MAIN HIGHWAYS BOARD

Press, Volume LXXX, Issue 24370, 23 September 1944, Page 8

MAIN HIGHWAYS BOARD

FINANCE PROBLEMS MENTIONED

SOUTH ISLAND MOTOR

UNION

The difficulties of the Main Highways Board, particularly as to finance, were alluded to by Mr M. H. Wynyard, motorists’ representative on the board, when speaking at yesterday’s conference in Christchurch of the South Island Motor Union. “Even if we had had more money available,” he said, “I doubt very much if we would have been able to spend it. owing to the shortage of supplies and of manpower. Our object has been to maintain our highways with tne money available, and to make good, as far as possible, the reading deficiencies of the last four years.” £600,000 Expenditure

Engineers had recommended the expenditure of £600,000 for the latter work, he continued, and the board had decided to undertake “ at a cost of £200,000 annually. "The first £200,000 is now being used for that purpose, said Mr Wynyard. “We want to get the road surfaces into good condition again, and there will also be a large amount of resealing to be done.” Other urgent works included the replacement of bridges, many of which were in a dangerous condition, also repairs to existing ones; the construction of deviations, some of which would have to wait until the cessation of hostilities, though others would be put in hand with certain rehabilitation schemes. The latter works would include the improvement of outlets from cities; the realignment of highways for long distance traffic, and to be free of bottle necks; connexions with aerodromes for civil aviation purposes; the improvement of roads to tourist attractions; and the surfacing generally of roads. The board’s financial situation was serious, Mr Wynyard said, and representations had been made to the ‘Government for assistance. But for the fact that the Government had not called upon the board to pay £381,000 interest on its loans, the year would have ended with a debit balance. Mr C. M. Rout (of Nelson): The board’s situation is becoming tragic. It is going to spend £2,000,000 next year, and the estimated revenue will produce only £1,600.000. That means it will have to borrow another £400,000, and that it is working on a bare minimum of maintenance—everything is, "going to the pack.” The chairman (Mr W. R. Garey): If the Government does not propose to collect interest in future, that is all to the good. But if it does intend to ask f._r interest later, that is not so good. Mr Wynyard: We haye no direct information, but we are hoping that it (the interest) will be forgotten. Mr McCombs’s Statement

Mr W. A. Sutherland (secretary to the Automobile Association, Wellington) dealt with a recent statement made to the House of Representatives by Mr T. H. McCombs, M.P. He said that though the member for Lyttelton had stated that the Government had collected approximately £30.000,000 from taxation on motorists, and that it had expended £29,000,000, the important point omitted in that declaration was that the £29,000,000 expenditure had included a sum of £11,000.000, which the Government had borrowed. “This policy of borrowing,” he continued, “was made necessary because, of the sum of £30,000,000 collected from the petrol tax, only £14,000.000 reached the Main Highways Account.” The unfortunate feature was, Mr Sutherland added, that the Main Highways Board finance was now in such a position that, as had been pointed out by Mr Wynyard, capital funds had to be used for maintenance purposes, and that was “a most serious breach of the fundamental principle that maintenance and current expenditure should be met from revenue.” Deferred Interest

There was the additional fact that, because/ of lack of board funds, the Government had found it necessary this year to d»fer payment by the board of £381,000 interest. Motorists had realised that war finance must come first, and had never denied the rights of the Government to take every possible step to advance its war programme. But at the same time, they felt that an undue incursion had'been made into motorists’ taxation, and also they had a right to request that the taxation which they paid should be used for roading purposes, as had originally been planned. Mr Carey: Unless we get on the offensive we will get nowhere. We have asked for action, and have not obtained it. If a deputation from the waterfront or from the coal miners waited on the Government something would be done. The chairman suggested that a lirief but concrete reply to the statements of Mr McCombs should be prepared by the respective executives, and forwarded to every member of Parliament. This was agreed to by the conference, and a committee was appointed to prepare a memorandum. ,