A LOCAL LOAN

Evening Post, Volume CXVIII, Issue 114, 10 November 1934, Page 8

A LOCAL LOAN

Until the Local Bodies Loans Board approves the proposals submitted by the Wellington City Council for a loan of £159,800 the council cannot proceed with the steps necessary in securing, the sanction of ratepayers.'' As the, board' has power to alter the" schedule ,by striking out some of the items, it,. is too early to consider the details.principle of loan expenditure may,' however, be discussed. It i«^ to ,be noted that, with the exception of, the drainage works which are classed as essential, most of the proposals are for street improvements °of"varying degrees of urgency, , Some,, admittedly, should be put in hand soon to remove traffic dangers.1 'Others could wait a "while. As ' touching these works, then, the question ratepayers will have to ask themselves is whether 'the council^ would1'!)*1 warranted in seizing, the 'present opportunity ' with interest'" rates lower than they have been1 for,very many, years or waiting and doing"* i little each year from revenue. There lis a third course, and this yt think will appeal to many ratepayers: to do something from loan, and something from'revenue. F]or the ,most .part the works proposed offer no j direct return,'though some'will give kn indirect return by reducing main-, tenance charges. It would be wiser, { however, not to count too much on this, but to regard the greater part of the schedule as giving a return | mainly in comfort, convenience, and safety without anything much in cash. Looking at the matter in this way the majority of the ratepayers, we believe, will agree to some borrowing but not to quite so much. Of course the list is long because the council has had to find a prize for, each district. But we think it would be better to reduce the total expenditure and trust to the good sense of' citizens to support the loan even! though some districts may derive no' benefit. Even at the lowest interest] rates £159,000 is a big sum to bor-| row for numerous small jobs. Certainly the spending'of this^ money j will create employment and brighten. business; but if the scheme be made, too ambitious it may lead to a minor i boom to be succeeded by a local slump. I