TRAMWAY LOANS.

Press, Volume LXVI, Issue 19974, 8 July 1930, Page 10

TRAMWAY LOANS.

SPECIAL ORDERS PASSED. CHAIRMAN DEPENDS SYSTEM. Two special orders authorising the raising, without a pojl, of £BOOO and £IO,OOO, were passed by the Christchurch Tramway Board yesterday afternoon. The £IO,OOO loan is for additions to buildings for trolley-buses and additional loops in existing tracks, which will enable a saving of £2700 a year to bo tna.de* The other loan is tho Excess Cost Loan, 1930, for tho purpose of renewing the double track between Carlyle street and Brougham street, Sydenham. In moving tho passing of the order the chairman (Mr W. Hayward) said that in view of the public interest that had been aroused, he would like to make a statement on tho position. The Chamber of Commerce had passed a resolution on Thursday last reaffirming the principle that local loans should not be raised without the consent of ratepayers. There was a good deal to be said in principle for this contention, but on the practical point of view there was a good deal to be said on the other side. "Let me refer first to the checks on the practice which exist," he said. "The local authority must first give public notification that it intends to ask tho sanction of the Local Government Loans Board, and the ratepayers are invited to send in objections. A fortnight is given within which this can be done. This is the first consultation with tho ratepayer which takes place.

Full Consideration. "The Local Government Loans Board is required by Act to give consideration to the following matters: — " (1) The probable obsolescence of the work to be undertaken. "(2) The probable continuance or cessation of the conditions justifying I the loan. "(3) Tho probable increase or decrease of population is the district. "(4) The change of outlook or advance in public opinion. "(B) The general financial position of the local authority. " (6) The expediency of charging the cost upon the generation of persons who will immediately benefit by the work. "(7) The last and most important, the probable duration and continuing utility of the works. "To assist the Local Government. Loans Board in this duty the local authority is required to answer a number of questions, including any written objections lodged or verbal objections made at the meeting of the local authority. The names of its members who voted for and those against, with the tatters' reasons, are recorded. "If the sanction is obtained the Special Order is made and advertised once a week for four weeks, giving the ratepayer the second opportunity of being heard. The Order is then confirmed. "In one case tho Board gives publicity to the proposal by means of posters in tram-cars, in addition to the newspaper advertising. In the case of loane over special rating areas the same pub licity is given, but in addition ratepayers have the right to be heard by a Magistrate if they object to inclusion in tho area. PoH Costs £IOOO. "A loan poll in the Christchurch tramway district costs over £IOOO. Surely it is wise to save this expense in the matter of small loans such as are now before tho Board. "With respect to the particular loans now before the Board, the £BOOO is for part of the cost of replacing the track In Colombo street south with heavier and more endurable materials than were used for the line when it Was first constructed. The original cost of the I line is provided by depreciation funds, | but what is termed the excess cost is | made a charge oh the generation which is using the new work. They are not being required to pay for something which has already been worn out. "The £IO,OOO loan is required for works such as new loons on several lines and for certain trolley-bus requiroments. which together will enable the Board to make savings of over £4OOO a year." The motion was seconded by Mr John Wood and carried.