SUBSIDY FOR ROADING

Press, Volume XCVII, Issue 28540, 20 March 1958, Page 12

SUBSIDY FOR ROADING

Municipalities Seek Change

(New Zealand Press Association) WELLINGTON, March 19.

Municipalities were not receiving a fair share of monies from the National ‘Roads Fund, the Royal Commission on Local Authority Finance was told today. ‘‘There is no doubt that the whole system requires overhauling and that a thorough examination is called for,’’ said Mr C. L. Bishop, secretary of the Municipal Association of New Zealand. “The allocation of the subsidy of 8s in the £ on general rates has no real relationship to reading requirements or reading expenditure.

“The general rate is arrived at by the over-all estimated money required for the various work and services of the counties, many of which are in no way related to reading. Some of the larger items of expenditure are in respect of capital items. The system is based on the ability to pay and favours the counties with substantial revenue potential as against the less favourably situated counties. It is in some of the less fertile and less productive areas that the greatest help is required for reading purposes. “Most Unsatisfactory” “The present subsidy to counties on main highways is a most unsatisfactory feature of distribution of Roads Board funds. Double subsidies on the same monies were never contemplated when the legislation was enacted.” Mr Bishop said.

“The fact that counties have been able to show a reduction in loan indebtedness points to the fact that a great deal of capital expenditure is being made from the rate revenue, which is carrying the national roads subsidy Some of the counties are debt free and have substantial cash reserves.

“While we have no desire to divert a fair and proper share of the' National Roads Fund revenue from county roads, we do contend that the whole system of subsidies should be reviewed in order to assure a reasonable share going to municipalities.” said Mr Bishop. The association recommended that a new system of subsidies be introduced and that it be related to expenditure; that the subsidy to all reading authorities be such that it would meet at least one half the cost of all reading costs of local authorities and thus relieve the burden upon the ratepayers; that if necessary provision be made for local authorities to levy separate rates for reading purposes and to credit these to a special reading account against which roading expenditure would be charged and the National Roads Fund subsidies credited.

Membership Rising.—The membership of the Public 'ervice Association continues to grow, ahe latest figures, as at uanuary 15. 1958. show that the membership stands at 34,540, compared with 04,153 in October, 1957.