Sewer Reticulation Programme To Resume

Press, Volume CI, Issue 29753, 21 February 1962, Page 17

Sewer Reticulation Programme To Resume

A partial resumption of its stage II reticulation programme, which was halted last April when loan finance became difficult, was approved by the Christchurch Drainage Board last evening.

The board had heard a report by its secretary-treasurer (Mr T. A. Tucker) and chief engineer, operations (Mr H. F. Page), on finance and contracts; and the comment of Mr R. C. Neville, chairman 'of the construction committee, that the latest loan finance response was not heartening.

The board decided to call tenders for the Bexley reticulation. first stage rising main and pumping station and that specifications should be prepared for the fifth stage of reticulation of Hoon Hay. There would then be four reticulation contracts at the stage where the calling of tenders could be considered. a special committee said Uncertainty about the loan market had been with the board since 1960. when Government measures put a curb on local authority loan raising and expenditure, said the report of Messrs Tucker and Page. The uncertainty was still “very real.” and shown by the difficulty local bodies were having in filling loans. For the last 12 months, the board’s lean programme had been directed towards closing commitments and available funds. It had been successful to the extent that the gap of £610.243 at January 31. 1961. had been reduced to £240.353 at the end of last month.

"As long as future loan support remains uncertain on account of the state of the loan market, a decision to resume letting contracts remains something of a gamble until existing commitments are fully covered.” the officers’ reports continued. "How soon the gamble could be taken, if it is to be taken, is a matter for careful consideration.”

Relevant points, they suggested, W’ere: — That a reduction in monthly loan payments could be expected during the current year as they reached completion. This reduction would be offset by substantial payments on the recent northern sewer contract when operations began. That there would be practically no drain on loan funds for renewal loans during the next 12 months. That the Government’s loan requirements would continue to affect the position. That present conditions precluded the possibility of assistance from underwriters.

and any further assistance on a large scale from the National Provident Fund was unlikely. That the estimated monthly pay-out on current contracts for the next 12 months was £40.000. Public loan subscriptions for the last 12 months had averaged £56.000 a month.

“This would appear to indicate prospects of a buildup of funds, but only if the average loan subscriptions can be maintained." the report said. "However, an analysis of subscriptions and the present trend of the market point to a continuing decline in the present monthly subscriptions.”