Mr Watt Gives Reasons For New Roads Bill

Press, Volume XCVIII, Issue 29004, 18 September 1959, Page 15

Mr Watt Gives Reasons For New Roads Bill

(New Zealana Press Association) WELLINGTON, September 17. The division of revenue derived from motor taxation which the National Roads Board proposes to spend next year on road works under the changed basis of subsidy set out in the National Roads Amendment Bill now before Parliament is as follows: Not less than 28 per cent, to roads administered by counties. Not less than 14 per cent, to roads administered by municipalities. Not less than 53 per cent, to State highways. Up to 5 per cent, to be reserved for allocation as the need arises.

These figures were announced today by the Minister of Works (Mr Watt), who is also chairman of the Roads Board, after a conference with members of the executive of the Counties’ Association, who waited on him to discuss the application of the provisions in the bill which directly affect the counties.

Mr Watt explained to the county representatives that the bill sought to correct anomalies arising out of the existing legislation, and, in particular, to ensure that roading money might be spent where the needs could be shown ’ to be greatest. By abolishing the class of road known as main highways and making some of these wholly financed from the board’s revenues and reverting others to complete local authority control, the bill eliminated the situation which had arisen where local authorities willing to spend money on main highways, had been restricted from doing so because the funds available to the board for this class of road were insufficient to match local funds, said Mr Watt.

Under the provisions of the bill local bodies would be free to spend their revenues and their subsidies on those local roads — including the previously listed main highways. Those roads which were previously main highways and which now became State highways in the new declarations, would be left under local authority control if this was desired by the local authorities, and thus employment of county staff and county machinery would be assured. Allocation of Revenue

An important provision of the bill was that relating to allocation of motor revenue, Mr Watt said. “This provides that the Roads Board shall determine the percentages of its revenue which will be allotted to counties, to municipalities, and to State highways and shall make these known to district roads councils and local authorities.” The county representatives had complained that 28 per cent, of motor revenues was less than they had enjoyed in recent years but Mr Watt emphasised that a substantial proportion of the unallotted 5 per cent. (£1.000.000) must inevitably go to counties, and that the 28 per cent, was an absolute minimum figure. He agreed that the bill improved the financial position of municipalities in general, by assuring them an increased share of revenue of about £600.000. The counties. Mr Watt said, were fearful that the bill implied

a loss of autonomy and an increase in bureaucratic control. These fears largely arose from the requirement in the bill that local authorities should submit estimates of their intended spending on roading, and from clauses giving the board the right to approve subsidies and to influence standards of work. Expenditure Forecasts Mr Watt pointed out that the need for forecasts of expenditure was inherent in any system in which a subsidy was based on actual expenditure. “This was foreseen by the Royal Commission on Local Authority Finance and is quite unavoidable," he said.

The board had had the experience of seeing unnecessary works constructed partly from its revenues, said Mr Watt “A responsible board must have the right to control the type of works and standard of work done out of its revenues. At the same time, the board has no wish to interfere with local government control of works, and the very i minimum of control is intended,” he said. The Roads Board was a representative board and could be relied on to exercise its authority with discretion. Effect on Administration Mr Watt said he wanted to see. the board less concerned with a lot of detail and to place greater responsibility for detail planning on to district roads councils and local authorities. The whole success of the board’s administration depended on its ability to deal fairly with roading districts and it was essential that local authorities should be able to trust the board. Mr Watt emphasised that the amendment was to enable the board to promote roading where the need was greatest and to use local advice and judgment to the | maximum possible extent. It greatly increased the responsibility and authority of district roads councils. Mr Watt agreed to have a committee of the Counties' Association executive meet the Director of Roading and his staff to discuss the bill, suggest any imorovements. and in particular to help in the setting up and simplification of administrative procedure.