NORTHCOTE IMPROVEMENTS.

New Zealand Herald, Volume XLV, Issue 13925, 5 December 1908, Page 6

NORTHCOTE IMPROVEMENTS.

THE £6000 LOAN PROPOSAL.

MEETING OF RATEPAYERS. A meeting of the ratepayers of the borough of Northcote was held last night in the Northcote Hall, when there was a large attendance. Mr, H. H. Hunt, a member of the Council, presided, the borough being at present without a Mayor, owing to the resignation of Mr. Alex. Bruce. The chairman was supported by Messrs. Geo. Eraser, D. A. Gray, J. B. Tonar, W. N. Rushbrook, P. W. Holland, J. Broady, and A. E. Greenslade (members of the Borough Council), C. A. Cawkwell (town clerk), and M. R. Creagh (borough engineer).

The Chairman briefly explained that it was proposed to borrow £6000 for street and road improvements, and the meeting had been called to consider the matter.

Mr. M. 11. Creagh, the borough engineer, explained the works proposed to be undertaken in the event of the poll for sanctioning the loan proving successful. He pointed out that the object of the ratepayers assembling there that night was undoubtedly one of very great importance to the progress of the district. They had a locality that should be second to none as one of the most popular marine suburbs of Auckland. He did not think that anyone there could honestly say that they considered that the roads, as a whole, of the borough of Northcote were in anything like a satisfactory condition. The question resolved itself into " what was the minimum of work that could be done so as to be of a permanent character?" He proceeded to detail the work that the Council proposed to do. It was unfortunate, he added, that the law prevented the Government from lending more than £4000, and so compelled them to obtain the other £2000 from another source, but, beyond making the bal-lot-paper somewhat confusing, this would not cause any difficulty in obtaining tho loan of £6000. (Applause.)

Mr. C. A. Cawkwell, town dork, explained the financial proposals at length. He briefly referred to the matters that had led up to and induced the Council to embark upon the floating of a loan. Owing to the stringency of the money market, it was found impossible to borrow only at high rates of interest, which would bring the annual charges on the loan to so high a sum as to embarrass the working of the Council. However, a way was sought out of the difficulty, and the Government was appoached, with the result that the provisional approval of the Mini* ter for Finance had been obtained to a loan of £4000 for 41 years, at 34 per cent, per annum. If they* refused the Government loan at 34 per cent., he did not, think they would again have the chance of securing money so cheaply from this source, as it was not the custom of the Government to lend to a municipality so near a city when the back blocks were clamouring for loans which were really necessary. It was not the intention of the Council to increase the rates now levied in order to finance these loan proposals. The Chairman said th© Council had come forward with a straight-out scheme for the improvement of the district, without increased cost to the ratepayers in the matter of rates, _Mr. Geo. Fraser moved: "That the Xorthcote Borough Council be requested to take a poll of ratepayers on the proposals to raise a loan of £600-3 for the formation, grading, and metalling oi the roads generally within the limits of tho Borough of Xorthcote. and in terms of the proposals submitted to this meeting of ratepayers. Mr. W. X. . Bttehbrook seconded. Mr. Alex. Bruce. ex-Mayor, ridiculed the idea that the interest and sinking fund on £6000 could he paid out of ordinary rates without- necessitating an increase in rates. He quoted a recent report of the town clerk, in which it was clearly stated that a loan of £5000 would emphatically mean an increase of rates, though it was true that was assessed upon the basis of six per cent, (five per cent, for interest and one per cent, for sinking fund). He also showed that before ho loft the chair, a year's estimate of the least amount the borough could carry on with was fully £1000, including the £360 for the then suggested loan, and the only alteration now was that they had to take off the difference in interest between that rate and tho somewliat lower rate now proposed. He, however, realised that the district must borrow if it was to do any good, as they could not do any better* than was being done with their general rate revenue of £600. but it would be, better to borrow moro moderately than was proposed, if they wished to keep their rates at tho present figure. An amendment, moved by Mr. A. Waterworth, and seconded by* Mr. Maxwell. to adjourn the meeting for a fortnight, to enable the matter to lie more properly digested, and that the Council, in the meantime, have printed copies of (he reports of the engineer and town clerk, with the amounts of the allocations set opposite each street, sent to the ratepayer*, was withdrawn, on the undertaking by the chairman, after consultation with members of the Council, that copies of the reports would be in the hands of the ratepayers within one week.

The motion sanctioning the faking of a poll on the 19th inst., was then carried unanimously.