HIGHWAY FUNDS.

Auckland Star, Volume LXI, Issue 15, 18 January 1930, Page 7

HIGHWAY FUNDS.

drift of subsidies.

■NORTHERN ALLOCATIONS. (By Telegraph.—Special to " Star.") WHANGAREI, Friday. A statement that he did not think it could be shown that any money had been diverted from North Auckland highways to other parts of New Zealandwas made by the Minister of Public Works (Hon. E. A. Ransom) to-day, when comment was made by Mr. H. M. Illishworth, M.P., concerning the contradictory reports that were circulated concerning the Highway Board's funds. It was reported, said Mr. Rushworth, that on one . hand the board had £1,200,000 invested,-and on the other that it had no ..money; ; ;Would . the Minister clear up the point. _■ In reply, Mr. Ransom said that most pf the North Island counties had been quick to avail themselves of the board's subsidies by raising special' loans, ! Soutli Island counties, however, had preferred to carry out roading out of revenue, without raising special loans, and at first did not take full advantage of the board's offers. Now the Southern counties had realised the advantages of the system and were inundating the board with applications for subsidies. The board's funds were allocated according to the amount of expenditure each district was entitled to, and most of the moneys invested would, if spent, have been spent in those districts which had been slow to raise special loans. Far- from Northern money being diverted to other parts of the Dominion, it might be found- that the drift was in the opposite direction. The board had not curtailed its operations. Whereas once it, had to urge local bodies to raise loans, the latter were now getting ahead of the board. As a result an impression was -being created that the board was notprepared to spend money as before, although it was spending as much, or a little more.