HIGHWAYS FINANCE.

New Zealand Herald, Volume LXVI, Issue 20332, 13 August 1929, Page 10

HIGHWAYS FINANCE.

THE CONSTRUCTION FUND.

SUM OF £350,000 BORROWED

QUESTION OF PUBLIC WORKS AID

Representations were made to the Prime Minister on July 26 by a deputation representing tho North and South Island Motcr Unions urging that the Government should .reconsider its decision to suspend the annual transfer of £200.000 from the Public Works Fund to the Main Highways Construction Fund. Sir Joseph Ward merely undertook to keep the representations of the o'eputation in mind. The accounts for the quarter ended June 30 show that £250,000 has been placed in the construction fund, representing tho proceeds of debentures and inscribed stock, while £IOO.OOO has been provided by temporary transfers from other accounts. It was also stated recently by the chairman of the board that since June 30, £400,000 had been transferred from the revenue to the construction fund. The balance in the latter at June 50, according to the gazetted accounts, was £224,318. Loans iaised previously for the construction fund amount to £830,000, comprising £500.000 in 1925-26, £IOO.OOO in 1926-27, £50,000 in 1927-28 and £230,000 last year. Transfers from the Public Works Fund in the five years since the inception of tlie scheme total £1.026,000; in addition, £650,000 were transferred in the last two years from the revenue fund. The appropriation of £200,000 from the Public Works Fund was omitted in 1925-26, but in the following year £400,000 was provided. This was evidently the result of the report by the Auditor-General in 1926, in which he stated"Section 16 (b) of tho Main Highways Act, 1922, provides that there shall be credited to the main highways construction fund all moneys appropriated by Parliament out of the Public Works Fund for tho purposes of main highways, being not less in any year than the sum of £200.000 (this clause is italicised in the original report]. No moneys were credited in terms of this section during the year ended March 31, 1926, as, owing apparently to an oversight, no moneys were appropriated from the Public Works Fund for the purpose. . . It is understood that the matter will be adjusted by taking an appropriation during the current financial year sufficient to cover the contributions for the years 1925-26 and 1926-27."

This adjustment was made hv voting £400,000 in the 1926 Public Works Estimates, the Government then evidently agreeing with the Auditor-General that the legislation on the subject is mandator}'.