The Wainui-o-mata Loan – To the Editor
Sir – Will you kindly permit me a remark and a little more on Mr S. Brown’s letter addressed to you, in so far as it bears on the financial position of the loan. The public are obliged to him for a certain amount of information regarding it. He mentions an asset of which I was not aware, and so far I accept his correction unreservedly. It appears there is unused plant to the value of £3800. A note by the Treasurer stating this fact would have made his return more complete. I would, however, doubt the likelihood of the material realising the amount indicated, but some time or other it may do so, and at all events it is money’s worth.
I do not see the force of Mr Brown’s further statements on this subject. He speaks of a sum of £2800 spent on mains in the city, not provided for in the loan, but which, he gives the public to understand, is nevertheless, charged against it. How should that arise? All expenditure ought to be charged to its proper fund, and I can hardly think the Treasurer’s usual accuracy will be at fault in this particular.
As a further acknowledgment, I am sure Mr Brown will excuse me for not knowing (although he says I ought to know) that the interest on this special loan is paid out of the general rate in what he airily speaks of as “the ordinary way.” So far as I do know, I am led to the conclusion that the interest is paid out of this rate, not in the ordinary, but rather in some extraordinary way, because a loan for a reproductive work of this character should bear its own expenditure.
If, at the outset, an advance is required for the necessary outgoings, that advance should certainly be a charge against the future income of the work in question, as I suggested in this instance. The general rate being insufficient for its own proper and legitimate purposes, ought not to be drawn upon for water supply, which, judiciously managed, should prove abundantly self-supporting.
The public at present have no idea of what is doing or about to be done regarding this Wainui-o-mata business. The discussions in the Council do not enlighten us a bit. It is an important undertaking enveloped in doubt and difficulty – to use Stephen Blackpool’s phrase, “all a muddle.” Mr Brown would really confer a benefit upon the ratepayers if he would tell them, from his practical knowledge, what he thinks of the whole matter – specially the extent of the damage, and how the Council propose obtaining funds for its repair and for the completion of the work.
I am, &c.,
William Hutchison.
