THE LOAN PROPOSALS.

Gisborne Times, Volume XXVI, Issue 2252, 25 July 1908, Page 2

THE LOAN PROPOSALS.

REFERRED TO FINANCE COMMITTEE. A special meeting of tlio Borough Council was held last night to consider the Mayor’s loan proposals for putting the streets and footpaths of the borough into thorough repair, tho acquisition of recreation grounds, and the formation of cycle tracks along tho principal streets of the town. Present: His Worship the Mayor (Mr. IV. D. Lysnar), and Crs. J. Whim-ay, J. AV. Bright, A. Sawyer, J. Somervell, AV. l’ettio, 0. Darton. J. Sheridan, J. AV. AViJliams, and IS. Ilr Mo nil.

In introducing the proposals, tho Mayor said that Councillors had had full details before them for some days now, and should ho fully acquainted with the works proposed to bo undertaken. Ho bad summarised the proposals, and made the total £42,271. Ho then proceeded at length to explain how the interest mid sinking fund on tho proposed loan could lm provided, -not only without increasing the rates, but .effecting a saving of £IOB per annum. Cr. Bright inquired how much of the amount expended in street improvement last year was of a permanent nature, and how much was expended in patching, which would*bo a recurring expense. Cr. Darton said that the crux of tho whole matter to him appeared to bo in the question, what would be fbe annual upkeep and maintenance of the 40 miles of streets intended to be put in order? To bis mind, the estimate of the overseer, of £1720 for the maintenance of 40 miles of streets was absolutely inadequate, and he would like to know how his estimate' had been arrived at. If they were going to do those works out of loans, wnere were they going to get the money to maintain them? He wanted fuller data to go on before lie was prepared to sanction a loan of such dimensions: Several of the works proposed by His Worship were not absolutely necessary. Cr. Sheridan differed' irom Cr. Darton as to the wisdom of permanently making tho roads. Tho present system of patching hero and there was not only ridiculous but expensive. If the streets were once put in thorough repair, the maintenance would not bo nearly such an expensive matter.

In reply to the Mayor, the overseer exphimou that it would take upwards of five years to expend tlio loan moneys. He had reckoned that the maintenance of tho streets during the tune tlio Joan money was being expended would ho £1726 annually. Crs. Bright, and Darton wanted to know wliat the maintenance of the £3? be! an aVerUK<i in * l,e future

The Mayor said it was impossible t 0 arrive at such an, estimate, as the amount required would depend on tile development of the town. Their roads at present wore in a deplorable state, and they must cope with the question and raise the money to put them permanently in thorough repair. If a road was properly put down, it should Last for from eight to ton years. Besides it was absolutely essential that they should at this stage take means to. secure suitable recreation grounds and to also consider the other proposals for which the Joan was proposed to he raised. At present they were paying for all new works out of rates. They should' borrow for these works, and only pay interest and sinking fund. Cr. Maim said that vbefore long they would hare to rebuild both the Haiti, .and AVhataupoko bridges. Cr. ,Sheridan was in favor of the principle of paying for all new works out of Joan moneys instead of rates, but he considered they should g 0 more iully auto the figures before accepting them. He moved 1 that tho estimates be referred to the Finance Committee, in order that tlicy could go carorully through them and report to the Council.

Civ Bright was of opinion that if the Mayor was to tell any of the rater>ai'iennntkat intended to borrow £44,000, and pay interest and sinking fund o:i, it, and then reduce tile rate, ho was afraid they would he sceptical. Cr Sheridan favored the proposals, aiid was confident that the loan could be raised without increasing the rate. ■ Cr. Bright wanted the Overseer’s figures checked by some competent authority. He had every respect for Air. Morgan’s ability, but in an ini-' Portent matter of this kind it was essential that they should bo absolutely sure of their figures. ' .1 lie Mayor said lie had no objection to the estimates going to tlio Finance Committee.

Cr. Wliinray said it appeared nonsense to him to speak of putting the streets in thorough repair before the permanent levels were taken. Ho had been amazed on visiting Wliataupoko to see tlio deep and dangerous canals along tlie streets in that suburb. He considered it an inopportune time to raise the rates. He was sanguine they would bo able to get tlibu- metal a- good deal cheaper in future. Cr. Williams supported tlie principle of constructing new- works out °f loan moneys, but agreed that time should be given for the maturest consideration. Crs. Sawyer, Mann, and Somervell, while supporting the principle of borrowing for new works, agreed with the proposal to refer the estimates to the Finance Commitee. The Mayor said it was pleasing to see that Councillors were unanimous in approving of tho principle, and it was only a question of tho amount, to be borrowed and which works should be gone on with. He then put tlie motion, which was seconded by Cr. Darton, that tlio proposals he referred to the Finance Committee ,and it was carried unanimously. Tlio Council adjourned at 10 p.m.