H—3

Financial Position Under Unified Control 64. (1) While we consider that the North Shore area should be brought under the jurisdiction of the Metropolitan Board, we think that the costs of constructing, operating, and maintaining systems of sewerage and sewage treatment and disposal for the North Shore area should be kept separate from the costs of systems in other parts of the district and that on the one hand the North Shore area should be under no liability for the costs of such other systems, and on the other hand that the other parts of the district should not be liable for the costs of the North Shore systems. (2) Our reasons for this opinion are as follows : It is clear that there will be no connection between any comprehensive North Shore drainage system and the drainage system of any other part of the district. While we consider that this factor does not justify the constitution of a separate drainage authority, we think that it does justify and, indeed, require the complete separation of financial liabilities. There is not, in our opinion, any sound reason why the North Shore area should be called upon to contribute to the costs of draining any other area. Nor is there any reason why any other area should be required to contribute to the costs of drainage of the North Shore area. We consider that our opinion in this connection is supported by the probability that the construction of any large-scale sewerage and sewage treatment and disposal works for the North Shore area will not be undertaken for several years. We should mention also that all the boroughs were strongly in favour of the complete separation of financial liabilities. 65. The information required to enable us to recommend any detailed scheme of sewerage and sewage treatment and disposal for the North Shore area has not been submitted to us, but we consider that this is not material and that it is unnecessary and probably inadvisable for any detailed recommendations to be made at this juncture. In our opinion, the matter requiring immediate attention is the inclusion of the North Shore area in the Metropolitan District and the bringing of the area within the jurisdiction of the Metropolitan Board. When these things have been done the Board should formulate a comprehensive scheme suitable for the requirements of the area with plans for the progressive execution of the scheme. Conclusions and Recommendations 66. We set out below our conclusions and recommendations with respect to the matters comprised within paragraphs (4) and (5) of the order of reference : (1) The methods of treatment and disposal of sewage at present employed for the Boroughs of Northcote, Birkenhead, Devonport, and Takapuna are not the most suitable. (2) It is unnecessary and inadvisable to make any recommendations at present for the adoption of alternative methods for the treatment and disposal of sewage from the said boroughs. (3) The said boroughs, together with certain parts of the Waitemata County (as described in paragraph 59), should be constituted by an amendment of the Drainage Act a combined sewerage district which will be hereinafter referred to as the Northern Sewerage District. (4) The area comprised ivithin the Northern Sewerage District should, by an amendment of the Drainage Act, be added to the Metropolitan Drainage District constituted by section 3 of the Act. (5) The Northern Sewerage District, should not form part of either the Inner Area or the Outer Area of the Metropolitan District. (6) Provision should be made by an amendment of the Drainage Act for the said boroughs and the Waitemata County to be given equitable representation on the Drainage Board constituted by section 5 of the Act.

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