£100,000 LOAN

New Zealand Herald, Volume LXXIV, Issue 22859, 14 October 1937, Page 16

£IOO,OOO LOAN

FRANKLIN PROPOSAL IMPROVING COUNTY ROADS TOTAL COST OF £335,632 [FROM ( Jit OWN CORRESPONDENT] rUKEKOIIE, Wednesday Tlio Franklin County Council's £IOO,OOO loan proposal, on which the ratepayers arc to vote on October 27, has now been explained in detail at meetings of ratepayers at Huntia, Awliitu, Waipipi and Puni. At the close of each meeting, a resolution expressing support of the proposal has been carried.

At the Puni meeting to-day, the county chairman, Mr. J. N. Massey, said the loan was to make possible the carrying out of road improvements estimated to cost £335,632. Subsidies from tlio Main Highways Board and the Public Works Department were to provide £235,002, leaving tlio council to provide £100,540. Minister's Approval

Mr. Massey read a letter from the Minister of Public Works, the Hon. It. Seniple, stating that tlio works listed seemed to constitute a reasonable ten years' programme, having regard to tho "funds that could be made available annually by tho Government to assist. "I wish to endorse the progressive policy adopted by tho council for tho betterment of access conditions where present roads do not meet all reasonable needs," added tho Minister. The proposals provided for a network of tar-sealecl main roads throughout the county and tho metalling of 50 miles 76 chains of clay road, said Mr. Massey. Tho work was to include deviating where necessary to obtain modern grades and alignments and the replacement of 85 old bridges with concrete bridges or concrete culverts. The annual charges on the loan would be £7OOO, representing interest at 3i per cent and a sinking fund of 3} per cent, to repay the loan in 20 years. A special rate of 7-20 d would require to bo struck as security for the loan, but the council did not propose to collect, as tho £7OOO could bo found from the general rate. Saving in Maintenance

Without tho loan, the council was faced with a considerable increase in rates, as the increasing density of traffic on the main roads was making it moro and more costly to maintain a reasonable metal surface on tliom. Tarsealing would mean a considerable saving in maintenance. In addition, new metalling work, which had in recent years been financed out of ordinary rate revenue, would bo financed out of the loan. In 1935-36 £12,025 was spent out of rates in new metalling, and in 1936-37, £7-153. As there were still 150 miles of clay road in ths county,. the council would probably continue still spending some money out of general rates for new metalling, and thus the loan might involve a slight increase in tho general rate.