Feilding Loan Proposal of £6000

Manawatu Times, Volume 64, Issue 134, 9 June 1939, Page 3

Feilding Loan Proposal of £6OOO

FOR ROAD SEALING PURPOSES A loan proposal of £6OOO is to be placed before the ratepayers of Feilding, according to a decision made by last evening’s meeting of the Feilding Borough Council. This proposal was tentatively agreed upon some months ago but action was deferred until the council had definite information as to whether the Government would make available subsidised labour under the loan. Discussing the correspondence concerning the loan proposal, the Mayor (Mr. T. L. Seddon) said that the council had now definite information that subsidised labour would not be available. It was a pity that the information had not been available earlier. However, it was not for him to criticise the Department’s action, but he would say that the council had displayed foresight and commonsense which had been lacking, he thought, in those who had criticised the council for delaying action in placing the loan proposal before the ratepayers. Mr. Seddon recalled the decision of the council regarding the enquiry as to whether subsidised labour would be available and said that it had been agreed that loan proposals could not be placed before ratepayers until the council had information on the point.

Cr. P. G. Guy said that his idea of raising the loan when the money was offering at 3J per cent, was right. Ho claimed that the Mayor had given ratepayers to understand that the council would go on with a road sealing loan. As to the matter of subsidised labour Cr. Guy recalled that the council had had the benefit of such labour to the value of about £3OOO and this sum would have gone a long way towards sealing the roads. He was not bemoaning the fact that the Government had taken subsidised labour away from Feilding. On the contrary the Government had acted properly in withdrawing the subsidy in face of what amounted to an abuse of it in that it was used for borough maintenance. The Mayor, in reply to Cr. Guy, stated that his actions in the matter had been consistent with the proposals he had originally laid down. Immediately on taking office he had had proposals prepared and had taken steps to ascertain whether subsidised labour would be available. Until that was known he had been unable to draw up any satisfactory proposals to place before ratepayers. It would have been necessary to have indicated to ratepayers the nature of the works proposed and as these were dependent on the availability of subsidised labour, no definite proposition could be submitted. He had planned to obtain the best possible result from the loan proposal and felt that he had acted in accord with the .serving of the best interests of the town. He confessed that the council would be obliged to find £SO per annum more under the higher rate of interest, but that was a position over which the council had no control. He argued that it was a good thing that subsidised labour had been withdrawn. Cr. W. W. Andrews remarked that the Mayor had acted in the best interests of ratepayers. Cr. V. E. Smith questioned whether in the face of the country’s condition it would be wise to go for a loan just now.

Cr. A. C. McCorkindale held that the council should go ahead and place the proposal before ratepayers. He did not doubt that the money would be forthcoming.

Cr. A. C. Buist was of the opinion that the ratepayers should have the opportunity to decide the issue and if they voted against it, the council would have at least the satisfaction of having done its dutv.

The Mayor said that he was quite in favour of the ratepayers deciding the issue and was satisfied that the council had acted soundly in the steps it had taken to prepare the loan proposals. The council then agreed to resolutions authorising it to obtain sanction to pay an increased rate of 4|; per cent, interest and to take a poll of ratepayers for the raising of a loan of £6OOO for road sealing and footpaths.

In connection with the proposed works to be done under the loan it was agreed to advise the Manawatu County Council of the proposal to seal South Street and to request agreement of that body to pay an allocation of thtf cost. South Street is a boundary road the maintenance of which is shared between the county and the borough.