BOROUGH LOAN.

Manawatu Standard, Volume LIX, Issue 161, 9 June 1939, Page 4

BOROUGH LOAN.

‘ A £6OOO PROPOSAL. ' Consequent upon advice from the : Labour Department that the witli- ' drawn! of subsidised labour would take - effect from Juno 3 the fiaaneo and works committees were obliged to rcp ccmsiiler the council’s £OOOO streets - and footpaths loan proposal, and the p borough engineer submitted to the | Borough Council, last evening, a f further tentative schedule ombraef ing 277 chains of streets and 70 chains of footpaths providing for a net cost lof £6OOO without provision for sub- - sidised labour. It was also reported that provision , should he made for interest at 'lf per cent., which would increase the t total charges to £643 as against £ool' - had the loan been put through at a ? lower rate. The raising of the amount at 4.1 per cent, would necessitate a special rate of 7-JGtlis of a penny in the £. The necessity for increasing i the rate of interest payable arose as t a result of the Government offering i stock at that figure. The finance and works committees , passed the following resolution: That _ application he made to the Loans Board for sanction to pay an increased , rate of 4J per cent, interest, and that immediate steps ho taken to arrange ■ for the requisite poll of ratepayers folia loan of £60(10, the works committee in the meantime to prepare a schedule • of streets and footpaths for inclusion in the proposal. It will he remembered that the council decided some time ago to defer in the meantime its original intention to seek the ratepayers’ approval to the raising of the amount, because of the . uncertainty regarding the availability of fully subsidised labour, it being pointed out at the time that the possible withdrawal of such labour would necessitate the council reconsidering its proposed tar-scaling of streets and footpaths proposals. The original scheme provided for an expenditure of £12,000, of which amount subsidised labour would account for a considerable sum. When the council arrived at its decision Cr Guv protested and urged that the negotiations ho proceeded with, and he moved an amendment in that direction, blit it was do- { feated. j Last evening the Mayor, in introducing the subject, said he was fully convinced that the council had acted wisely in not being in a hurry to submit the loan proposals to the ratepayers, although its action in showing commoiisense and foresight had boon criticised. The letter from the Labour Department had confirmed the council's earlier views that the subsidised labour would not be available, but it was a pity the information had not been released earlier. The proposed loan would he for a term of .12 years, concluded the Mayor, Cr Guy said his idea of raising the loan at 3,j per cent, was right, hut (he Mayor had through delay lost | the opportunity. lie reminded the Mayor that the latter had told the ratepayers he would go on with a roadsealing loan. Cr Guv did not blame the i Government for withdraw ing, seeing [that borough councils, including Peilding, wore using the scheme for general maintenance purposes. The Tedding borough had subsidised labour to the tunc of £3OOO. I The Mayor replied that there had I been no delay in taking the preliminary steps towards raising the loan and he challenged anyone to prove otherwise. Any delay was not of his making. On taking office he had prepared proposals and had made inquiries regarding subsidised labour. Ho could not- go to the ratepayers until i ho was satisfied that the subsidy would | lie available. Admittedly the council would have to pay £.50 more per annum, but that was not the council’s

fault. The Government bad raised the rate of interest. The council now knew where it stood, the uncertainty having been lifted by the department’s letter. He felt the council had done the right thing. Cr Andrews considered the .Mayor had acted in the best interests of the ratepayers. Cr Smith did not think it was wise for the council to go. on the market with a loan proposal just now, and it would lie showing good judgment if it allowed the £(i()()0 loan to go by the board for at least a year. Cr McCorkinduie thought the money could be raised. The council would 'get the mqney at a lower rate than ever it had done before for tar-sealing work, even at per cent. Cr Buist said the ratepayers would have to decide the issue and if the loan proposals were turned down at the poll the council would at least have I lie satisfaction of having done its duty. The Mayor agreed with the. remarks of Cr Buist. The motion was carried without further discussion.