PETROL TAX

Gisborne Times, Volume LXVII, Issue 10476, 5 January 1928, Page 3

PETROL TAX

ALLOCATION OF REVENUE

, PROBABLE DIVISION

Details of the. probable allocation of revenue from the petrel tax were received from the Department of Public AVorks by the Cook County Council at the adjourned monthly meeting yesterday. Explanatory notes were appended to each division cf the total amount.

According to the letter, the allocation will probably he as follows : Eight per cent, of the total tax will he paid direct from the Consolidated Fund to the cities and larger boroughs on a population basis. '<

The Main Highways Board lias no control over sums to be distributed under this heading. The balance of 92 per cent, is to be paid into tiro Main Highways revenue account and will be distributed approximately as follows;.— Twenty four per cent, towards the maintenance of tbe present Main Highways system. This is to cover the estimated deficiency between the amounts derived from present sources of income and expenditure on the present Main Highways system in maintenance. Twenty-five per cent, on a suggested total of 3000 miles of additional Main Highways. The amount available under this heading will, in all probability, Insufficient only to pay a subsidy on the cost of maintenance of such, addition, al highways. The rate of subsidy can only be determined when the Main Highways to bo brought under this heading arc decided on and when the income derivable from the tax is definitely known.

Twelve and a-half per cent. fo» a sinking fund and interest to payoff loans raised under the Main Highway's Act in about 15 years. This is self-explanatory. Four nor cent, to the small Iroi oughs.

The proposal is that the continuations of Main Highways through boroughs with a population of under 6000 inhabitants will be declared ito be Main Highways and will receive the full benefits of the M.H. Act. This is estimated to cost £28,000 annually which equals 4 per cent, oi the estimated total funds. Twenty-five per cent, on Main Highways adjacent to the larger centres of population..

It is the intention that heavy traffic. roads -in. "counties near the larger centres of population shall be surfacetreated and, where circumstances justifv the expenditure, shall be metalled.