RAID ON FUNDS

Hawera Star, Volume LIV, 23 August 1935, Page 6

RAID ON FUNDS

MAYS REVENUE President o! Motor Union Criticises the Government “PILLAGED” MONEY REVERSION TO BAD OLD DAYS (By Telegraph—i Tess Association.} NEW PLYMOUTH, To-day. 'Hie annual conference of the North Island Motor Union opened this morning, the president (Mr W. A. OCallaghan, Hawera) presiding over 30 delegates, also South Island Union representatives. An official welcome was extended by the Mayor, Mr E. R. O. Gihnour.

The president, in his address, remarked on the substantial membership increase. The total at present was 31,590, an increase of 3270 over last year..

Referring to main highway finance, the president criticised the Government methods of raiding the funds. The annual sum charged to the Highways Board for interest was steadily growing, as apprehended, the raids having left the board’s construction account short of money. The Government made good the shortage by handing back to the board money just taken away, but as a loan at interest with a redemption fund clause attached. Then an unjustifiable charging of interest on past free grants went on, and the net result of this policy was that whereas the revenue account of the board was charged under £IOO,OOO for interest and sinking fund during the year ended March, 1930, it could safely he stated that the current year’s charges would be over £250,000. “I lay the strongest possible emphasis on this considered statement, that if the present policy continues unchecked the Main Highways' Board will in six years’ time be paying r *500,000 to the State as interest and sinking fund on its pillaged funds,” added Mr O’Callaghan. “The effect of the Government first taking the highways money into the consolidated fund is that the revenue is thereby swelled when the same moneys are handed hack to the board as

a loan. The budgetary position iis not adversely affected, but the finances of the Main Highways Board are cumulatively prejudicially affected by this budgetary manipulation. For some years the board functioned well, but lately there has been a tendency for the Government to revert to the bad old days of political patronage, and interference in main road expenditure is becoming manifest. The main highways scheme was designed scientifically to cop*? with the national reading prriMem, and suitable motor taxes were imposed to provide funds wherewith the board eould function, not to provide money to be parcelled out to. electorates and favoured sections of the people at the will of Cabinet.”

Referring to taxation, the president said: “I feel the unfairness of the taxation legislation jfnstifi.es me tin directing public attention to the faet L hat the Income Tax Department is now claiming income tax from such organisations as Automobile associations. A tax was demanded on all income other than subscriptions, and scant allowance is permitted for the cost of earning that income, nor is any regard had to the fact that any such income derived from within the circle of its own membership. Even stafF provident funds have been assessed, thereby depleting the savings of individual members of the staff which they had been hoping to accumulate for an ultimate retirement payment. .Taxation is never a pleasant operation, but in the case of non-trad-ing concerns I see no justification whatever for the rapacity of the taxgatherer.