The Guardian And Evening Star, which is incorporated the West Coast Times. SATURDAY, AUGUST 31, 1929. THE HIGHWAY FUNDS.

Hokitika Guardian, 31 August 1929, Page 4

The Guardian And Evening Star, which is incorporated the West Coast Times. SATURDAY, AUGUST 31, 1929. THE HIGHWAY FUNDS.

There has been apparent a well-or-ganised and sustained’ attack on the government for the alleged raiding of the Highway funds.. The law governing the administration of the funds provides for a contribution annually from the Consolidated fund, and the holding of the grant has raised a storm of protest from the motorists and also from many local bodies. There has been much vehement objection to the course, but tile Prime Minister hits continued resolved on his course of action. The highways system, the introduction for which has to be credited in all fairness to Mr Coates, has been responsible for much good work. Large sums of money have been raised by tyre taxation and license fees, and at one stage a large sum of money was accumulated. This enabled the subsidy to be increased, and for ordinary purposes it now stands at £2 for £i. In special cases a larger subsidy is given, while in others full cost is provided by the Highways Board. Since then the petrol tax was added to the sources of income and more revenue still was derived. Then came stories of accumulated funds, as well as a slowness on the part of the South Island to participate as fully as it might in the funds available for roads and bridges. Much additional money was found to assist in easing the unemployment troubles in many parts, while the Board 1 set e out a .five years’ bui’ding programme to ear-mark funds in hand and prospective income. Realising the position when lie found he had to provide for a deficit, Sir Joseph Ward decided to withdraw the annual grant of £35.000 from the Consolidated fund, and stop for the present the allocation of £200,000 loan money to the Board. Further, he intimated the intention of levying interest on the Board for loan moneys advanced already. This procedure has been strongly objected to by the motoring organisations and many local bodies hut there is good reason on the strength of the funds in hand anddarre annual accretions to the Board, for the action of the Minister of Finance. Sir Joscnli Ward has explained that what ho has done is in accordance with the law, an<jl the Government has the concurrence of the Auditor and Controller-General. In a statement in the House the other day, the Prime Minister stated that high-

ways’ finance was mostly loan moneys, and it would be unsound and ridiculous to divert more of the proceeds of taxation into one activity than was -required in the year, especially when there was a shortage in other directions. Therefore ,it was not proposed in the meantime to make any further transfers from the Public Works Fund. This did not necessarily mean that the t.tal alloca.ion of loan money to the Highways Board was to be reclined by £201),000, but merely that the whole amount to be provided for this purpose in any. year would be raised under the Highways Board b rrowing authority, instead of being borrowed by the Public Works Fund and then transferred to highways. In view ol the general financial position, I think, said Sir Joseph, there can be no doubt the Government is justified in saving the Consolidated fund instead of increasing general taxation to obtain £35,000 more revenue, for that is approximately the amount involved. II in any years the Highways funds arc not sufficient to provide for the work considered necessary, the question ol voting an additional amount from the Consolidated fund will have to be considered in the light of the general financial position at the time. The Government -is evidently decided to leave the matter at that. Sir Joseph is setting the finances in order, and he must be trusted, as lie will I .generally, to do the fair thing. . There may be even a curtailment of 'the highways ecependiture but. 'better, timely reorganisation under a sensible proposal, than a dislocating retrenchment when actually face to face with a deadlock. The action of the Government in the face of popular clamour as evidently organised, is evidence of the need .for the action in the public interests of the country as a whole.

The old saying that nothing succeeds like success is wed exemplified by the work of Mr Phillip Snowden, British Chancellor of the Exchequer, who has won undying greatness by his great stand at The . Hague Conierence to settle the reparations issues. Mi Snowden stood alone in the stand against the Young Plan, but he stood on firm ground, and refused to budge from his demand for a fair deal. His persistency threw the conference almost into chaos, but there can be no doubt as to the rights of his stand. The costly concessions which Great Britain has nfftde in the past, together with the generous actions all through the period of the Great War, and her immense sacrifices to assure victory which carried with it the stability of Europe, were not recognied as they should have been by the Powers so lavishly helped. 1 Mr Snowden has been roundly abused .by jthe continental press, and colleague statesmen representing the Allied' Powers have been saying some hard, tilings .of him. But he hns won the approbation ol Great Britain and the Empire, and has lifted the Labour Government to a much higher level in the public esteem. He has displayed those characteristics typical of a Britisher, and has done so on a sure foundation. Incidentally lie has secured to Britain several extra millions and the right to important commercial . advantages which will be of the highest service in assisting the coal mining industry, These are tangible results which will stand to the Chancellor’ credit for all time. Incidentally it might be remarked that the Prime Minister (Mr MacDonald) comported himself with becoming mien. When a deadlock seemed inevitable there was evident pressure on the Prime M.nister, fo intervene. Mr MacDonald, however, wisely trusted his colleague, and the result bears out that implicit confidence, .ar Snowden had his own field to operate in, and was giving a free hand, doubtless on a settled line of policy. The achievement is a splendid result for Labour at this stage of its administrative work, and will enable the Government to function with greater freedom in the immediate future, without fear of hampering tactics by the combined opposition which happens to. be stronger numerically than Labour. The result bears out what Mr Snowden said at the outset,’ that a settlement could be reached within the Young Plan by a readjustment of the quotas and that is what has come to pass so satisfactorily.