THE PAVING LOAN

Evening Post, Volume CXIII, Issue 129, 4 June 1927, Page 10

THE PAVING LOAN

FOR CITY AND SUBURBS

PROBLEM OF EXTRA

FINANCE

LOCAL BODIES OR

MOTORISTS?

Mr. H. D. Bennett, chairman of the City Council Works Committee, referring to the proposal to extend the paving of roads under the control of the City and Suburban Highways Board, made a further statement to-day.

He said that the issues were fairly simple. The sum of £200,000 had been borrowed and spent/and the result was some twenty-six miles of paved roads. Included in that expenditure was £25,----000 for extras and £20,000 for plant. None of this £45,000 went into paving. It required £30,000 of it to clean up the programme under the schedule and a further £28,000 to do some five miles extra, not originally included in the schedule of the Act, and for which no money had been borrowed. The proposal to widen the city to Petone paving by sixteen feet and the paving of a cycle track would add another £30,000, making £88,000. This, with the usual contingencies, made up the £100,000 loan proposal which he had submitted to the board for consideration.'

Mr. Bennett said that he had already pointed out that the present revenue of £ 15,000 from motorists and £ 6000 from local bodies wpuld^ not be sufficient to meet the annual chiarges on loans aggregating £300,000. On present revenue of £21,000, as stated above, the board would be £3000 short of the £24,000 required for interest and sinking fund on £300,000. Allowing for maintenance and other annual costs this shortage could be increased to £5000 or £ 6000. This was what had been placed before the public. He had also suggested alternative, ways of dealing with the position; . '

(a) To borrow less' than £100,000; (b) to anticipate increased revenue; (c) to increase motorists' fees; (d) local bodies to pay more. ' LOCAL BODY CONTRIBUTIONS.

Mr. Bennett, continuing, said that in equity the right ■ thing to do was to ask local bodies to contribute more. When the scheme was first launched the motorists' fee's were estimated-at £7500 (produced £8600). With the local body contribution constant there was no doubt that,to keep the balance even it was up to the local bodies to step up and fill the gap. He was quite ready to admit that. But he also knew that some of- the local bodies were in difficulties; The Hutt County was justified in putting its back to the wall and crying enough. It had teen made clear by Mr. Hoggard that they could not increase their liabilities.

He was, therefore, driven to suggest a 10s rise in the motorists' fees as a simple and ready way out. It should, of course, be remembered that the increase in total fees from that source was accounted for by a greater number paying; and not by any increase in the annual fee itself, which had remained : right, through /at 30s per car per year. ■ The board and the public were in full possession of all the information and that should, enable the board- to make a decision.

Asked if he had any comments to make regarding Mr. Nathan's criticism, Mr. Bennett said that he did not think it was worth while. Mr. Nathan was building up a case on a little slip he (Mr. Bennett) had made when speaking at the board meeting, but which he had.corrected almost in the-same breath when his attention had been called to it by the City Solicitor, i Ho thought it was shabby of Mr. Nathan to make capital out of it. He would stand by the reports as published by the newspapers. ■. ' *