TAIERI RIVER TRUST.

Otago Daily Times, Issue 21148, 4 October 1930, Page 10

TAIERI RIVER TRUST.

COST OF DRAINAGE SYSTEM. PAYMENT OF TRUST’S SHARE. MR ANSELL’S PROTEST UPHELD. (Special to Daily Times.) WELLINGTON, October 3. The interests of ratepayers under the operation of the Taieri River Trust have been seriously jeopardised by recenv developments. It was reported on September 22 that following repi-csentations made on behalf of the trust by Mr A, E. Ansell (Reform member for Chalmers) Cabinet had decided not to proceed either with legislation amending the constitution of the board or with the enforcing of the payment in a lump sum of £70,000.

On September 22 Mr Ansell received from the Minister of Public Works a letter in which it was stated: “l r resubmitted the proposed Bill to Cabinet and- Cabinet has decided that it is to stand over for this session pending further investigations into the whole matter.” The Treasury officials then pressed for immediate, legislation requiring the Taieri River Trust to pay forthwith the £70,000.

In an interview to-day Mr Ansell stated that he had been officially informed that legislation as suggested by the Treasury was contemplated. He had again protested against the proposal -as being a violation of the Finance Act, 1924 which, in his opinion, definitely gives to the Trust the option of repaying its share of the costs of the drainage system (£70,000) over a term not exceeding 30J years, with interest at the rate of 5 per cent. On Thursday he had a conference with the Acting Prime Minister (Mr E, A. Ransom) i and Mr A. D. Park, secretary to the Treasury, on the matter, and as a result the opinion of the Crown law solicitor was obtained as to whether under the Act the option belonged to the Trust. That the_ Trust was the sole possessor of the option is disputed by the Treasury. As a result of an opinion by the Crown law office, Mr Ansell’s contention as to the interpretation of the Act has been upheld, and the trust is now being communicated with to that effect. It is clear that had it not been for the strenuous opposition raised by Mr Ansell the trust would have had on a difficult financial market, to raise £76,000 immediately. This represents the -saving of many thousands of pounds to residents of the Taieri district.