HIGHWAYS GRANT.

Auckland Star, Volume LX, Issue 223, 20 September 1929, Page 9

HIGHWAYS GRANT.

MONEY WILL BE PROVIDED. PREMIER'S ASSURANCE. "NOT THE LEAST DOUBT." (By Telegraph.—Own Correspondent.) WELLINGTON, Thursday. "I have not at any time, either in the Budget or in any other place, suggested one word that would allow anybody to infer that there was the least doubt about the £200,000 going to the board this year." This emphatic answer was given by the Prime Minister, Sir Joseph Ward, to a large . deputation representing- the North and South Island Motor Unions, automobile associations, progress and expansion leagues, chambers of commerce, and other local bodies, which waited, on him to-day to discuss the transfer of £200,000 from the Public Works Fund to the construction fund of the Main Highways Board.

The sum of £2,000,000 would be spent this year entirely in connection with motorists, but it was wrong to assume that other sections of the community should be made to go short of revenue while the motorists were left alone. All that the board was asked to l do was to pay interest on the grant of £200,000. Was not that a reasonable thing? The interest on that sum would amount to about £11,000 a year;

Asked whether the Highways Board would receive tie free grants of £200,000 and £35,000, Sir Joseph replied that: "With a reservation, that amount of money will be provided this year.

"Whether you will receive it without having to pay interest," he added, "depends upon the decision that will have to be arrived at by me during the course of the next few days. If the interest is to be paid, then you will have to bear your share. If we have to borrow the £200,000 then it is only right and proper that the rate of interest to be paid by the country should be paid by those who receive the grants."

The Prime Minister made it clear that it was not proposed to charge interest on grants that had been made in the past to the Highways Board.