HIGHWAY BOARD.

Hawera Star, Volume XLIX, 31 August 1929, Page 9

HIGHWAY BOARD.

POSITION EXPLAINED.

(By Telegraph —Special to the Stir.) WELLINGTON. Aug. 30,

The position in regard ito highways finance was made clear by the Prime Minister in the House of Representa-tives'-to-day. Sir J-osepli Ward said that it was difficult to understand how the impression could .have been created that the Government intended to deprive the highways fund of £235,000. The sections of the 1922 Act merely expressed a, policy for the time being, and since that date considerable changes in highway taxation and finance had occurred which undoubtedly affected the original position. In 1922 the highways fund had little revenue from taxation, but it was now in receipt of about £1,250,000, and was thus a revenue account, and should come within the category of ,ail! public accounts in receipt off revenue. The £200,000 is provided for the board, but we have to borrow, and having to do so, ■we have to pay interest, and having to pay interest we expect the Highways Board to pay interest, too. Sir Joseph Ward said that no board could expect anything fairer than that, so that, any .misapprehension regarding that £200,000 will no longer exist after this statement.

■Mr Jones: Will the £200,000 be paid? Sir Joseph: Yes, .it will be paid; but what we want is interest upon it. He added 'that suggestions' had been made in the South Island that as a result of the ad justurents, subsidies and grants for various l local body works had been 'refused or curtailed. "I can assure the House that these suggestions are quite incorrect, as the matters referred to .arc wholly a question of policy as between the Highways 1 Board and the local authorities concerned, and they are not affected by these adjustments,’’ said Sir Joseph.