HIGHWAYS FINANCE

Manawatu Standard, Volume LI, Issue 197, 22 July 1931, Page 2

HIGHWAYS FINANCE

3.30 P.M. EDITION

PREMIER REPLIES TO STATEMENT. Per Press Association. AVELLiNUiUN, July 22. “Tho remarks Mr Ansell, M.P., made at Eltliam last Saturday in connection with tlie main highways finance,” said tlie Prime Minister today, •’are such that might mislead people, especially farmers, if not corrected.” In the first place, tor the financial year x-ecently completed, the revenues provided lor the highways account were not only sufficient to cover all charges thereon, but actually left a balance of £300,U00 for transier to the construction account. “That the speaker was not au fait with his subject was quite clear when he said that the increased petrol tax went into the Consolidated Fund. Such was not the case as reference to the legislation will clearly show that tho increased tax went to the highways funds. Certain road costs and grants previously charged against the Consolidated Fund were logically transferred and charged against tho additional revenue of 2d_ a gallon specially provided for the highways revenue find. “Mr Ansell, in his attempt to cloud the issue, suggests in effect that the farmer is not vitally interested in the balancing of the State Budget, and that the charge made by the Government was not in the farmers’ interests. Let me say that the change was essential in the interests of tlie taxpayers of tho Dominion, in which category tho farmers play no small part. The original proposal introduced by the Government and explained in the Budget provided for an additional tax of 3d a gallon, of which Id a gallon was estimated to produce in normal times £350,000 per annum, which was intended for expenditure on the backblock roads, and it was due to Mr Ansell and some of his supporters that this material help to the farmers was excluded from the legislation. “A further statement by Mr Ansell, as reported, is equally incorrect and misleading, wherein he remarked that the Government had withdrawn from the roads £516,000. As already pointed out, the Government provided for tho extra funds required- to enable the highways account to meet the highways charges, viz., subsidies, £220.000; interest. £61,000; grant, £35,000; total, £316,000. The balance of £200,000 represents the loan funds for construction purposes, which are not withdrawn at all, but are borrowed under the highways loan authorities in lieu of under the public works loan authorities, as was formerly done.” The remarks ef Mr Ansell were not telegraphed through the Press As j sociation.