevertheless, the rural districts are still liable to contribute to the sinking fund until tho loan matures in 1020. The statement of claim goes on to declare that notwithstanding tho powers conferred upon tho Board to exceed the shilling rate, it. has made no effort to remedy the grievances of the suburban or rural districts. It is c.ntpiide 1 that tho sowace area should be called upon forthwith to repay to the Board such Finn of £37.533 12s lid, with interest thereon ht 4 per cent, per annum, making in all the sum of £53.456 Ss Id, that such sum should be raised by special loan without poll nnd secured by a special rut. upon the sewage area; that such sum when rnisrd should be placed to the credit of the suburban or rural districts in certain proportions, nnd held by the Board in trust, to be spent from ti'Vf to time upon such districts until exhausted. It is further contended that the annual recurring charges of the Board incurred in cleaning out the rivers Avon and Heath-cote and their tributaries, and various drains, hive been inequitably allocated between tho sowage area and the suburban or rural districts, and should bo debited against tho various contributing areas according to the benefits receive:', and not according to the chain-ago frontage in each district. The Commissioner will be asked to adjust this. The statement of claim also contends that the inequities have been due to tho manner in which the members of the Board have been elected, and to tho method in which the accounts of the Board have been kept and presented to members. STATEMENT OF DEFENCE. The Board, in its statement of defence, sets forth that about 1890, as the result of a case brought against it in the Supreme Court, it had to set aside an annual sum to provide a sinking fund to meet the payment of a loan of £200,000, which will fall due in 1926. At that time the sewage area wasfcatod up to the limit, which is Is in the pound, and the Board could not obtain any fund* from the sewage area to comply with the order of tho Court. It was, therefore, compelled to obtain the necessary funds from the rural areas, and it levied a rate in those areas in order to obtain tho sinking fund. This rate was enforced until 1900, when owing to tlie increased rateable value of the property in tho sewage area, tho Board was able to obtain from the shilling rato in-that area a sufficient sum to meet the Board's ordinary requirements' and to provide the sinking hind, and tho rato on tho rural areas was discontinued. While the rate wa& in fore*, tho rural areas paid the sum of £29,000 into tho Boards account Between 1876 and 1881 the rural areas contributed tho sum of £17,000 in rates. . That sum Ls about £3000 more than tho sum spent by tho Board in tho rural areas. It was spent in the city, in maintaining tho drainage system. In addition to the earn of £29,000 contributed by the special rate, tho rural areas have paid their own share of the sinking fund. The Board states that if it hid been empowered to increase tho rate of ls in tho pound on property in the sewage area it would not have rated tho rural areas. In that case the sewage area would have been compelled to find £29,000, and that sum represents the proportion which tho sewage area would have been liable for in connection with the loan of £200,000. The Board, therefore, is prepared to submit to any finding the commissioner may mako * in regard to the repayment or otherwise . of the sums cf £29,000 and £3000, but it submits that no interest should bfc allowed. The local bodies object to the Board's method of making annual charges in rcigaild to cleamrrig tho Avon" and Heathcote rivers and the drains by tho chainago frontage, but the Board maintains that that method is just and equitable The Board states that the manner in which the members of the Board are elected has always worked satisfactorily, and that thero is no reason why anv'change should be made; and it maintains that its system of bookkeeping is as efficient as it is possible for it to be. Mr T. W. Stringer, Iv.C with him Air A. F. Wright, appeared for the local bodies in the rural area. Mr T. I. Joynt, K.C., said he represented tho Avon Road Board as their solicitor. He understood that each ol the rural districts intended to oe represented individually, as. well ns collectively under .Messrs Stringer and Wright. He understood that tlie Commissioner had expressed an opinion that the various local bodies in tho rural areas ought to bo represented by their solicitors. *Tho Commissioner said ho had not expressed such an opinion. Air Joynt said ho reprosente. on*> of the local bodies which might have to tako ulterior action. Air George Harper said he represented the Riccarton Road Board. Tho Commissioner said the only difficulty of that would be that it might tend to prolongation of the proceedings, it was the wish ot the Government that the very fullest enquiry should be made into the alleged grievance. Of course, in a doublo representation of certain local bodies thero would be the difficulty as to cm--ex-amination. He could understand Alessrs Joynt and Harper watching the case on behalf of individual local bedies. Air Stringer said he did not think there would be any difficulty in th. collective and individual representation. The Commissioner said he had no objection to the dual representation, and if there was no abjection raise-1 by tiie other side he aupposel nothing further need be said about it. 3lr F. Wilding, with him Mr F. Cow-

ushaw, appeared for th. Christchurch City Council, and Mr T. G. Russell lor the Christchurch Drainage Board. The Commission was then read, and Mr Short briefly to the statement of claim." He said ho had received a copy of the statement of defence of the Drainage Board, but not the defence ot the City Council. He then stated that the claim was as set rorth above. Tlie issue re-ally was whether the outside bixlies were i entitled to the sum of £53,450. I Af r Stringer said as between the outI side bodies and the Drainage Board ! they had agreed tho sum that j should be paid by the Board to the local bodies should bo £32,000—that j was, £20.000, plus £3000 interest. The [ claim was for £37,000. The Commissioner: No agreement has j been como to about the additional interest. Mr Stringer: That is so. The Commissioner: Do you still claim it? Air Stringer: Yes. The Commissioner said tho first question was as to whether the additional interest should be paid on the sum of £29,000. That was tho pesi'tion between tlie Drainage Board and the outside bodies, but ho did not know the position between the Christchurch City Council and t'uo plaintiffs. .Vir V. iiding said tho City Council had not yet seen the Board's statement of defence*. The Council's representatives would peruso the statement just -furnished to the Commissioner, and would submit thoir statement of defence by next morning. The Commissioner asked if thero were any other issues. Mr Wilding said ho understood that other issues would bo raised by tho City Council. CASE FOR THE RURAL AREAS.. Air Wright then, at considera.lo length, opened the case for the suburb:_i bodies within the rural areas, 110 went very fully into the history of the legislation affecting tho Christchurch Druinugo Board, and also into tho history of tho Board since its incorporation. The BoaTd came into being in 1675, no doubt largely owing to tho insanitary conditions which had existed in certain parts of the district. That Act affected a considerable area of land around tho city, and the Board was given very far-reaching powers in regard to drainage. At time 3 there had been some little friction between certain of the local bodies within the rural area and tho Drainage Board. Tho local bodies within tho rural area asked the Commi_ioner to recommend the Government to promote legislation compelling tliD Board to repay to the rural area.? the 6iims whicli they contended had been,unfairly levied by the Board oh the rural areas. Any attempt of the Drainage Beard to do justice to tho rural areas had been opposed by tho City Council, .by the city members on the Drainngn' Board, or by tho city members of Parliament. It would, no doubt, be contended that tho moneys which had been over-paid by-tlie rural areas had been paid by the ratepayers, in tho rural districts • and not by tho districts themselves. The representatives of the rural areas did not admit that t but contended that if there was to bo a refund it should be to the district from which tho moneys wore received. Although tho money could not he returned to all the ratepayers who had contributed it, justice oould. however, bo dono to GO or 70 por cent, of tlie peoplo who actually contributed it; and becauso restitution oould- not be- made to tho remainder it would lie inequitable that 60.0r 70 per cent, of tho people should suffer as a result. The rural districts had contributed S2_ per cent, of tho_?_nking fund, whilst the sewage area had only contributed 47$ per cent. Whereas the bulk of tho money had been expended within the sewage area tho rural district should only havo contributed 7J per cent, of the sinking fund. The rural areas did not contend that the Drainago Board had acted illegally. As far as they had been able to ascertain tho Board had oompljed.... with tho provisions in the Acta to the lettor. Tho Board had. again '-and again recognised tho inequities-that had been meted out to the rural districts; but owing to the opposition on the part of the city to any increased rating powers within tho city area, tho Bona- recognised that it was absolutely powerless in the matter. It might be said that tho payment of £00,000 by the City Council would di* locate their finances. He contended that .would not be so. The Commissioner said a question was whether any part of the expendi-tur-a within tho sewage area baa been af benefit outside such area. If so, that would be a set off. Air Wright 6aid he would deal with that point later. The capital value of the City of Christchurch was £7,000,000; and the capital value of tho area on which tho loan would' bo charged would be £6,500,000. But as values were increasing, it was thought reasonable to estimnto tho capital value on which _. drainago rato would bo levied at seven million, and on that value a very small rate would provide for interest and repayment of the necessary loan. Tho rural areas were not making a special point of the interest. The rural areas required certain amendments to bo made in the present Drainage Acts. There were some 12 or 13 statutes dealing directly. with tho Drainage Board. Tlie rural areas required those Acts to be consolidated into one measure. It was not enough that there should be a refumd to the rural areas. In addition to that, the rural areas required guarantees that a similar condition of things to that which had occurred in tho past should not recur. They also diwired that thero should bo a-different method of electing members of tho 'Drainage Board. It wao oontended that thero should bo a clause in the new Drainago Juil similar to that ia the Public Works Act, by which ono local authority could compel smother local authority to contribute towards tho cost of a publio work in respect of which it obtained a benefit. Tho accounts of the Board since Air Cuthbert had been treasurer had been kept according to the Act, ami they had be_i kept in a very able manner. But the books only showed tho receipts and expenditure of tho Board. Thore should be accounts kept in. respect of each rating district. Tho Board should send to each district a list ot the works it proposed to carry out in such district; tho rato proposed to be lovied, and how it was proposed to expend the money. Tho. Commissioner: What is tho use of sending such particulars unless they have the power of objection? Air Wright said that a right of appeal might be given. Tho rural areas, or the local bodies within them, were in favour of a change in tho election of members of tbe Drainage Board. The local, bodies should sond representatives. That would enable them to keep in closer touch with the work ci the Board. It was unfair to chargo the cost of cleaning the Avon and other streams to rural areas. A right of appeal should be allowed. John Richardson, Alayor of Woolston, was then called. He 6aid ho had for many yeais past taken a keen interest in respect to drainage matterIn 1883 the Wools-ton Town Boaid had a difference with the Drainage Beard in respect to tho o_ce__ive rate levied. The Woolston Town Board managed to get that rate quashed. Ever since then Woolston had objected to the rating for drainage. In tho Wcolston Town Boa id time, a rate ol thiee ian.iiings in the £ was levied for drainage purpc-jos, for which they received no benefit.. In 1884 the Woolston Town Board intimated that they were prepared to 'do all the drainage works in tlie borough free of cost to the Drainago B*ai_. That offer was evidently

not acceptable to the Drainage Board. Although the books of the Drainage Boaitl were opem for inspection, it was impossible for local bodies, ox at any rate Woolston, to obtain the information they desired. Tliat waa owing to the manner in which the book* were keni. He thought the Draina.o Board-should furnish the local bodii.wneorncd with a soliedulo of the works proposed to lx> carried out by the Boaid. Tliere w.i s no method ef ascertaining how the rater, levied nn Woolston were expended. It would te an advantage to th? local nitthorit;" if th:* method ef Hi? election of members were changed, so as to enable the local holy to Iks more in touch with the work of the Board. Tho local board ehr-nld elect its own represcTitntivo. Wor»l_toii bad been practically disfranchised for many years under the present system of appointing members. _ Tlie cost of cleaning the Avon should be nllocatcd not aecoiding to the ehninnge system, as at present, but phould l>e according to the ben.v fits received from tlie various loc.il bodies;. The city derived the yrentest benefit fiom tho expenditure in kee.j-ing the Avon clear. The allocation should be dono by <in impartial body, but there should be a ri~ht of appeal, lie thought the provision in tho Public Works Act. compelling adjoining lociil Ivodios to contribute to n work 1 _-nefiting th--"' «■.", r> *•».- <>"->. rbevld applied in respect to the local bodies concerned i.i t... o-.qi.i.y. lie was ol" opinion that the amount risked for by tbo rural area.?, was fair, and it sl*ould bo expended nn drainage and fownge' works. Thr. now Bill shoiil.l lie a public Bill, taken charge cf by tlie Government. A local Bill would bo op posed po*«ib!y ns it had been in tho past by the city nnd its membe.s, and that would imperil tho passing of a local Bill. He thought the Drainage Beard' should be comprised of six memhers from the city—namely, the Alnvor. the chairman of the, Works nnd tineother committees, nnd two other mem- ! hers of the Council. Tho other men i-l.-ors of tbe Board should bo tho Alayors ,of tho borough' 3, nnd tlie chairmen of road board':, ■within the drainage area That would moan increasing the number of member, of tho Board by ono/ In regard to drainage works, ho thought the local authorities should have the power to mako contracts with tlie Drainage Board, to do works in their own districts only- subject to the same supervision thnt an ordinary contractor would bo subject to. To Al«' Bus-ell: Tlie Board should b~ : constituted of members of tho local j bodies. Ho did not think that -would at once bring one district into conflict I with anotluvr. He did not think ranm- ! bors would simply go to the Board for the single purposo of benefiting their own districts only—at least, not to tho extent Afr Russell seemed to think. As far ns Woolston was concerned, it was (satisfied with its present member. There had been an improvement of lato in tho personnel of tho Boa id in the matter of representation. He was not awaro that ever since 1900 tho Board' had been endeavouring to get legislation passed to enable them to do justice to tho rural area—to refund the amount overpaid by the rural areas. .'■-,. To Air Wilding: A few drains from Woolston found .their way into the Heathcote r«ve_r. To Air Joynt: He oould not give any reason why there should have been such an unequal distribution of the £200,000 borrowed by tho Drainago lloard, unless it wtts because the works : in tho sewage area wero considered to bo more required. To Mr Harper: He thought that any », questions of contribution for river cleaning should be referred from time to time to the Commissioner, provided that an appeal from tho Board w_. necessary. . George Alclntyre, licensed surveyor, said ho was a member of the Drainage Board for. fifteen years, from the b6ginning of 1891 to the end of 1905. He took office just after the Board w_b ordered by the Supremo Court* . in . the matter of Hopkins t. the Board, to set aside annually a sinking fund for' the payment of the loan of £200,000. The full j-ato that could be collected from the ce-wago area for that yoarwaa about £13 000. This total requircmo'nti of that area were about £16.000, and the balance had to bo raised by rating the rural area. The method pf making up a deficiency in the sewage area was always to rate tho rural area. Tlie .other membersi recognised that injustice was being.done to the rural area, but their efforts to raise a further loan, to protect the rural area, were always unsuccessful. Before he left the Board, ho and several other members were in favour of a refund be*. ing made to the rural area. So far as ho knew, no portion of the original moneys were expended in New Brighton before it, was constituted a separate drainage district. Assuming his figures wore correct, New Brighton was entitled to the refund of an overpayment of £1180. Jtfevr Brighton was m need of certain drainago works. ! To Mr Russell: He did not think that if ■nominees of local bodies were appointed to tho Drainage Board; the Board-would be improved in its personnel. It was agreed from the first thnt the Board should bo an independent body. William Wilcox Tanner, M.H.R;, said he had boon resident in the Heathcote district for somo 30 years, gfld now resided in rural Christchurch. Ho had taken a particular interest in drainage board matters for nearly 30 years past. Ho had seen thp annual printed bal-ance-sheets of the Drainago Boards. From thoso balance-sheets it .was impossible to toll how tho money was expended that was raised by rates from, the Woolston district. He remembered i the decision of the Supreme Court in Hopkins's case, in which tho Drainage Board was compelled to provide a sinking fund sufficient to liquidate the loan by 1926. Ho consulted a number of .Members of Parliament in regard to this question. He had never received any sympathy, approval, or assistance from nny Alember of the City 6f Christchnrch who represented an electorate which took in any pari of tho sewage j area, which of course was benefiting by payments from the outside area. Ho remembered a deputation waiting on Air Seddon. Every effort was made to get the Government interested in the. matter with tho view of having legislation passed, but without success. He and others wero aware that the outer area was contributing more than it ought to contribute, but they did not know how much. No money was being expended in tie outer nren. If they Could get a suitable adjustment proportionate to the benefits that the various portions of the district derived from the scheme, he would be in favour of fiassing a sponge over the past absoutoly, but ns n public man who hud represented thousands of people who had been paying far moro than they ought to have paid, ho thought restitution ought to be made. He was rather inclined to think that ultimate restitution had been within tho view of the Drainage Board all the time, i He thought that the amount to bo paid back to tho outer area should be heme by the eewngo area —the nndu-i benefits to which had been the cause of the whole trouble j To Mr Joynt: He was in favour ol \ tho nppo'titment of some authority appointed by tho Government, to whom > t. ich disputes could be referred. ! To Air Harper: Ho was in favour of the Drainage Board being elected as it was ot prc*v.nl. To Mr Wilding: In the event _r restitution, the new property owners -in the outer area where the money so rostor-vi was expended would get"the benefit of the expenditure. To Air Stringer: But of course that should not prevent restitution to the extent of £32,000 being made. George Soott, chairman of the Heathcote Road Board, said that ho had taken an interest in Drainage Board matters for about twelve years. Tho

Heathcote Road District to- know how the money _•_£ wJSIHH Ponded, but they had do fo. He favoured a simplS- SJSfIB oi keeping accounts on the Drainage Board. He was of o.h_3l_ that, M» matter of equity, tion of the over-paynierita •nndo by ho Drainage Board. TfiS Drainage- Board ought to sunnlv'ttSO bodioi in the rural area with wfiJSM ef proposed works nnd expendiM! He favoured the Dnuni.Ro uSM elected in a different manner, fi&fl Hoard should bo composed of the Ma___l of.the City and five members olf Slj City Council (sny tho chairmen of t___! various committees), and the MuSIEI of boroughs and chairmen of r___i Ijoanis wii.in tin- niral area. Ow{__fl to there being no high-pressure w&£_El s»PPj.v. there were mnnv houses whSU could not derive nnv benefit from tkM sewerage system. H 0 thouglit the tim Til had now arrived when there should -all a readjustment and an extension of thaH drnmnge area. \^m The C '? ,nmissicm tl,ori adjourned t'fltii 10 oclock this morning. \,TjK