CITY LOAN PROPOSALS

Manawatu Standard, Volume LIII, Issue 313, 2 December 1933, Page 2

CITY LOAN PROPOSALS

FITZHERBERT BRIDGE AND RELIEF WORKS. MAYOR OUTLINES REASONS. The reasons for the proposals to raise £6OOO for the new Fitzherbert bridge and £19,000 for the relief of unemployment, by loan, wore explained by the Mayor (Mr A. E. Mansford) at a public meeting at the Municipal Hall last evening. At the conclusion of his address, and when a number of questions had been asked and answered, a motion approving of the raising of the money for the new bridge was carried unanimously. A motion, disapproving of the raising of the loan for the relief of unemployment, was defeated. There was an attendance of just over 20. “In placing before you the proposal for a loan of £19,000 for unemployment relief works, I am carrying out the suggestion I made when addressing the electors in April last prior to the municipal elections,” said the Mayor. I then, pointed out that the cost of unemployment to the council for that year had been over £7729, and that whilst a considerable amount of useful work had been carried out, I was of the opinion that work of a more valuable nature could be undertaken if a policy of construction work was formulated and a loan secured. I then stated, and I have not changed my mind, that it was a poor policy for this city and the Dominion to expend money on works of little or no value. As a matter of fact, ouite a lot of the work already done is going to mean extra maintenance to the council in years to come. I am convinced that those works that are constructive and useful, that are requirements of the future, are avenues in which our unemployed should be engaged. “During the past three years the council lias expended on unemployment over £20,000. WORK ALREADY DONE. “Other work completed with unemployed labour comprises the formation of Main Street on the east side and North Street while a good deal of excellent work has been done at the new cemetery. The reserve at the Botanical Garden, which is really an extension of the Esplanade, has also been laid out and when completed will, be a distinct adjunct to the Esplaii-' ade and to the city. A lot of useful work has also been done at Bledisloe Park in extending the footpaths and tracks. At Takaro Park quite a lot of improvements have been done and playing areas laid out. Practically the whole of the schools have had their grounds laid out with unemployed labour. Again, there is the new reserve at the corner of Fitzherbert Avenue and Te Awe Awe Street. This was practically all done with unemployed labour and anyone caring, to view this reserve will see the great improvement that has been done. The Domain in Albert Street is being laid out, levelled, and two hockey grounds prepared. Other works carried out were kerbing and channelling and formation of footways, the road at Tiritea, roading of reserves, etc., but most of these useful works have come to an end and in any case formed but a small percentage of the total works done.

“We are now faced with the position that if useful works are to be carried out materials will have to be purchased, and with the reduced revenue the general account cannot stand this added burden. It is therefore proposed to take a loan of £19,000. The interest on this loan has been limited to 4£ per cent, per annum with a sinking fund of £3 7s 6d. The loan is secured by a special rate of 3-16th of a penny in the £. A property therefore of an unimproved value of £250 will pay 3s lid. PROPOSED SCHEDULE. “The schedule of works under the relief of unemployment loan of £19,000 is, as follows: “For stormwater drainage, £6500. — The work comprises a conduit in Foxton Line from West Street to Botanical Road. This is the concreting and covering in of the open drain in Foxton Line. There is the continuation of what is known as the Terrace water course from a point in Dahlia Street, from Princess Street, to Victoria Avenue.

“Rangitikei Street.—A stormwater drain is to be constructed from Featherston Street to King Street. This is to overcome inconvenience that is always caused with a heavy downpour of rain, the area at the bottom end of King Street being always flooded. This drain should be of considerable benefit to this area and no doubt will assist the Square also. “College Street. —Continuation of the piping of the drain from the West End School to Cook Street. For many years there was a large open drain in College Street and at different periods it has been gradually piped and this is really the completion of that work. “Stormwater drain in Albert Street from Manawatu Street to the Manawatu River. —At present with any rain at all this portion is flooded and the water lies around for some time.

“Stormwater drain in Victoria Avenue, Church Street to Main Street. Featherston Street, stormwater 'drain from Pascal Street to Lombard Street. “With reference to road works, the loan proposal is for £7500, and is for the forming, metalling, and sealing 21ft. wide Shamrock Street (Featherston Street to Chelwood Street); and Botanical Road (Main Street to College Street); Ihaka Street, Waldegrave Street, Taonui Street, Ashley Street, Lombard Street, Amesbury Street, Bourke Street, Princess Street, (Church Street to Ferguson Street), Cook Street (Main Street to Cuba Street), Te Awe Awe Street (Victoria Avenue to Ihalca Street); Florence Avenue and Ngata Street, Carroll Street, North Street (from Featherston Street towards Boundary Road, approximately 30 chains). Tire money will all be spent in the city. It is quite possible that the rate may not he collected next year, because if we are really round the corner the general account may. be able to stand the interest and sinking fund, but I do not make that as a promise. I feel confident that the men themselves will have an altered outlook when they realise they are being employed on works of worth while value to the city. “I stated in April last that the past council had seen that what money was spent in its programme of works was spent fairly over all the areas of the city and this council is endeavouring to do the same. The works proposed are fairly well spread over the whole of the city. “With reference to the tree planting portion of the loan nothing definite lias yet been' done. One or two properties have been submitted, but nothing has yet been finalised. Mr Black, .the city curator, visited Christchurch' and Dunedin and made a comprehensive report on what was being done by afforestation schemes in these cities. Tree planting will show a handsome profit. When the trees mature the money from milling, etc., will be spent in the city. THE NEW BRIDGE. “It was considered some years ago that the Fitzherbert bridge was becoming unsafe for heavy traffic and

as a result negotiations were' commenced with the Highways Board for a subsidy on a new bridge. In October, 1929, the board agreed to a subsidy of £2 for £1 towards the cost of a new bridge. An arrangement was then ccme to with the Kairanga County Council that a special bridge committee be set up, comprising representatives from the Kairanga County Council and the Palmerston North City Council, for the carrying out of all matters connected with the construction of the new bridge. The city engineer. employing a special staff, prepared the plans and specifications and these plans were eventually agreed to by the Public Works Department, and in March last a tender of £30,516 was accepted. In addition to the contract there are additional works costing £3335, making the total cost of the bridge £33, 851. The contractors are making good progress with the work and the bridge should be finished up to the contract time, which is 20 months, and should be finished about next October.

“The approximate amount we will require for our share of the cost of the bridge is £6000; the interest is 4s per cent. per annqm with a sinking fund of £3 7s 6d per cent, per annum. This loan will bo secured by a special rate of l-17th of a penny in the £. therefore a property with £250 unimproved value will pay Is 3d per annum. This briefly explains the proposals to be placed before you on Wednesday next. “Let me say in conclusion that there is evidence that we have at last turned the corner and we want to show our confidence in the future and confidence in our city, that we at least in this city possess those essentials so necessary to world recovery, courage and human kindness, then on Wednesday next you will vote for both loans.” QUESTIONS ASKED.

At the conclusion of his address, the Mayor said that if the loan for £19,000 were not carried the council would be faced with the position of having to dispense with the services of 19 of its permanent staff. Mr AV. Milverton asked if it were not a fact that the council would have a deficit of £15,000 at the pnd of the year, due to relief of unemployment. Mr Mansford said that there would be a deficit. He could not state the figure offhand, but they had had a deficit last year, too. Mr Milverton asked if the council thought it was justified in raising the loan at a time when ratepayers in the city could not meet their rates in many cases without difficulty and had hardship in collecting their rents. Mr Mansford said that they would have a better chance of collecting their rents if the loan were carried. Mr 11. S. Abraham asked had not the Unemployment Board made the relief of unemployment a national matter, and had they not said that they were able to meet requirements? Mr Mansford said that the board certainly collected the levy, but they were paying a married man only £1 a week, and that amount would not keep a married couple now. The board was paying only 26s 3d for married men with two or three children. In Palmerston North and other cities relief depots had to be opened. He thought that the unemployed received more in Palmerston North than they did in other places. The unemployed could not exist if they were going to pay rent,, and if they were going to pay the rent they could not buy food. Mr Abraham asked if it was thought that the works were justified at the present time, and could they not be done very much cheaper by contract, at the same time employing men willing to work? Mr Mansford said that the city engineer had stated there was not much between the methods of doing the work by contract and by unemployed labour, but by doing the work with unemployed labour now the council would save £3OOO approximately. That was the reason why he would like to see the work done now. Repeated requests had been made for the work to be done on the roads concerned and they should be tar-sealed owing to the heavy traffic they were carrying. Mr Abraham said that was a luxury at the present time.

Mr Mansford said that some would call it a luxury, but those who lived along the roads would call it a necessity.

In reply to another question as to how the council would fare if the loan for the bridge were not carried, seeing it had been started, Mr Mansford said that there were other means by which the money could be raised. The question was asked if the council proposed to buy a. property for tree planting, and Mr Mansford explained that if the property could be bought at the right figure the council would pursue that course. But if a property could not be bought one would be leased if the terms were reasonable. Mr Abraham moved that the loan in regard to the Fitzherbert bridge be approved. The motion was seconded by Mr Milverton and carried unanimously. OBJECTION TO RELIEF LOAN. Mr Abraham then moved that the loan for the relief of unemployment be not approved. That was a matter for the general Government of the country and not for individual boroughs, he said. It was a dangerous course to follow. If the unemployed were not getting enough, the matter should be taken up with the Unemployment Board. The people of the country now had taxes ranging up to 4s 6d in the £, and they had an unemployment tax of Is in the £. He understood that the Mayor had been instrumental in starting the carnival which had raised something like £2OOO, and he had done good work in the matter of the relief depot. But they had fairly heavy rates and he understood that the superannuation funds were short by £28,000,000. How much of that would have to be made up he did not know. And it would take something like £4.000,000 to fix the exchange question. When were they coming to an end? If individual boroughs took up loans they were inclined in some cases to be extravagant with their expenditure. Money might be spent lavishly when it should be spent with the greatest caution. On the whole, he had not heard of any reason that necessitated th 0 Loan being taken up, except that the married men on relief were not getting enough. He thought that it was the wrong way for any borough to take up an individual loan. Mr J. Hyland seconded the motion, and said that the more assistance that was given from local bodies then the longer unemployment would remain. Districts should not be penalised for loans. They did not know where the loans would end. Mr Mansford said what would the people do while they were waiting for the Government to find the necessary funds? Were thev going to wait and see people turned out of their homes ? Mr Hyland said that the sooner the whole matter was brought to a head then the sooner it would be cleared up. The raising of a loan would just prolong matters. Mr Mansford expressed the opinion that they should assist the people. They could deal with the Government when they faced the people again, although they had given themselves amother year. The city people should not wait until the Government faced an election before they helped their fellow men. (Applause.) Mr Abraham said that as a policy matter the raising of such a loan was wrong. They were going to institute

a dole system which England was now making valiant efforts to overcome. If the loan were carried the position would be intensified in the city. They could go for the Government as strongly as they liked, and he would be with them, hut individual boroughs should n>ot raise loans.

Mr J. Hodgens said he thought tlia.t there liad been wiser_ heads ill the Old Country than those in the Dominion who had tried to find work for tile unemployed and in many cases had put them on unnecessary work. The ratepayers had asked for some time for the proposed works to be put into operation and by doing them now the council would bo saving money. The motion was then put and lost on the voices, and the meeting closed with a vote of thanks to the Mayor.