TRAMWAY LOANS AND GOVERNMENT ADVANCES.

Hawera & Normanby Star, Volume LVII, Issue LVII, 14 May 1910, Page 7

TRAMWAY LOANS AND GOVERNMENT ADVANCES.

A PETONE APPLICATION.

[PBESS ABBOOTATION.I

WELLINGTON, May 13. To-day members of the Petone Hutt Tramway Board (introduced by Mr Wilford, M. P.) interviewed the Prime Minister in reference to tramway proposals. It was explained that the Board intended to place loan proposals before the ratepayers of the combined districts within a few weeks and desired to give the people the assurance that the money could be raised through the Government' at 3i per cent. Mr Wilford emphasised the argument that the Government, which owned much land in the district, should practically b© a partner in the venture. Mr J. W. McEwan (Mayor of Petone) said that some time ago the Government was approached in reference to subsidising local bodies, and it was hoped that something would be done. Practically the whole tramway service would be a feeder to the railways. The service would be particularly advantageous to workmen now occupying Government land, and an extension of the proposed line would benefit the Pitt settlement (State land). The Premier: What do you propose to spend on these tramways? • Mr McEwan : £85,000 for 11} miles of tramway, to be spread over two years. The Board did not wish to be forced into the local , .market or the Londbn market.. The members had reason to believe that they" could get the money in London, but they would save £800 a year by getting the funds from the Government.- Thus there would be £800 less in taxation in the district. ]

Mr Soufhgate said the- population of the tramway district now " was about 15,000, and he was confident that this number would be doubled in two or three years. The Premier replied that he could not accept the railway argument as a legitimate one for the advocacy of a subsidy. The "railway feeder" argument might apply to any tramway system in New Zealand. Also the argument as to enhancing the value of the Government land bad a wide application. The State Guaranteed Ad* vances Department was created to give loans to local bodies for the people's necessities. There had been applications for money for tramways in all parts of New Zealand, totalling £300,000 or £400,000. The first consideration had to, be given to roads, bridges, sanitation and other necessities. Unless the Advances Board took this course it would be running counter, to the intention of Parliament. The Advances Board could not put tramway loans on the same basis as those for recognised necessities. Invercargill had the people's authority for a tramway loan, but it had been refused, as others had been refused.

Mr Wilf ord : • I understand tha,t we cannot get- the money for the present. The Premier:. That* is so. Mr McEwan finally remarked • ' that the Board would 'take a poll and would lodge ari application for a State advance. ','",' " „• :