CITY WORKS LOAN

New Zealand Herald, Volume LXX, Issue 21577, 23 August 1933, Page 10

CITY WORKS LOAN

RAISING OF £116,000 VALUE OF THE PROPOSALS ADDRESS TO RATEPAYERS EXPLANATION BY MAYOR The works contemplated under the City Council's loan proposals, involving £116,000, to bo submitted to the ratepayers at a poll on August 30, were explained to a meeting of ratepayers at the Leys Institute last evening. The principal speaker was the Mayor, Mr. G. W. Hutchison. The Mayor traced the efforts of the council to return to a programme of constructive, useful undertakings, and explained the attitude of the Local Goveminent Loans Board toward the loan of £163,996 which it had been desired to raise without .taking a poll of the ratepayers. He said he would not have asked the board to sanction this loan had he not been confident that it was approved by the ratepayers. However, the Loans Board had approved of a loan of £116,000, subject to the proposals being endorsed by the ratepayers. Explaining the proposals, Mr. Hutchison said £79,000 of the total represented works to be carried out by the water department, and included the reconditioning of the- Waitakere pipeline and the building of the Mount Hobson reservoir. The sum of £3o,dJU was for stormwater drainage in the city and a number of small improvement works, the remaining £ lllO representing the cost of raising the loan.

Possible . Exchange Relief The interest and sinking fund on the £79,000 for waterworks, amounting to £4670, would not be a charge on the rates, while the charges on the remaminc £36,500, amounting to_ would represent only one-fifth of a penny on the rates However, it would be necessary to strike a rate of f fifths of a penny as security for th whole loan, but it would not bo col Igcl/GU* * At present th© council was paying £36 600 a year in additional exchange, as the result of the raising of the exchange rate, so that if the exchange rate were reduced in the near future, the council would be able to carry the annual cost of this loan with ease. It the exchange is not taken off before the 1935 election, I do not need to be a prophet or the son of a prophet to say that it will come off soon after the 1935 election," added the Mayor, amidst applause. "So that I can say that after the 1935 election we will get rid of a large amount of our charg©s and will have no difficulty in carrying this loan."

Oost o! the Money Mr. Hutchison riaid he had assurances that the money was available at 4J • per cent, plufi If per cent sinking fund, which would repay the loan in 30 vears. An advantage was that the money need only be drawn as required over a period of 18 months and the charges would accrue only as the money was used. The ratepayers should support the loan proposals on several grounds. The council would be able to depart from the present unemployment policy, as the 250 men who would be employed on the undertakings would have their wages subsidised so that they would be enabled to live reasonably well, pay their way and hold out some hope for their families. Incidentally, they would be able to pay their rates.

The Mayor pointed out that this was the only loan proposal submitted by him during his term of office and under it they would bet creating assets at a saving of over £30,000, compared with the cost of the work if done in normal times. The works had been endorsed by the previous and (the present City Councils, the Loans Board and the Auckland Chamber of Commerce. Moreover, they would be taking advantage of the prevailing low interest rates.

City Flooding Problem Support for the proposals was given by Mr. H. P. Burton, chairman of the Works Committee of the City Council. He said the storm-water scheme would remove the flooding of the lower part of the city, which menaced business premises in times of heavy rains, and when the scheme was completed the problem which had' worried the council for many years would be disposed of. Mr. G. Grey Campbell, chairman of the Public Services Committee, said' the city's health and welfare were safeguarded by having two pipelines from the reservoirs in the hills, but it was now necessary to recondition one of those lines. They could now get that work done at no cost to the ratepayers, but if left for ten years the outlay would be double. The work would mean permanent employment spread over 2J years and the money spent would circulate through the business channels. " Step Back To Prosperity" Mr. T. Blood worth also urged the ratepayers to support the loan, mainly on the grounds that by embarking on this work they would be helping Auckland to take the first step back to* prosperity. By employing a large number of men at standard rates they would be assisting the business community, through whose hands the money would pass. A motion proposed by Mr. E. E. Kitchener endorsing the loan proposals and recommending them for support at the poll was carried with only ono dissentient.

A further resolution was proposed by Mr. G. L. Taylor, as follows:—"That this public meeting of ratepayers urgesi the Auckland City Council to approach the Government with an urgent request to remove the last increase in exchange of 15 per cent, as this impost has nullified not only the statutory interest reduction, but a considerable portion oJr the economies effected by the City Council as well, thus causing considerable hardship to city ratepayers." This was unanimously carried, the Mayor remarking that it would bo helpful to the council and would possibly give a lead to other local bodies to start an apitation in view of the assembly of Parliament next month. •