COUNTY LOANS.

Gisborne Times, Volume XXVI, Issue 2223, 20 June 1908, Page 2

COUNTY LOANS.

CR, LYSNAR’S PROPOSALS c AN OFFER TO COUNCILLORS. During the meeting of the Cook County Council yesterday, Cr. W. I). Lysnar moved that a loan of £IOO,000 be raised to bo expended as follows :—Waikoliu Riding £30,875, Waimata Riding £13,285, Patutahi Riding £7,355, Gisborne Riding £lO,295, Whataupoko Riding £4,415, Arai Riding £11,700, Hanguroa Riding £6,020, .and To log a Riding £15,440. In doing so Cr. Lysnar said tho abovo was compiled in accordance with clause 4 of the Committee’s report, which roads as follows: “In a proposal of this kind it is essential for the Council to see the loan'is fairly apportioned over tile whole County, and that oacli road and locality gets its fair share of tho loan money in proportion to its contributions, and it is upon this basis the Committee suggest the Council should work, and so define and apportion tho loan money tboforo the ratepayers are asked to vote, and when they do vote tho voting papers should show specifically tho proportion of the loan each road or locality i 6 entitled to, so that it would bo hereinafter impossible for tho Council to deviate or alter tho quota available for each particular road or locality.” When tho proposal was last before tho Council his motion was a for a loan of £200,000. Since then there had been a change in tho money market, and in tho finances of farmers. These changes prompted him to bring tho matter forward again, so as to affirm the principle of constructing roads out of loans, instead of from revenue. He maintained that if a loan of £200,000 was sanctioned the rates could be reduced to- for the next eight years, or if £IOO,OOO was borrowed to 3d for the next five years. There were about 800 miles of road in the County, which absorbed about £9OOO for general maintenance, and left £2600 for general administration and £10,400 for now works. A loan of

£200,000 would mean a saving of £115,467 in eight years, and a loan of £IOO,OOO a saving of £48,780 in five years. Under the present system tile roads were merely patched. His proposal meant to allow- £4OOO for road-making machinery, and the rate required to pay interest and sinking fund would he only half of tho rate now levied and good roads would bo provided with less cost to the ratepayers than at present. Alany of the roads were in a disgraceful condition; but the Council could not afford to put them in order out of revenue. lie hoped the proposal would bo carried, and -would agree to the report from the Committee sot up to consider tho proposal. He submitted the scheme should be put to the ratepayers and he would abide by their decision. Cr. Boland seconded tho motion bo as to allow tho .proposal' to go before the ratepayers. Cr. AlacDonald said the whole of the ntonoy borrowed by the AVaiapu County was £13,954, out of which sum £11,200 was spent on bridges, and £2700 on roads. .Nearly all the roads had been made out of revenue. Tho Chairman said he would oppose the loan. The time was inopportune to borrow, .and the Council would not bo justified in recommending the ratepayers to incur debts with money at 5j per cent. It would bo better to wait until the money market was easier.

Cr. Lysnar: AVliat about the decrease in the rates? Tiie Chairman: What about tho greater length of roads you would have to maintain? If you turn mud roads into metal roads you will have to maintain them, and the same rate would he required for that purpose. Cr,-Matthews: Every road will require a certain amount of maintenance. It is a mistake to think the maintenance will decrease; but, on contrary, once a road is metalled you can’t afford to let it go back. AVliatever way you look at it you can’t do without maintenance, which would even amount to more than at -present, ft would pay better to lay down tramways. The whole of Cr. Ly - uar’s assumptions are based upon a condition of things that might never occur again. The proposals are not pralcticable. 1 will .support any scheme that would he of benefit to the ratepayers, but I. can not accept Cr. Lysnar’s scheme.

Cr. Lysnar: I will stand by the statements I have made and to prove I am in earnest I will give each and every Councillor a deed that I will pay his rates if my proposals do not work out. To prove my earnestness I have put- my offer in writing,, and I will -give every 'Councillor a copy of the document. He then circulated the following offer, which was typewritten, among Councillors: - “Cr. AA 7 . D. Lysnar’s offer to all Councillors.—lf a £200,000 loan is raised, and expended in- accordance with the Committee’s report, dated 21st October, 1907, and apportioned as suggested by Clause 9 of'the report, so that each road in the County gets its quota, and tho money derived from rates is only applied and used in payment of interest not exceeding 4 per cent., and sinking fund i per cent (on tho £200,000 loan), ordinary maintenance, as well as ordinary administration (and not for new works, which should bo provided out of loans), I am satisfied that a )d rate will be sufficient to cover the above for tile eight years following the raising .and expending of the first £50,000 of the loan, and, if a £IOO,OOO loan is raised, it will require a £d rate to cover tho above for the five years following as stipulated. “So long ns the rates levied are used for tho sole purposes stipulated abovo, I am prepared to -undertake by deed, to pay all the present Councillors’ rates, which they may he called upon to pay over and above the above rate of 3d, if £200,000 is raised for eight years, or 3d if £IOO,OOO is raised for five years, with these extra reservations, that, if the subsidy to Hospital and Charitable Boards should in any one year exceed last year’s contributions, then the excess shall not be taken into account-, and also that , the whole County shall remain undivided.”

Cr. Matthews :No Councillor would accept such payment. The Chairman : No Councillor with any self-respect would accept such a deed. Cr. Matthews: I don’t want one. You aro only playing to the gallery. Cr. Lysnar: I am playing to the gallery because I find it necessary to play to the gallery some times. Cr. Matthews: Will you speak to the Chairman, Sirl I am not the Chairman. Cr. Lysnar: I am very pleased to have the opportunity to take a vote, •as it will give, the gallery, or the ratepayers, a chance to decide the question. I am sure the ratepayers will support what I put before them rather than put up with the disgraceful roads. 1 would be willing for the Council to take a short adjournment and then take .a vote; because those who vote against the scheme vote for a double rate. Cr. V bite: The Council does not agree upon your allocation of the money. Lot. the Council start on something new a,ml apportion the money. Cr. Matthews: Let us put the matter off until after the next Countv election. Cr. MacDonald: JVo can get £6OOO at 31 per cent, from the Government every year. Cr, Lysnar: Yes I and the £6OOO would be worn out before the rest of the money is available. That outlav would cost to much to maintain. Cr. MacDonald: That is what we have been trying to tell von. (Laughter.) ° The Chairman asked that Cr Lvsnar be not interrupted. Cr. Lysnar: Perhaps it would be better to consider the matter in the morning. Cl-. Boland: Adjourn until earlv next month. Cr. Matthews: I know that many large ratepayers are against the proposal. The Chairman : I will ask Cr. Lysnar to withdraw his offer to pay Councillors’ rates if tliev will vote in a particular way. I don’t think Cr. Lysnar moms it that way,, but I think that aspect should not go out to the public,.

Cr. Lysnar said lie would withdraw " what he said. Ho only wanted to back up hi 6 belief that his figures were correct, and ho was prepared to stake his property to show that not , more than a )d rate would be required if tho £200.000 was borrowed. “As soon as eacli Councillor is-out-si do the room I will repeat my offer,” ho added. The Chairman: Not to inc. If any Councillor accepts the offer, ho is not fit to sit at tne Council table. Tho Council then decided not to adjourn tho discussion. Cr. White moved that tho Council borrow £100,006 on the valuations at the next assessment. He did not want to .vote against the loan; but against the allocaion of tho money. Cr. Matthews said lie would accept sucli a proposition. Cr. Lysnar: That is killing the thing. The Council goes out of office in November, and you are putting tho proposal off until February. Cr .White: Well then, alter your resolution. Cr. Lysnar: I can’t consent to do so. The amendment is but a negative vote. The Chairman: I think it is a fair amendment. Cr. White’s amendment was mado to read “as soon as the near valuations come into force,” and on being put to the Council was carried, thus defeating Cr. Lysnar’s motion.