ROAD SUBSIDY WITHHELD

Press, Volume XC, Issue 27400, 13 July 1954, Page 10

ROAD SUBSIDY WITHHELD

Final Payment Under Highways Act ALL LOCAL BODIES AFFECTED A flaw in the legislation setting up the National Roads Board is depriving all local authorities in New Zealand of the payment of subsidy for the final quarter of last financial year under the Main Highways Act. The amount being withheld, from the Christchurch City Council is about £21,000. Last year the council estimated that its proportion of heavy traffic fees and motor spirits tax would he £74,000, but by the end of the financial year two quarters payments were in arrears and the council valued that asset at £42,000. Half that sum has since failed to jreach the council, the finance committee of which yesterday discussed the situation. “When the new National Roads Board was set up, the last quarter’s payments under the old arrangement had not been made and the board now says it has no authority to pay the .amount,” said Cr. T. H. McCombs (chairman of the finance committee) after the meeting. “All other local authorities in New Zealand are in the same position as the City Council and it is so obvious that the board will have to make the payment and that the Government .will have to validate it by he said, “Every local body budgeted last year to receive the payment for the full year and it has been spent. “They cannot get away with that one,” concluded Cr. McCombs. “There was a flaw in the Roads Board legislation and it will have to be rectified.”