HIGHWAYS FINANCES

Evening Star, Issue 22143, 25 September 1935, Page 12

HIGHWAYS FINANCES

EXPECTATIONS OF RELIEF MORE MOREY AVAILABLE THIS YEAR Hopes of relief from the “raids” on the highways fund were held out to members of the Automobile Association (Otago) by Mr A. E. Ausell, M.P., in an address last night, when ho gave a warning of a growing burden on local bodies if the annual charges on the fund were not reduced. “ This year, the Highways Board will have considerably more funds than for some years past,” said Mr Ansell. One was tempted to criticise the Government for what had been called “raids” on the highways fund, but one had to recognise the Government’s difficulties, and he knew that the Government appreciated the helpful assistance of the motorists. However, now that conditions were decidedly more cheerful and revenue more buoyant, motoring associations should- concentrate on a gradual return to the original Highways Act. The funds were at present debited for £61,000 annually as interest on free grants. Ho suggested that the first objective should be to have that sum made a charge on the Consolidated Fund, to which it properly belonged. In the early days or the Act, the annual grant from the Public Works Fund for the construction and maintenance of roads was £200,000; it was the Government’s contribution. As finances became more difficiilt, the Government decided that the free grants should be a charge on the Highways Fund. "It is obvious to everybody that we cannot get back at once all that we might wish to have, but in this particular case we have an excellent argument that this £61,000 should be a charge on the Consolidated Fund,” said Mr Ansell. Unfortunately, the annual charges on the Highways Fund were becoming excessively heavy, both to the detriment of motorists and local bodies. He appreciated the steps taken by the A.A. (Otago) to gain the co-operation of the local bodies, and it was to the club’s credit that it sought to understand the local bodies’ problems. If the annual charges on the fund were not decreased, or at least not entitled to grow larger, the burden on local bodies would become heavier. He had always maintained that with the increasing traffic on the roads local bodies were entitled to a much greater contribution, but if the funds were to be_ tampered with by the heavy accumulation of annual charges, it was quite evident that justice would be done neither to the local bodies nor to the motorists. There was a reasonable chance of success if the South Island Motor Union pressed for the removal of the interest on free grant charge, said Air Ansell. The Mayor (Rev. E. T. Cox) said it wan estimated that motorists in this district were taxed to the extent of £IOO,OOO annually. If that were so, they were fully entitled to a return in the shape of better roads. He considered that motorists were over-taxed, and he advised Mr Ansell to use his every endeavour to bring about a reduction of the taxation. '