HIGHWAYS FINANCE.

Thames Star, Volume LXIII, Issue 17678, 31 August 1929, Page 5

HIGHWAYS FINANCE.

THE £200,000 TO BE PAID.

BUT INTEREST CHARGEABLE.

STATEMENT BY PREMIER. (By Telegraph—Own Correspondent.) WELLINGTON, Aug. 31. The position in regard to highways finance was made clear by the Prime Minister in the House yesterday. Sir Joseph Ward said it was difficult to understand how the impression could have been created that the Government intended to deprive the highways fund of £235,000. The sections of the 1922 Act merely expressed a policy for tlm time being and sincethat date considerable changes in highway taxation and finance had occurred which undoubtedly affected the original position. In 1922 the highways fund had little revenue from the taxation, but it was now in receipt of about £1,250,000 and was thus a, revenue account and should com© within the category of all public accounts in receipt of revenue. “The £200,000 is provided for the board but we have to borrow and having to do so we have to pay interest and having to pay interest we expect the Highways Board to pay interest too.” said Sir Joseph Ward.' “No hoard could expect anything fairer than that, so that any misapprehension regarding that £200,000 will no longer exist after this statement.

Mr. T). Jones (Mid Canterhurv) : Will the £200.000 he paid? Sir Joseph Ward: Yes, it will he paid, hut wlia-t we want is interest upon it.

Sir Joseph added that suggestions had been made in the South Island that as the result of these adjustments subsidies and grants for various local body works had been refused or curtailed. “I can assure the House these suggestions are quite incorrect as the matters referred to are wholly questions - of policy as between the Highways Board and the local authorities concerned 'and they are not affected by these adjustments.”