HIGHWAYS FUNDS

Sun (Auckland), Volume IV, Issue 1052, 16 August 1930, Page 5

HIGHWAYS FUNDS

CURTAILMENT CAUSES CONCERN GOVERNMENT’S PROPOSALS The Government's proposal? to curtail the funds of the Main Highways Board, as indicated in the budget, is causing some concern, and this was expressed in a letter forwarded to the Northern members of Parliament by the North Auckland Counties’ Association. It was decided at a meeting of the Waitemata County Council yesterday, to endorse the association’s views by telegrams to the members of Parliament of the district. According to the association, there were no prospects of easing the heavy' burden on county ratepayers, notwithstanding the increase in petrol tax. On the figures disclosed by the Prime Minister the Main Highways Board would now be required to carry £200,000 and £.35,000 which had been provided in the past by the Public Works Fund and Consolidated Fund, respectively. There was £ 61,300 interest on accumulated transfers totalling £1,226,000, and £220,000 which has been paid out of the Consolidated Fund to local authorities as subsidies on rates. These additional amounts now required to be found out of the funds accruing to the Main Highways Board totalled £516,300. PETROL-TAX INCREASE It was also noted that in future the whole of loan capital required for main highway construction would be raised especially for that purpose and consequently the interest on this would also require to be found out of the revenues fund of the board. The increase in petrol tax might be expected this year to produce £450,000 and consequently the Main Highways Board’s funds this year would be over £60,000 worse off. It was also noted that a substantial amount was to be provided this year out of the proceeds of the additional tax for expenditure on subsidiary highways through outlying districts. “How this is to b© accomplished without a further serious curtailment of expenditure on existing highways is difficult to comprehend,” the letter states. “Local bodies have already been advised that there has been a considerable reduction in the funds for the present year. It is now aparent that not only is the much-needed relief in local body rating as far off as ever, notwithstanding the additional tax. which will also be a serious burden on the farming community, but an unprecedented raid will be made on the legitimate funds of the Main Highways Board for Budget balancing purposes.” Keen disapproval of a proposal designed to divert the revenue of the board into other channels was expressed by the association which urged active opposition to the proposals.