A SORRY BARGAIN.

Gisborne Times, Volume XXXVI, Issue 3994, 26 July 1913, Page 5

A SORRY BARGAIN.

BOROUGH METAL CONTRACT WITH THE COUNTY. A LOSS OP £7BB IN SIXTEEN MONTHS. —-J-" 'l| fcf \ MAYOR PLA’OES THE POSiTION BEFORE THE COUNTY;

A deputation from the Borougfi Council, consisting of the Mayor (Mr J. R. Kirk), Cr. Hepburn, and the Town Clerk (Mr It. D. B. Robinson), waited upon thQ Cook County Council yesterday. The Mayor said the only subject he wished to bring before the Council was the metal supply, which the County was obtaining from the Borough. He did not come there to make any supplication, but simply to place the position before them. Some time back an agreement was made for the Borough to supply metal to the County at a certain figure. Since then the borough had been selling metal to the county at a loss, and if the County took the stand that they had a contract with the borough that ended the matter. The intention was originally that the metal should be supplied at cost price, but subsequent events had proved that the rate charged to the County had been a long way less than the cost of producing the’metal. The Borough fully realised their liability. He had looked into the contract, and knew that the County had a perfectly legal agreement. To show the actual position he placed the following figures before them:

Metal supply account, quarry line. To labor and material, £10,487 11s 4d.

Depreciations (5 per cent, on £22,500) £1125. Interest, £22,500 at 44 per cent.), £lll2 10s. Total £12,725 Is 4d. Bv the sale of metal, gravel, etc.,. £9487 18s lOd. Sale of motors. £55. Balance, £3182 2s 6d. Total, £12.725 Is 4d. Cost of Metal. — Town. —Quarrying 4s, haulage 4s Od, interest and depreciation 2s 3d—10s 9d. Niven’s —4s, 2s 3d, 2s 3d—8s Gd. Matawhero: 4s, 3s, 2s 3d—--9s 3d. Price charged County Council for year 1912-13: Town 7s Gd (with loading charge of 6d); Niven’s 6s Gd, Matawhero 7s. Statement of metal supplied to the Cook County Council from October, 1911. to July 5, 1913. Quantities delivered. — . March 31, 1912.—Niven’s 4944 yds., Matawhero 32, Borough 1275. amountpaid by County Council' £658 12s, cost t 6 borough £909 17s. loss £251 ss. March 31. 1913. —Quantities delivered: Quarry 1934 yds.. Niven’s 12224 Matawhero _ borough 1327. amount paid by County Council £1222 15s 9d, cost to Borough £1632 12s Id. loss £409 16s 4d. July 5, 1913. —Quantities delivered: Niven’s 165 yds, Matawhero 300. Boroush 561 amount paid by County Council £3B3' 0s 6d, cost to Borough £5lO 8s .3d, loss £127 7s 9d. Totals—Quantities delivered : Quarry 1934yds. Niven’s 1882, Matawhero Borough 3273. amount paid by County Council £2264 8s 3d. cost to Borough £3052 17s 4d, loss £7BB 9s Id. The Mayor said they were drawing this metal over rails, and were thus saving the County roads. He did not suggest that anything should be allowed in respect of the loss, but thought that the Council should review the position, and consider whether they could not do what . they might consider just and proper in the matter.

The Chairman said that the Councillors had the wish to meet the Borough fairly. They were aware that they had got a good bargain: but had no idea that the position was as bad as it was. He did not think, the County wished to stand on its rights, but- wanted to g’ne a fair deal. The Chairman asked if the Mayoi had any figures to show how Mr Paterson had arrived at his scale of charges. The Mayor said he had not, but one factor which had increased, the ccstwas a rise in the price of oil.

The Chairman: You have not come to us with any definite proposal? The Mayor: No: I have gone intj the agreement, which I have fmi id to be a perfectly legal one. \. e cun simply leave the matter in the 1 ar.ds of the Council.

Cr. Williams asked if the fact of the County ceasing to take metal from the borough would increase the cost in town. The Mavor replied that it would not prejudice the Borough ii the Countv ceased taking metal, as the Borough would most probably turn out the same amount and use the whole of the metal themselves. The Chairman said the Council would give consideration to 'lie representations made, and would acquaint the Borough Council of its decision. His Worship thanked the Council for its attentive hearing, and for the hope they had held out that good might result from the conference. He stated that- it would be at all times his aim as Mayor to work in with the County in all matters affecting the good of the ratepayers of Poverty Bay. . . , , Cr. Jox-Blake said the position had been placed fairly before them, and it was onlv right that the Borough should have a square deal. The Mavor then thanked the Council for its'attentive hearing, and the deputation withdrew. At a later stage, on the motion or the Chairman, it was decided to go into the contract with the Borough at the next meeting of the Council.