No loan bond for plant

Press, 15 October 1981, Page 6

No loan bond for plant

Lack of loan guarantees for dischargers is delaying neogitations for the $6 million industrial waste treatment plant at Chaneys. The consultant engineer, Mr D. L. Stevens, told the development and construction committee of the Christchurch Drainage Board yesterday that the three plant dischargers had been trying for four months without success to find financial guarantees for the 30-year loan needed to cover their cost contribution. Bids for backing from New Zealand institutions had drawn a blank and the companies were trying overseas. All the other finance has been arranged but the loan bond was the “stumbling block,” he said. Work on the plant has already been delayed six months because loan sanctions require an agreement between the board and dischargers to protect ratepayers from financial commitment.

The board’s deputy chairman, Mr C. H. Russell, said that the public might think the board was “sitting on its chuff” but he was worried that too much pressure on the dischargers to find guarantors would make the companies back out. The committee’s chairman, Mr T. B. Whelan, argued that the companies were willing and had made a big commitment in agreeing to pay annual running costs which could amount to $1 million. Sewerage demands Urban sprawl and the resulting demand for extending sewerage services is worrying board members. Government withdrawal of subsidies for community sewerage schemes next year has led to pressure on the board to extend its district. The committee decided to ask board engineers to report on unsewered residential areas before it considers

requests for sewerage reticulation. The Brooklands Community Centre has sought urgent planning for a sewerage scheme in its district and Paparua County Council also has a list of seven areas, including Taylors Mistake and the Kennedys BushQuaifes Road area, which had septic tank problems or needed reticulation. Board members said that the board would have to impose special rating areas to qualify for any worthwhile subsidy. Schemes for Brooklands and Taylors Mistake would cost an estimated $1 million each and the rate increase for local residents was too high. A Paparua proposal to start its own subsidy scheme for Kennedys Bush and Quaifes Road was also treated with caution. Mr Russell said that the board might eventually be forced to take over a sub-standard scheme and pay for improvement work.