CHAOS FEARED

Dominion, Volume 28, Issue 113, 6 February 1935, Page 11

CHAOS FEARED

Loans to Highways Fund HUGE INTEREST CHARGE Strong objection to the charging of interest by the Government on advances to the Main Highways Board was heard at the half-yearly meeting yesterday of the North Island Motor Union, which decided to make a protest. “Some few years ago when the Government found it necessary to have more money available for national purposes the motor organisations were consulted, and £500,000 was transferred from the main highways account to the Consolidated Fund,” stated a memorandum placed before the meeting. “Because of the then existing financial crisis the motorists agreed to this being done as a temporary measure only, Lut the practice has now become an annual affair. “An examination of the schedule of interest and redemption charges debited against the Main Highways Board’s revenue account discloses a steady increase in the sums annually charged. The slight drop in 1933-34 was due to the general reduction in interest, but the trend is upward, and it will be noticed that the sum of the debits has almost doubled in six years. It is therefore reasonable to assume that the bill will double again in the next six years and then total £400,000. “The reason for the increase in tlie interest and redemption account charges is that the Government is at present, in our opinion unjustifiably, treating all moneys paid to the construction account as loan money. In the year ended 1933-34, £260,000 was allocated to the construction account and treated as loan money, and in the year 1934-35 the sum of £510,000 appears on the estimates for construction.

“In view of the fact that motor taxation was imposed for reading purposes the motorist has every reason to resent the road fund . being handed back its own money as a loan. If this prac-

tice is allowed to continue the finances of the board will rapidly become chaotic because a huge liability is being forced upon the board and It is submitted that the present policy is justified neither by conimon sense nor expediency.”