HIGHWAYS FUND

Rotorua Morning Post, Volume 2, Issue 219, 10 May 1932, Page 5

HIGHWAYS FUND

("Post" Special Corpmissioner),.

REVENUE DIVERSION AMENDMENT TO SAFEGUARD MAINTENANCE OF ROADS CRITICISED AS INEFFECTIVE

WELLINGTON, Monday. The proposal in the Finance Bill that not more than £500,000 of petrol tax revenue for this "year ordinarily payable to the Main Highways Board sha,ll he ratained in the Consolidated Fund was debated in the House of Representatives to-day. An amendment brought down hy Governor-General's message stipulates that £500,000 is to be availa'bl'e to the Treasury after the minimum requirements of the board have been met. The Minister of Finance, the Hon. W. Downie Stewart, said that the amendment had been introduced in order to avoid prejudicing the highways account. (It was essential that there should be some money available for capital purposes after maintenance had been provided for. Mr. F. Langstone (Labour, Waimarino) said that the amendment would make the clause null and void" because the Highways Board, which was controlled hy heads of departments, would se that there was no money for the Consolidated Fund. The policy of the board, instead of making bad roads good, was to make good roads better, and backblock roads had been practically neglected. There had been a vicious waste of public funds by the board, and he hoped that the Government would ensure that it would take first call on the fund. "Meant Nothing at All" The Leader o fthe Opposition, Mr. H. E. Holland, said that the amendment proposed by the Minister meant nothing at all and still left the Minister in supreme control. He was not in favour of any inroads being made on the highways account becanse it was important to the economic welfare of the Dominion that there should be an adequate roading system, which would facilitate efficient marketing for the primary and secondary industries. He made a plea for greater attention to he given to baekbloeks roads. The amendment gave the Minister too much power and there "was a danger that the highways would he neglected for the purpose of relieying the wealthier sections of the community from extra taxation. Mr. Holland contended that there should he co-ordination of all forms of transport. The Minister of Public W'orks, the Rt. Hon. J. G. Coates, said there had been a difference of opinion between departments as to what the possible shrinkage in petrol tax revenue would amount to this year. One had estimated a fall of about 121 per eent., while others— and the figures rather supported the contention — estimated that it would be very much less than that. There were some 10,000 miles of road to he maintained and at the rate of £60 a mile a sum of about £650,000 would be required. Mr. W. J. Polson (Independent, Stratford): "That is only for bare maintenance." Minimum Required The Minister acquiesced. The Highways Board and the Public Works Department, he continued, had been asked to see how far they could meet the situation, and after an investigation, it was agreed that £650,000 would be required to maintain the 10,000 miles. That would not provide first-elass maintenance, but reasonable maintenance for the next twelve months. "I know perfectly well that £650,000 will he found if it is necessary," said Mr. Coates. Mr. W. Nash (Labour, Hutt) said that the real question was whether the Government had the right to take money which had been raised for a special purpose and use it for general purposes. When the petrol tax was first levied, it was agreed that the money should be used. for the maintenance and construetion of roads. It was debatable whether a tax levied on a special class should be used for the benefit of all. Unless there was suificient money available for road maintenance, transport costs would increase, to the detriment of the Dominon as a whole. He considered that more money should be spent on backblock roads. Mr. Holland said the proposal was one more demonstration of the Government's anxiety, not to help the Con solidated Fund, but to save further taxation on the higher incomes. He intimated that he wonld move ultimately as a proviso that the amount retained in the Consolidated Fund should he used to improve the roading system in baekbloeks districts. That could he supported by every member of the' House. It did not involve any further taxation or further expenditure from the Consolidated Fund, but only gave a direction as to how the money which was to be taken out of petrol tax revenue should he applied. The amendment moved by the

Leader of the Opposition was taken to a division and was defeated hy 40 votes to 21. The clause was retained on the voices.