NATIONAL ROAD BILL

Evening Star, Issue 23354, 25 August 1939, Page 14

NATIONAL ROAD BILL

ONE-THIRD FROM LOANS

MR HAMILTON'S CHALLENGE [From Our Parliamentary Uepokter.J WELLINGTON, August 24. The Government was accused by the Leader of the Opposition (Mr Hamilton) in the House of having failed to Jive up to the suggestion made in its first Public Works statement to finance highway construction entirely from revenue. He said the percentage of highway expenditure from loan money was 10.8 in 1934-35, compared with 29.0 in 1937-38. The percentage from unemployment taxation in 1934-35 was 19.1, and this figure had dropped to 6.7 in 1937-38. “ The percentage of road expenditure met by borrowing had more than doubled in two years after the Labour Government came into office," said Mr Hamilton. In two years the amount borrowed for roads bad risen from £.1,134,000 to £0,082,000. The figures for 1938-39 were not available,’ but since most forms of loan expenditure had increased since 1937-38, it was reasonable to assume that the expenditure on highways from loans would show an increase in that year also. More than one-third of the national road bill was now being met from loans. New Zealand would soon reach a stage where the motor taxation spent on roads would not pay interest charges, added Mr Hamilton. It was quite time the members of the Government who spoke of the debt burden put a stop to the activities of the Minister of Public Works. “ Why is the Minister now seeking borrowing authority for a further £3,200,000 for highways? ” inquired Mr Hamilton. “It is the largest sum ever asked in this House.” Drawing attention to the activity on roads all over New Zealand, Mr Hamilton said speedways were being built op a par with those in Germany. While the Minister of Public Works talked a lot about improving back-block roads, it was apparent that the bulk of the money to ho authorised for roads this year would be for the main highways..