HIGHWAYS FUND.

Press, Volume LXV, Issue 19731, 23 September 1929, Page 10

HIGHWAYS FUND.

PRIME MINISTER'S STATEMENT.

MR H. C. BARLEY'S CRITICISM. "The Press report of the result of the delegation of representative* of the counties, motorists, Progress and Expansion Leagues and Chambers of Commerce throughout the Dominion which waited upon the Prime Minister is Wellington, on Thursday last, is likely to eonvey to the public a very wrong impression in regard to the true position —partly because of the condensation of the speeches made by the delegation, and partly because of the very full report or extraneous and irrelevant matter Introduced by the Premier ia reply to the requests of the deputa tion," said Mr H, C. Harley, chairman of the executive eommlttee of the Boatl Island Motor Union, to a representative of Tm Pkks on Saturday, "Prior to special motor taxation, the Government was spending annually an average of £135,000 on the roads of the Dominion (through the Public Works Department) by maintaining extensive'mileage of Government roads and subsidising loeal bodies In regard to both roads and bridges. To meet the demands of modern transport, the motorist suggested special taxation ttpon themselves on tyres and by way of license to use. A conference of the Government with motorists' and counties' representatives was held in Wellington, when it was agreed that a Highways Board would be set up for the administration of the funds, whieh would bo oomposed of ££35,000 from the Government (being the average annus] amount it was then -easting the country) pins the special taxation from the motorists. Ijater, as the funds were considered inadequate, a petrol tax was imposed, bringing tits special tax upon motorists last year ap to £1,250,000. (Boar in mind this ha* no bearing on over £1,000,000 p«id Into the general taxation of the country through the Customs by the importation of motor-ears, etc.) "The funds administered by the Highways Board, therefore, consisted last year of £1,250,000 gathered by special taxation from the motorists and £235,000 from the Government as its share of the national responsibility of the roading of the country. These rands are used by the Hignways Board mainly in subsidising the County Councils in maintaining and reconstructing the roads and bridges of the Dominion to meet the needs of modern transport. "The grievance of the delegation, representing every seetion of the community and men of all shades of political opinion and many with no political opinions at all, was the injustice that would be done if the Government withdrew its just quota from the funds of the Highways Board, leaving the motorists (as a section of the community) to supply the whole of these funds; and any reduction in the Board's would also mean a reduction in the subsidies available for the counties and a retardation of the improvement ia oar roads—leaving the Government free from its proper national responsibility, besides breaking faith with the pledge given by its predecessors in office, when this special taxation was imposed. "The suggestion by the Prime Minister that £200,000 will be loaned to the Board this year (charging £II,OOO interest on same—plus sinking fund, of course) does not satisfy publie opinion on the point at issue, doe* not redeem the pledge made by the previous Government, and does not lulhold the spirit and intention of the Act; nor does it remove the great injustice that would be done to the motorists and to the counties, who require the greatest £££s,SS£r " u " l *