MONEY FOR HIGHWAYS.

New Zealand Herald, Volume LXVI, Issue 20365, 20 September 1929, Page 12

MONEY FOR HIGHWAYS.

THE CONSTRUCTION HIND.

ASSURANCE TO DEPUTATION.

PROVISION OF £200.000.

QUESTION OF PAYING INTEREST.

[BY TKIiEOUAPJI.—BPECIAII BEPOHTER.] WELLINGTON, Thursday

An assurance that there was no intention on tho part of tho Government to withhold from tho Main Highways Board this year, tho transfer to its construction fund of £200,00P from tho Public Works Fund was given by the Primo Minister, Sir Joseph Ward, to-day to a large deputation representing the North and South Island Motor Unions, automobile associations, progress and expansion leagues, chambers of commerce, and other local bodies.

Sir Joseph Ward said he would reconsider his original intention of charging interest on the £200,000, but made it clear that no interest would have to be paid on similar grants in the past. The Prime Minister insisted that he had never given any indication that the funds would be withheld.

Misleading Ideas Alleged

" I have listened to your representations with a great deal of interest," said tho Prime Minister, in his reply. " I have noticed that -one or two speakers have affirmed what I take decided exception to—misleading and unreliable statements that have been circulated deliberately in different parts of the country regarding my intentions in connection with tho transfer of the £200,000 from the Public Works fund to the construction fund of the Main Highways Board. These statements have been published before I have indicated at all .what it is that is proposed to be dono in connection with this all-important question. • t "I have not at any time, either in the Budget or in any other place, suggested one word that would allow anybody to infer that there was the least doubt about the £200,000 going to the board this year. One speaker here to-day went at; far as to repeat the statement, and to base bis arguments upon it. This statement was made without any authority of any kind, and I am bound, therefore, to assume that somebody has engineered it, either with a view to forcing the hand of the Government, or with the object of weakening it in different portions of the country." Two Millions to be Spoilt.

The Prime Minister declared that since the Government came into office it had gone with infinite pains into the whole question of motorist* and transport generally, and' wa3 at present engaged ill the preparation of legislation on the subject. " That legislation has not yet' seen the light of day," added Sir Joseph Ward. " When you come before me before the policy of the Government is made public and speak just as though the whole matter had been settled, you must recognise that you are barking up the wrong tree. lam just as concerned in the welfaro of motor associations, county councils and other local bodies as any man in New Zealand." Sir Joseph Ward procee4ed to refer to the responsibility he had in balancing the Budget, and announced that this year over £2,000,000 would be spent through the Highways Board entirely in connection with motorists. " That is the amount I am making provision for," he said.

Attitude o! Motorists.

Mention had been made of the original constitution of tho Highways Act, but surely the deputation did not suggest that other sections of the community should be made to go short of revenue while the motorists were left -alone." "Where would we end?" asked Sir Joseph. "We would end in bankruptcy. I want to say that I think it is a wrong attitude to assume that you must be inviolate and not touched from one year's end to the other."

The amount placed at the disposal of the Highways Board this year was infinitely greater than last year's amount. No additional burden had been placed on motorists. All that the board was asked to do was to pay interest on the grant of £200,000. Was not that a reasonable thing? Tho interest on that sum would amount to about £II,OOO a year. New Zealand was in a different position to-day from that of 12 months ago. Transport Legislation.

! "If you exerciso ordinary patienco and wait until the proposals of tho Government are submitted to Parliament you will bo in a position to Judge whether the motorists are being treated unfairly or not," said Sir Joseph. ''Wh6n the Government's proposals come before Parliament the fresh legislation dealing with the transport problems will be brought down at tho same time. We are not taking over from the Highways Board tho construction of roads in any way whatever. They will go on as they went on tho year before, but we are putting the wholo of the motoring organisations in a position which I hope and believe will bo reasonable and acceptable to ' those bodies. "Wo have associated with the Minister of Transport men from all portions of New Zealand representing every section, and they are unanimous upon the terms and conditions contained in the Motor Transport Bill, which, has not yet ieceived tho final affirmation of the Government. When it does, however, you will find that an honest effort has been mado to doal in a practical and commonEcnse way with tho motor transport problems of"Now Zealand/'

Early Decision to be Made.

Mr. F. C. Jones, president of tho North Island Motor Union, inquired whether, in brief, tho Prime Minister's reply meant that tho Highways Board would recoivo tho free grants of £200,000 and £35,000. "I want to make the statement, with a reservation, that that amount of money will bo provided this year," replied the Prime Minister. "Whether you will receive it without having to pay interest depends upon the decision that will have to be arrived at by mo during the course of tho next few days. If tho interest is to be paid, then you will havo to bear your share. If we havo to borrow the £200.000 then it is only right and proper that the rate of interest to be paid by ttio country should be paid by those who receive the grants." In reply to another question the Prime Minister made it cleai that it was not proposed to charge interest on grants that had boen made in tho past to the Highways Board.