FINANCE OF HIGHWAYS

Taranaki Daily News, 23 July 1931, Page 7

FINANCE OF HIGHWAYS

REPLY GIVEN MR. A. E. ANSELL

“HIS STATEMENTS MISLEADING.”

PRIME MINISTER’S EXPLANATION. By Telegraph.—Press Association. Wellington, July 22. The remarks of Mr. A. E. Ansell, M.P., at Eltham on Saturday in connection with main highways finance, said the Prime Minister, are such that, if the Speaker was correctly reported, might mislead people, especially farmers, if not corrected. In the first place, for the financial year recently completed the. revenues provided for the highways account were not only sufficient to cover all the charges thereon, but actually left a balance of £300,000 for transfer to the construction account. That the speaker was not du fait with his subject was clear When he said that the increased petrol tax went into the Consolidated Fund. This was not so, as a reference to the legislation would Clearly show. ■The increased tax went to the highways funds. Certain road costs and grants previously charged against the Consolidated Fund wore logically transfer red and charged against the additional revenue of 2d a gallon specially provied for the highways revenue fund. Mr. Ansell, in his attempt to cloud the issue, had suggested in effect that the farmer was not vitally interested in the balancing of the State Budget and that the change made by the Government was not in farmers’ interests “Let me say that the change was essential in the interests of the taxpayers of the Dominion, in which category the farmers plav no small part,” said Mr. Forbes. “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, estimated to produce in normal times £350,000 per annum, was intended for expenditure on backblock roads, and it was due to Mr. Ansell and some of his supporters that this material help to farmers was excluded from the legislation. “A further statement by Mr. Ansell as reported is equally incorrect and misleading. In this he remarked that the Government had withdrawn from the roads £516,000. As already pointed Out, the Government provided for the extra funds required to enable the highways. account to meet the highways charges—subsidies of £220,000, interest £61,000, grant £35.000, total £316,000. The balance of £200,000 represents loan funds for construction purposes which are not withdrawn at all, but are borrowed under the highways loan authorities'Tn lieu of under the Public Works loan authorities, as was formerly done.”