CITY PUBLIC WORKS

Otago Daily Times, Issue 23058, 8 December 1936, Page 10

CITY PUBLIC WORKS

COUNCIL AGREES TO LOAN GOVERNMENT SUBSIDY EXPECTED Cr Silverstone moved at the meeting of the City Council last night that the necessary preliminary steps be taken to raise a loan of £IOO,OOO for city works under the Public Works Department, subject to the granting of a State subsidy thereon from the Employment Promotion Fund. Cr Silverstone said that in every part of the city people had been asking for certain works to be done. They were asking for footpaths, kerbing and channelling, roading, etc. No one could say that the works were not necessary, and, if they were to be paid for out of ordinary revenue, it would take a long time before anything of moment could be accomplished. It was interesting to know that it was many years now since the council raised any money for public works. Away back in 1915 £105,000 had been raised for public works. That money cost 4£ per cent. In 1922 £45,500 had been raised at 6 per cent., in 1923 £42,000 at 5 per cent., and in 1925 £200,000 at 5J per cent. Since then there had been no loan raised for public works The loans raised in 1922 and 1923 had been repaid. In addition, a loan of £BB,OOO for the construction of Anzac highway had been raised at 5J per cent., and converted to 3J per cent. The highway had cost about £90,000. All the loans had been converted to an average rate of 3i per cent. It would, therefore, be seen that the amount of money that had been borrowed for necessary public works bad been very small. , _ „_„ nnn They had borrowed about £400,000 since 1915, and when new works were done they were paid for out of the ordinary allocations. It was interesting to note the allocations from 1920 to 1936 inclusive for public works—a period of 12 years. During the period the total amount allocated for public works was £618,000. Out of this amount, £168,000 had been spent in what was known as a special schedule, machinery, plant, staff, cost oi running the office, or about £14,000 per year. This left an average of £39,000 per year for maintenance, and what could they do in new public works out of £39,000 per year for a city like Dunedin? Cr Silverstone referred to the delays which ensued in meeting thp requests of ratepayers for work on the streets, and so on, and how they had no option in not being able to carry them out. They must either increase the general rates steeply or borrow money to allow them to carry out the expenditure required over a numoer of years. The amount of the Government subsidy in round figures would be about £30,000. Cr Silverstone said that a schedule of works proposed had been drawn up. They were all new works. The district allocations under the proposed schedule were as follows:—-Anderson's Bay, £24,000; Caversham, £27,000; Mornington, £17,000; Central (north and south), £10,000; Maori Hill, £10,000; Roslyn, £24,000; North-East Valley, £16,000. Every part of the city was included in the scheme, and the result would be improved amenities and the provision of employment for 200 men for 74 weeks.

Continuing, he said the present time was ripe for the borrowing of money, and what it was intended to raise would not seriously affect the finances. He knew objections would be raised, but, unlike previous councils, the present council would put its programme into operation and see it through. Cr Munro seconded the motion, and said he wanted to compliment Cr Silverstone on his loan proposal. There was far more work to be done than could be covered by money available for the purpose. Cr Allen emphasised the condition of the loan that a subsidy was received from the Employment Promotion Fund. The charges of the loan would have to be borne by rates on the existing works allocation and if they paid 3 per cent, there would be costs to meet of about £4500 per year. The cne thing he would have liked to see was a two-years' programme rather than the 18-months' schedule decided upon. Crs Cameron and Begg also spoke in support of the loan proposal.

The Mayor, commending the loan proposal, reminded Cr Allen that a reduction of £9OOO had been effected in Inj council's interest charges, and that this amount would just about provide interest and sinking fund on a loan of £200,000. He was. in fact, surprised at Cr Silverstone's moderation.

Cr Silverstone, in reply, said he only hoped they could get their money as cheaply as Cr Allen had suggested. The recommendation was adopted.