Loans Board Conditions “Undue Intrusion”

Press, Volume CIV, Issue 30940, 22 December 1965, Page 14

Loans Board Conditions “Undue Intrusion”

Conditions imposed by the Local Authorities’ Loans Board in granting a £lm. loan application drew objections from the Christchurch Drainage Board last evening. They were described as an undue intrusion into the board’s business.

The board had applied for authority to raise £1.75m. In cutting this to £lm, the Loans Board made it conditional on the prior completion of current loan work, and on sewer plans under the new loan receiving the approval of the Minister of Works. Mr D. P. McLellan said there had been some discussion at the finance committee about priorities being taken out of the board’s control. Was this so? “The Loans Board does require priority on completion of existing loan works,” said the chairman (Mr F. R. Price). In effect, then, said Mr McLellan, the ministry could hold up approval of new works until prior loan work had been completed. He understood that that was a new Loans Board condition.

“I would say the Loans Board is mainly concerned with the trade wastes sewer,” said Mr Price. “Now that the Sumner connexion is advancing rapidly, we will be as keen as they to see the trades waste sewer completed. What you suggest could still be correct if it was taken to its full conclusion.”

Did the cutting out of the £750,000 jeopardise the Sumner sewer? asked Mr T. D. Flint. The Sumner sewer was not involved, said Mr Price. The new loan would cover work in priorities six to nine. The board could not spend £1.75m in four or five years. It could apply again for the £750,000. MTC idHWevfl

The secretary (Mr T. A. Tucker) said that the Loans Board could, as it had done in the past, have deleted items. The reduction in the amount of the loan would in no way embarrass the board’s programme for the next three years. To Mr Flint, the engineer

(Mr P. V. Me Will ism) said that priority 7 related to sewers at Sockburn, No. 8 to work at Hornby, and No. 9 to work at Islington. “We should tell the Loans Board that we view with concern its requirement on priorities which is an unnecessary intrusion into the rights of local government,” said Mr McLellan. “Local government must resist the encroachments of the central Government and not accept assurances from civil servants that they won't interfere with our order of works. This is a departure in the Loans Board’s conditions.

“We had another example of this sort of bureaucracy today, when the highest judicial position in the land was held out as a plum for a senior civil ..ervant.” “I don’t think that is analogous to our argument,” said Mr G. A. G. Connal. Mr M. R. Carter said he saw no reason for concern. The board’s future plans were in no way prejudiced and no works would be delayed. Mr Price said it was true that it was the first time the board had been required to submit sewer work plans to the ministry. Storm-water drain plans had formerly to ;be submitted, and the ministry had not altered them, or held them up. “It might be cause for concern that, now, all our plans have to get Ministry approval,” he said. Motion Passed On Mr McLellan’s motion, seconded by Mr Connal, the meeting decided to tell the Loans Board that it was concerned at the requirements on priorities and approval of plans. The board decided to proceed by special order to raise the £lm. The board also decided to apply for authority to raise a £350,000 loan for construction of the Sumner interceptor sewer and associated work, which will connect Sumner with the Bromley treatment works, and eliminate pollution of the sea.