The Manawatu Daily Times Borrowing Your Own Money

Manawatu Times, Volume 60, Issue 200, 26 August 1935, Page 6

The Manawatu Daily Times Borrowing Your Own Money

The finances oJ! the Main Highways Board oftcr a romaikable illustration o'f budgetary manipulation, an examp e financial ingenuity that would bring envy to the heart ol Eothschilcl or a Pierpont Morgan.

Briefly stated the transaction is thus: During the depression years the Treasury had difficulty in raising sufficient revenue and so sought every possible means oi obtaining lusi funds. The Highways Board had certain revenues dedicated to itself. These the Treasury raided to such an extent that 11 board was left with insufficient funds to carry on its work, f tie Treasury thereupon loaned at interest to the board, a portion of the raided funds. Jn addition, the Treasury began to charge interest upon previous State grants to the Highways Construction Account.

As a result of this very neat work the Highways Board is now saddled with interest and redemption charges estimated to total £196,000 for the year ended March 01 last.

The Motor Union estimates that the charge is growing at such a rate that it will amount to £400,000 within six years. Very naturally the motor unions are strongly objecting to the procedure whereby “the road fund is being handed back its own money as a loan.” During periods oi: crisis btates are forced to strange devices!

Some years ago, realising the urgency of national policy, the motor unions agreed to the transfer, as a temporary measure, of £500,000 from the Highways Fund to the Consolidated Fund. Motor officials have shown the State every consideration; their demands to-day arc most reasonable and but bare justice would be given by the granting of their requests. .

Concisely stated, these are that motor taxation for revenue purposes should be abolished or at least greatly reduced and that the finances of the Highways Board should be restored to their proper condition.

Timber Trade Improves

The output of timber from the Dominion’s sawmills for the year ended March 31 last is assessed at 250,000,000 feet, and is the highest recorded for live years past. A gain ol 26 pci cent, is shown over the previous year and one of 62 per cent, above the output for 1932 that being the low point ot the depression.

A. considerable gain has yet to be made to. reach the high ib-ures of the days of the timber boom, 1925-26, when production mounted to 353,000,000 feet. 'With changes m construction methods such a high output may not be again required.

The Sawmillers’ Association, in its eighteenth annual report, referring to the past year states that the export trade has been of very great assistance to the industry, some 08,000,000 feet being sent overseas., Another feature of the returns, and one that provokes thought for the future, is that no less than M 000 000 feet of planted timber, almost wholly pinus insignis orradiata, was milled. The production of this timber has increased within a few years from but 7,000,000 feet a threefold increase. Within a quarter of a century our available natural forests will be largely depleted, and more and more we will be dependent upon planted areas.

The Sawmillers’ Association’s report forecasts a rising tendency in timber prices as present prices do not provide an adequate return on capital invested in the industry. The average price of timber has not as yet advanced to the extent warranted by the greatly increased demand. It would appeal that those contemplating building would be advised to act without delay.

The revival of the timber industry is definite evidence of a very material economic recovery. It is to be welcomed as evidence of such recovery and also on account of the material assistance it has given to the problem of re-employment.

Lighter-weight uniforms for the summer use of British postmen arc to bo supplied at an additional cost of £200,000 a year.

Representatives of tlic London Garden Cities and Town Planning Association were recently at Berlin studying German methods of building. e