Rising Costs

Mt Benger Mail, 27 October 1937, Page 3

Rising Costs

WAITAKI COUNCIL FACES PROBLEM TENDERS FOR BRIDGE REJECTED The extent to which building costs had increased during the last three years was exemplified at the meeting of the Waitaki County Council on Friday, when the engineer (Mr G. L. Cuthbertson) reported that in some cases costs, particularly in connection with building bridges, had increased to as much as 250 per cent.

* ‘ The enormous increase in costs is unprecedented in the history of this council,” said Mr Cuthbertson, when referring to the tenders received for the proposed bridges over the Waiareka Stream beyond Enfield and over the Otekaike River on Reef Gully road. “My figures for the work, even after making what I thought to be substantial allowances for the increased cost of materials, is short by several hundred pounds.” He gave a comparison of costs to-day with those of three years ago to prove his assertion. Concreting had cost £3 7s a yard and now was £6; reinforcement iron had increased from £23 4s to £35; piles which formerly cost £9 were now £22; and the driving of piles had risen from 9s per foot to 15s. These were only a few items in illustration of the general rise in costs.

In the case of the proposed bridges the lowest tenders exceeded the estimates by such an extent that, if they were proceeded with the extra cost to the council would be £soo—this provided the Government made an increased subsidy.

“Costs are going up by leaps and bounds, and if we are prepared to face the music with a deficit at the end of the year, well and good, but I think it a bad policy for the council to adopt,” said Mr J. Rodman (chairman). He stated that the council would be faced with a deficit at the end of the year of £SOO, the sum he considered to be much too high; it meant an increased rate.

It was decided unanimously to accept none of the tenders for the Reef Gully bridge, and to apply to the Government for an extra subsidy for the Waiareka bridge. This would give the council a deficit of £250. One councillor ventured the remark: “Where will we get it?” The Chairman’s only answer was: “We shall live in hopes.”