HIGHWAY FINANCE

Hokitika Guardian, 2 September 1929, Page 2

HIGHWAY FINANCE

CLEARING UP THE POSITION

STATEMENT BY PRIME MINISTER

WELLINGTON, August 30. What lie announced as a clearing df the position in regard to main highway finance was given by the Prime Minister in the House to-day. There had been a great deal of misunderstanding over the matter, lie said, but it was difficult to understand how! the impression could have been created that the Government intended to deprive the highways fund of £235,000. He wished to emphasise that the sections of the 'Main- Highways Act which dealt with these moneys meant 1 that they required to be annually appropriated by Parliament and were obviously subject to annual revision; and were not, as appeared to be imagined, a permanent charge.

The sections of the 1922 Act merely expressed a policy for the time being and, since that date, considerable changes in highway taxation and finance had occurred, which undoubtedly affected the original position. In 1922 the highways fund bad little revenue from taxation, but it was now in receipt of about £1,250,000, and was thus a revenue account, and should come (Within the category of all public accounts in receipt of revenue. The reason ifor the alteration was that the revenues of ' the highways board had increased tremendously and as a matter of fact, there was not the balance in the consolidated; revenue or in the public works loan that would enable £200,000 to be taken out and handed over to the highways board, free of interest. When the board bad it before interest free, the Consolidated Fund and Public Works Fund were in a very flourishing condition.

“Now the Highways Board lias to share with other people in the needs and requirements for paying interest on moneys being used,” be said. “The £200,000 is provided for the board l , but we have to borrow, and having to do so, we' have to pay interest, but having to pay interest, we expect the Highways Board to pay interest too.” Mr Howard: Hear hear.

Sir Joseph Ward : No board could expect anything fairer than that, so that any misappr'enhension regarding that £200,000 will no longer exist after this statement.

•:Sir Jospeli Ward said he had noticed that meetings had been held all over the country |iy motorists, local bodies, and business people who discussed the matter, but they were under a misapprehension which he hoped would be removed. /

Mr Jones: Will the £200,000 be paid? ' Sir Joseph Ward : Yes, it will be paid; but what we want is interest upon it. Mr Coates: Thirty-five thousand?

Sir Joseph Ward replied that they would he in the same position as other revenue funds, for they could not take liberties with the general finances of the country as they were not in the position of last year. Suggestion had Uen made in the South Island that •• s a result of these adjustments subsidies and grants for various local bodies works had been refused or curtail xl "T can assure the House that these suggestions are quite ineorrest,” he said. “As the matters referred to are wholly questions of policy as between the Highways Boards and local authorities concerned, they are not affected by these adjustments.” The Prime Minister again reminded the House that the revenue was ore ant! a half millions short, and concludi'J by stressing the point that it a• s on!/ by a spirit of co-operation between the people and every interest with the Government that the financial position could he put right.

the historian of the future must to a large extent rely for his information must refrain from publishing what may be justly regarded as legitimate news.

As Mr Holland says, the State convicts itself of inconsistency when, having legalised the totalisator, it declares that it shall be unlawful on The part of a newspaper to publish the amounts of the totalisator dividends. The prohibition that has been placed on the publication of dividends involves an interference with the freedom of the press of suck a character that necessarily the provision that this prohibition shall be removed is the feature of the proposed legislation that concerns us most closely. It may be added, however that if the proposal to allow of the telegraphing of investments to a racecourse is adopted the effect will be mainly to cause a diversion of investments from a channel that is declared by the law of the land to be unlawful to a channel that is sanctioned by law.