PROPOSED CONTROL

Waikato Times, Volume 124, Issue 20853, 11 July 1939, Page 8

PROPOSED CONTROL

CHARGES ON LOCAL BODIES ESTIMATES OF FUTURE REVENUE COUNCIL REVIEWS POSITION Stating it was satisfied that under the proposed scheme to improve the Waikato Airport at Rukuhia both the urban and rural populations in the surrounding district would stand to gain much more than they would be asked to find, the Hamilton Borough Council, In a circular letter received at the monthly meeting of the Waikato County Council to-day, stressed the importance of an up-to-date aerodrome to the Waikato. The borough council did not suggest that other local bodies should pledge their propel ties as security for a £12.500 loan which it was proposed to raise, noi did it make any attempt to apportion costs. Jt was prepared to ask its ratepayers to find the security, and would also temporarily advance from time to time as required, up to say £SOO to meet expenses. This would be done subject to the local bodies agreeing under seal to contribute in proportions to be stated in the agreement t> any annual deficit; also on their agreeing to the constitution of an Airport Board, representative of the contributing authorities. If such an agreement could be reached toe Hamilton borough council would undertake to promote a local Bill on the lines of the Whangarei Airport Act (1937). It would make itself responsible for the purchase of the land and would pay all the costs involved in securing the passing of the Bill by Parliament. Capital Expenditure It was estimated by the borough council that the capital expenditure within the next three years, would involve tlie purchasing of the land, stock and buildings and part of Mr J. A. Steele’s land (£11,500), plus working farm capital and additional stock (£1000). A 30-years loan on the instalment principle with interest at 4J per cent (allowing 6 per cent) would require £5 18s per £IOO in half-yearly rests. The annual charge would be £750. In a letter to the borough council, Mr G. R. Smith, owner of the Rukuhia property, said that in three years the aerodrome showed a net return of £SOO a year after charging £ll2 10s travelling expenses, but without charging interest on capital outlay. The Hamilon Borough Council subsidy of £IOO a year was not included. Mr Smith estimated an increase in fanning operations to produce about £>2oo* a year from the additional area of 67 acres which it was proposed to include. The additional house to let would yield £75, fees from the first flying service, £IOO a year; other fees £25; a share of future pageants, £100; thus providing £SOO a year above what, was previously obtained. Effect of Rearmament “Of course,” wrote Mr Smith, “this estimate is for the immediate future and no doubt in a few years’ time, when rearmament is complete, and we can get delivery of passenger aircraft and more trained pilots, the figures will look very small.’’ The borough council expected the average expenditure over a period of years to be £904, which included interest and sinking fund on the proposed loan, repairs and maintenance and supervision charges. The annual receipts would be about £775, derived from rent from Aero Club, rent from houses and profit on farming operations. Fees from Hying operations were not taken into account. On the figures submitted the local bodies between them would have to share an average annual loss of £129. During the period of reconstruction (about 12 months), little revenue would be available from farming operations, and provision would have to be made either to capitalise the interest charges over this period by adding an amount to the loan, or bymeeting say one and a-half years’ interest and sinking fund charges from the ordinary revenue of contributing bodies. “Despite anything which may be said to the contrary, the number of people within economic distance of an up-to-date airport must have some bearing on the use that will be made of that port, and the use tho people make of the port must eventually affect the value of all property within its economic radius,” stated the council’s letter. “One has only to look back on the effect of the opening up of the Main Trunk railway to realise what effective communications mean in terms of population and values. Sheep farmers in particular should be interested in the benefit which must come to them when, instead of having to rely upon agents to purchase their sheep from the East Coast, they will be able to board a plane in the morning, attend the sheep fairs on the coast and return in time for dinner at home in the evening. If the savings are oniy three-pence a head—the aggregate will reach many times the sum they will ever be called upon to find." The population .1936 census) of the affected counties and boroughs (with the percentage each constituted of the whole in parenthesis), were: Hamilton borough, 16.150 (31 per cent, ; NVaipa county, 10,864 (21 per cent. : Waikato county 9,570 (18 per .•cut,; Raglan county 3.353 6 per cent,; Piako county 2,676 (5 per cent; ; Te Awamutu borough 2,224 (4 per cent) ; Cambridge borough 2.203 (i per cent); Huntly borough 1.942 (4 per cent ; Morrinsvilie borough 1.792 3 per cent.. ; Ngaruawahia borough 1,394 <3 per "cent;. Total 52,174 99 per cent . Populations of town districts and the Matamata County were not included. Government Policy Despite personal opinions, stated ‘lie borough council. Government policy had been clearly established and 110 Government money would be available io improve the present.

ground while it remained In private hands. No Government money would be available In purchase the land or In erect buildings. Unless the local bodies purchased the area it would not be improved, and unless it was improved no regular air services cor.ld be expected. There was every likelihood that unless the area was soon continue subsidising training there. This would place an intolerable burdin on tiie existing club, which might I ben be forced out of business, t„ the further detriment of tire whole district.