NEW £6000 LOAN

Grey River Argus, 2 August 1940, Page 5

NEW £6000 LOAN

TOWN IMPROVEMENTS Poll to be Taken ? The Greymouth Borough Council at its monthly meeting last evening, decided to seek authority to borrow £6OOO, spread over a period of three years, at the rate Qf £2OOO per year for toyvn improvements, and instructed the Town Clerk to apply to the Local' Government Loans Board for the necessary sanction to borrow the money required. When a clause in the Finance Committee’s report containing this recommendation was before the Council, the Mayor (Mr F. A. Kitchingnam'• stated that on making inquiries it was found that the Council could rot raise the loan without a poll. » T~gether with Crs. J l . B. Kent and A. H. McKane, he (the Mayor) had interviewed the Minister of Housing (Hon. J-I T. Armstrong) and Mr James Q Brien,' M.P., during their recent visit and pointed, out to them that the legislation of 1936 allowing for the taking of loans without a pail lad becofae obsolete. Messrs Armsi rong and O’Brien were both impressed with the necessity of extending the legislation, and promised that tney would do all they could to get it passed. REASONS FOR LOAN. The chairman of the Works Committee (Cr. F. F. Boustridge) said that the proposed loan was in connection with work being done by the unemployed. The term would be for three years or longer if necessary. For many years a large number of unemployed, sometimes up to 80 or 100 were working for the Council, and at present, apart .from sewerage work, there were approximately 50 men employed. They had completed quite a number of valuable works in the town but in order that they might be employed to the best advantage, it was necessary to supply a large amount of material. Cr. Boustridge mentioned various works which had been done in the town, the majority of which required considerable expenditure in pipes, metal and materials The ■ Council was of opinion that these materials should not be paid for out of revenue. “That in ray opinion is a very grave fallacy as our finances have slipped back considerably over a number of years. When v.e had 80 to 100 unemployed the finances slipped by £B2OO over three years. It is suggested that if we place this loan, it not only assist n aterially to balance the budget, but we will, be able to put forward a great deal of beneficial works in the town.” TO COST £6OO A YEAR. “The loan will cost £6OO a year on a 15-year basis,” continued Cr. Boustridge. “That will leave £l4OO to espend in material over the next three years after providing for the ccst of the loan. We have slipped £6OO last year, and it is costing between £lOOO and £l5OO a year lor Materials for the unemployed workers. Their wages of course are found by the Government. The cost of the materials to provide them with work should be provided out of capital and not out of revenue. In th e opinion of the Works and Finance Committees the loan should be placed before the public at the earliest possible moment. , The Works Committee estimates have been reduced by £2009 this year, and the only alternative n ust be to put men on the work vf chipping grass in the streets where no materials have to be provided, or e’se to put them off altogether. I am sure that no member of the Council wants to do that. If the loan . is spread ovqr 15 years, it will mean a saving to the Council in revenue at least £l,OOO a year, and in me year after providing for the first payment of the loan we can live wi’lun ovr means.”

Cr. J. Saunders pointed out. that tlic special rate for the coming year, totalling £13,150, included £7OOO to be applied in reduction of die loan indebtedness of the Borough. On the motion of the Mayor, seconded by Cr. G. R. Harker, the recommendation of th e Finance Committee was adopted.