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Hokitika Guardian, 26 August 1930, Page 4

Tun fact that the Government lias agreed to have the highways system overhauled for next session of Parliament, gives point.to the danger indicated in this column last week. Tt was then explained that the highways funds were, being saddled with special statutory payments which were in danger of remaining, he the revenue of the Highways Board what it may. ‘With the petrol tax increased, the new obligations could he met without loss of revenue to the local bodies; but by decreasing the tax—as is inevitable—the Board in time will be worse off financially than it was before the tax was increased, .because it lias to carry additional annual burdens not borne previously. The extra amount, is estimated at over half n. million annually. This state of affairs will probably be experienced after Parliament puts the scheme through its next overhaul—so that the last state of the local bodies is going o be worse than the first. The late increase- in the petrol tax was a necessity of the hour. Government found it had to be relieved of certain expenditure from its consolidated fund; and for financial reasons also, recouped in other directions, so as to assist in meeting its annual interest 'bill. The highways system was one way of doing both strokes of policy under conditions which wore soundly arguable But having achieved the purpose and set things rightfor the year, the Prime Minister has left thp way open for a complete review of the situation within a year. In the • meantime there will hie steady organised opposition on tlm pfU’t of motorists to the extra tnxotiou, and the opposition is such that it is sure f o he placated in nart if not in whole. For that reason the general''situation is going to be very unstable, and local bodies in particular will be chiefly affected The Highways Board is not going to have the stability it was onco expected. This chopping and changing is not going to ho good for the country. The Board has planned over some years for mnnv important works, but if its finnnoe is not going to be assured the position will fie difficult in the extreme, and mal-administyo’ tion will bo the upshot,