BOROUGH LOAN PROPOSALS.

Gisborne Times, Volume XXVII, Issue 2403, 19 January 1909, Page 6

BOROUGH LOAN PROPOSALS.

ROADS, DRAINAGE, AND KECRE

ATION.

SOME RATEPAYERS’. OPINIONS

fin speaking to a “Times” reporter on the loan proposals Captain W. H. Tucker said lie looked upon the borrowing of such a largo sum of money by such a small town like,. Gisborne with considerable apprehension. “The effect,” he went on to say, ‘.‘would be to almost double the rates over the drainago areas 1,2, and 3, and. t materially increase the rates over all property in the Borough. The time was not,” in his opinion, to borrow large sums of money, and a small town should not borrow more than was absolutely necessary, because increased borrowing meant increased and increased rates meant increased rents, and as everyone knew, increased rents kept people from coming to tire town. Another effect of increasing, rates would be that all improvements would be retarded, .because property-holders know that as their properties are improved the valuations are raised, and the rates proportionately increased. The burden would then fall upon the poor nian, for while the landlord might have to pay the rates the tenant would have to pay the landlord by increased rental.

“The one object of the Mayor,” said Captain Tucker, in conclusion, “is to try and find ways to spend money. Such an idea would • be very good if there was a large revenue in rates or if money was cheap, but a town the size, of Gisborne .should try to live within its means. Looking at the proposal to borrow money for road improvement,all I can say is that I hope if the money is borrowed that it will, be well spent, for there i-s a. need for good roads, but I don't see any need to spend money on recreation reserves. Gisborne has an open sea front with good beaches, two fine risers that could be improved and made better use of, two small parks, and two racecourses. Quite enough, surely, for a small town, and I don’t think there is any need to call upon the people to borrow £6OOO just now.”

The- reporter sought, the- opinions of of heads of various financial firms that ore interested in property values in the town. “Wild Utopian schemes,”

.said one gentleman, during the conversation. “Schemes that arc but the dream of the future, and are years' ■ahead of the times. The Mayor is but boating the. wind, and the proposals are beyond the possibilities of the small number of ratepayers in the town at present. The few properties that are within the areas to be sewered cannot stand an increase of. 3s odd on their rates, and,l am confident they will not listen to the proposals. Then again the money market is not favorable to secure borough loans at a low rate of interest ; for the time is not opportune to approach the money market. But apart from that thero is a broader question, and that is:— can tlie town at the present time bear the interest on ,-£113.540? for the rates to meet that interest will hr: more than double, in the sewered areas, than what is levied now. The scheme is too large for many years to come; it is beyond the present requirements. and I hope the ratepayers. for their own snkes won’t listen to it.”

Another gentleman largely interrested in property was just ns emphatic in his criticisms of the proposals. <! J .am very disappointed in the proposals that are advertised/’ he said, “and I hope they will be all thrown dnt by an emphatic negative vote. Daring his election speeches the Mayor promised the ratepayers all these blessings without increasing the rates, and what is the result? The drainage of the centre of the to wn are to be further rated 8s in the £ or more than double the present rate, which is a fraction over 2s lid. It is all very well for Mr. Lysmar to tell the people that property will increase in. value, but immediately values increase up goes the rate, or the total rate in proportion. It, was only the other day.” he continued, “that I was speaking to the Mayor and 1 asked him if he really thought the town could have all these good things and pay less pit os. Such an idea is absurd. and suali finance is impossible, for what is the difference between a high rate and moderate values and a low rate and values that rare out of reason? diet the Mayor tell the ratepayers the difference. I have property'/ but I don’t want an exorbitant value put upon it. and a corresponding increase of rating. If I.want to sell out I can fix my own price, I don’t want the Tbnyn Clerk to fix it for me, because I am sure that every time property values are increased the rates are increased also. The Mayor is not a financial expert, that is apparent from the proposals now before the ratepayers, who are heavily rated already, and I hope they -won’t vote for the increased burden.” “I intend to go to the public meeting and oppose the roads and drainage proposals.” said Mr. lan Simson to the reporter. “I will oppose them on broad lines -because I say that the drainage scheme is ten or fifteen years ahead of the. times, and with the present rate levied on all property. the Borough roads should be kept in repair out of revenue. The time is not ripe, and the town is not ready to bear a heavy loan. The population is yet too small to hear the interest on a sum of over £IOO,OOO, and I hope that the proposals to borrow money for Mr. Mostaver’s scheme and to make roads won’t be carried. I hove nothing to say against improving the parks. Gisborne could do with more recreation grounds, but at present the people cannot afford to pay double rates for the benefit of drainage, and it is even proposed to ask those ratepayers who will get no immediate benefit from the sewers to pnv their portion upon the cost of the outfall sewer. The whole scheme, I think, will fall through, and I think the ratepayers would prefer a septic tank system. That system has been tried successfully in other towns land it would suit Gisborne for many years to come.” A builder and contracter was next asked to express an opinion upon tho question, and though a favorable opinion was anticipated by the ’reporter the gentleman said he could not give the, proposals his support. “If tho -proposals are carried.”, he said, “the town will be overburdened and all building will he stopped, because pco- ■ pie wi'f not build and increase their property values to be rated as 5s in the £ 'on rental values. Property holders will find that they will be called upon to pay heavy rates while

tenants' will find that rents will bo increased. The total amount of the man is far too great, and I hope tlio proposals will not be carried.