SUBSIDIES ON LOANS

Poverty Bay Herald, Volume LXIV, Issue 19455, 14 October 1937, Page 4

SUBSIDIES ON LOANS

EACKBLOCK ROADING Q 0 VERNMENT’S POLICY WAIROA £40,000 SCHEME (Special to the Herald.) WAIROA, this day. / The Government’s policy of assisting county councils to complete the metalling of all their roads has not been decided yet, but it is hoped that financial provision will be made on the supplementary estimates. Information to this effect was given to a deputation from the Wairoa County Council which waited on the Minister of Public Works, the Hon. R. Semple, recently with a view to securing a subsidy on a £40,000 scheme the council proposed to commence this year. The acting chairman of the council, Cr. A. T. Carroll, reported at yesterday’s meeting of the council upon th<reception given to the • deputation, which comprised himself, Cr. D. V. Thomas, the county clerk and the county engineer. They met the Minister on September 21. “The deputation,” Mr. Carroll said, “was introduced to the Minister by Mr. £ Cullen, M.P., who pointed out that Ihere was a considerable mileage of roads still unmetalled, some settlers having been on their holdings for 40 years and over and still had to battle dirough the mud. He therefore ap pealed to the Minister to afford the county every assistance by meeting its request for more favourable subsidies than £1 for £1 on the amount it was prepared to borrow.

Minister Asked for £2 for £1 Subsidy “The members of the deputation informed the Minister that the council desired to pass on to the settlers on unmetallcd roads the benefits derived by the taking over of the State highway through the county, the annual saving to the council being approximately £2OOO per annum, ana chat it ,vas proposed to raise a loan for metalling to the extent of £40,000, the estimated charges for interest and sinking fund on which would be £2OOO. "The Minister was asked to provide a subsidy of £2 for £1 on the amount proposed to be borrowed, which would enable the council to complete the metalling of nearly all the existing formed unmetalled backblocks roads. It was also pointed out that some adjoining counties were receiving subsidies for this class of road on a £2 for £1 basis and that the Wairoa County ,vas deserving of similar consideration.

“The Minister in reply informed the deputation that the Government was anxious to assist county councils to enable them to proceed with a programme of work for completing the metalling of backblocks roads. He was pleased to know that the council took die view that the benefits derived by the Government taking over the Statehighway should be passed on to those still unfortunate enough to be served by unmetalled roads. Information Being Secured "The Public Works Department haa been obtaining from the county councils throughout the Dominion complete particulars and estimates of cost of completing the metalling of all roads so that some definite plan could be formulated for undertaking the work and finance arranged for over a number of years. No decision had yet been reached as to the manner in which county councils would be assisted, but it would be either by way of increasing the subsidies from £1 for £1 or by the provision of loan moneys at a cheap rate of interest, this being a matter for the Cabinet to decide. "The Minister also stated that it would not be' possible to make provision for assistance to the council before the Public Works Department’s estimates for the current year were issued, but he hoped that financial provision would be made by the time the supplementary estimates were framed, so that part of the council s programme could be put in hand during the coming season.” After the reading of the report a hearty vote of thanks was passed to Mr. Cullen for the trouble he took in the matter, the Minister for his support, and the deputation. The council then went into the details with a view to getting part of the scheme put into operation this year.