HIGHWAYS FINANCE

New Zealand Herald, Volume LXIX, Issue 21325, 28 October 1932, Page 10

HIGHWAYS FINANCE

FUND TO BE RETAINED ABOLITION NOT FAVOURED GOVERNMENT TOLICY DEFINED "NO ADVANTAGE TO BE GAINED" [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Thursday The Government lias no intention of abolishing the Highways Fund and paying the proceeds of special motor taxation into the Consolidated Fund, as was recommended by the National Expenditure Cornmission,- according to an announcement made by the Prime Minister, the Rt. Hon. G. W. Forbes, when replying to-day to a deputation, that wafted upon him to protest against the commission's proposal. The deputation represented the New Zealand Farmers' Union, the North and South Island Motor Unions, and the New Zealand' Counties Association. The first speaker was Mr. M. H. Wynyard, who represented motorists on the Main Highways Board. He made it clear, however, that he had no authority to speak on behalf of the board, but that bis remarks were in support of the representations of the motor unions. Mr. Wynyard traced the history of the initiation of highways finance. The engineer to the Highways Board had reported that the highways were deteriorating to an extent at least of £200,000 a year. That should be borne in niind, for it was not ari economic proposition to allow the highways to deteriorate. Mr. A. E. Jul!, M.P., said the commission had not taken the trouble to obtain any information from any of those organisations whose duty it was to maintain the present system of motor taxation. It seemed that the commission had preconceived ideas and that it did not.want them disturbed by the evidence available. Replying to the deputation, Mr. Forbes said be fully recognised its representative character. Motorists had recognised the necessity for stability in public finance and had always been prepared to assist the Government. Sound public finance should be the first and foremost considera. tion. If the public finances crashed, other organisations would soon follow. Ihe interests of the country came fust,'and if it were necessary to break contracts, then they had to be broken. The Government had considered the recommendation of the commission and could not see that any advantage could be gained by its adoption. The Government felt that there would be a greater feeling of satisfaction if the fund were maintained as at present/. The fact of there being special funds had not been an embarrassment to the Government, for when the position had been placed before motorists, they had always recognised that public interests had to come first. The Government did riot intend to abolish the separate account of the Highways Fund and pay the money into the Consolidated Fund. (Applause.)