Roads Board To Plan Cuts In Estimates

Press, Volume CVI, Issue 31365, 10 May 1967, Page 20

Roads Board To Plan Cuts In Estimates

"The Press" Special Service

WELLINGTON, May 9.

The National Roads Board will meet in committee on May 17 to begin making cuts of at least 10 per cent in its 1967-68 budget.

The cuts, necessary after the mini-Budget last week, will reduce spending on road construction and maintenance by more than £3 million.

In December the board planned to spend £35.1 million in the financial year that began on April 1. Last week, however, the Minister of Finance (Mr Muldoon) said that from July 1 all revenue from licence and registration fees would go direct to general revenue, not to the Roads Board. He also announced an additional 4d a gallon tax on petrol.

As a result: The board will lose fees for the last nine months of the financial year which, it had estimated, would amount to about £2.8 million.

The new tax will dampen the demand for petrol, so reducing the £2B million in petrol tax that might

otherwise have gone to the board.

In addition, a balance expected to be £2 million on March 31 was only £1.5 million, causing a further cut of £500,000 in estimated revenue.

The secretary of the board, Mr C. N. Johnson, said yesterday the board had not known of the emergency measures when it estimated in December that motor revenue would rise only 5 per cent this year, compared with 7 per cent in previous years. Based On Trends

“The reduction was based solely on the economic trends at that time,” he said. “After these new measures new figures will have to be found.” Some authorities doubt if mctor revenue will now rise 2 per cent, if it rises at all. The present Roads Board budget for the year—which will have to be cut at least £3 million—is: State highways, £17.9 million; counties, £8.9 million; municipalities, £5.4 million; administration, £1.7 million; steel mill, Tongariro scheme, Harbour Bridge and

Lyttelton tunnel roads, £1.2 million; reserve, £1.4 million; planned balance, £3.4 million. Petrol Tax Petrol tax, which is added to heavy traffic dues, mileage tax on non-oil burning vehicles and tyre tax, to form “motor revenue,” was introduced in 1927. The duty then was 4d a gallon. It was increased to 6d in 1930 and 92 per cent was distributed to the highways fund and 8 per cent to larger boroughs. There were further increases of 2d in 1931, 2d in 1933 and 4d in 1939. These, along with a special foreign petrol surtax of 0.7 d, were le ied for general revenue and were not resbrved for roads.

The level of 14.7 d a gallon was reduced 2d in 1951 and the surtax, which now applied to all petrol, was cut to 0.6 d. From 1951 to 1953 the tax was 12.6 d a gallon, but it was increased 3d in November, 1953. Increase Held The “black” Budget of 1958 put petrol tax up to 27.75 d, of which 15.75 d was retained by the roads fund. In December, 1959, the surcharge was reduced to 4d a gallon and soon after to 2d a gallon. Later the remaining 2d was diverted to road funds. The tax remained at 17.75 d until last Thursday. Today each gallon of petrol carries a surcharge of 21.75 d of which 17.75 d is used for roads.