ROADING COSTS.

Hawera Star, Volume XLVII, 19 December 1927, Page 4

ROADING COSTS.

RAPID INCREASE OF RATES

IMPOSITION OF PETROL TAX

EXPLANATION OF PRIME

MINISTER

Speaking at the opening of the Mokau Bridge on Saturday and at the luncheon which followed, the Prime Minister (the Rt. Hon. J. G. Coates) referred to tlie great increase of recent years in reading costs and to the necessity of maintaining the country roads. Figures were quoted in justification of the imposition of the petrol tax as a means of relieving the overburdened ratepayers. One phase which was considered to be next in importance to the provision of main roads was to get feeder roads, said Mr. Coates. That had been and was a mighty task, but was businesslike and sensible. There were many who thought it might -strain the resources of the. country, but be did not think so, though he added that, just at the moment, he might be a little unpopular. They must give the settlers of the backblooks access, and this would not be possible if the settlers had to pav for it themselves. Farming was tlie staple industry of the country, and costs already on rural interests' were heavy and getting heavier. It- was his duty and that of every Minister to see how they could lighten the load and at the -same time give the farmer means to make a success of his industry. The prosperity of all in the city, whatever their calling, was wrapped up in the -success of the man on the land. Anything that might be- fictitious and threatened the interests of the man on tne land was immediately refieeted by hard times and economic pressure in tne towns. To the people of the land, however, be would say that while it was all very well to go round talking of the tariffs, they must remember that there were about 250,00(1 souls in the city dependent on the industries, and from the advice given the Government, unless some protection from outside coinpetition was given, they would be left in such a position that they could not exist. It was therefore only a. oommonsense proposition for the farmers to think of the people in the cities, just as the people- in the cities -should think of the farmer. Their interests met at some point, though it could be said definitely that unless the rural interests and primary producers were encouraged and assisted the- rest of the community in the cities would have an economic struggle. Continuing, Mr. Coates urged his hearers to “keep their pecker up,” for the future was’ bright. They needed to be careful, but could look to the future with confidence. Wool, lamb, butter and eheese were making good prices, though pigs were not quite so good. They had, however, to take the good with the- bad and -stick to it. Those who did stick to their occupations and industries, despite depressions and hard times, would come out right. He assured them that there were better times ahead.

HIGHWAY EXPENDITURE. Speaking at the luncheon, the Prime Minister said that the demands on the Highways Board to the end of March, 1926, amounted to £185,000, and last year to £276,0CX). In other words, the Highways Board, with the finance at its disposal, was unable to meet the demands of local bodies only. The maintenance of the roads, which had cost £sl per mile in 1925, had increased to £75 per mile in 1925, and cost £sl per mile in 1924, had indirect ratio to the increase in the motor cars imported into the country. They were faced with the difficulty, too, that all rates levied by local bodies were a charge that went on to the land, and must therefore be watched very seriou-siy, for once they got the costs of the land beyond its producing capacity they were going to have ]>eople go'off the land and drift to the cities, and they must take means to prevent anything like, that happening. No one would argue that primary production was not the stability of the country and its wealth, but just as they piled up costs by ways of loans, rates, etc., on the land, so they would be deteriorating the value of te land, restricting the value of the- people and jeopardising the very asset they depended upon. Mr. Coates went on to quote figures showing how the rates had increased. He pointed out that in 1907 the population of counties was 455,000, and the total rate amounted to £416,000, or .91 per cent. In 1911 the population was 50,000 and the rate £580,000, or 1.17 per cent. In 1916 the population had increased to 501,000, but the rate to 1.81 per cent. Then the after-war period, which was coincident- with a period of borrowing, set in, local bodies being determined to get road.s, at whatever cost. That had led to a lot of trouble, and had led to the Government setting up the Local Government Loans- Board to supervise borrowing. In 1921, therefore, the population was 530,000, and the rates 2.78 per cent. In 1923 the population was 536,000 and the rate 3.06 per cent, whilst in 1926 the population was 552,000 and the rate 3.40 per cent. Thus in each decade the rate had doubled itself. ROAD USERS TO CONTRIBUTE, There were 6400 miles of main highways and 3000 miles of secondary highways to he declared. They had tried to capitalise these roads, and had valued them at £15,000,000. This gave them liabilities- annually of in to rest £750,000 maintenance £1,000,000, half per cent repayment £75,000, a total of £1,825,000. To meet that annual charge, for the roads must be kept up to a- standard so that the public interests would not lie- jeopardised, the- petrol tax had been introduced and would realise £930,000, leaving a deficiency of £896,000. As sensible men they could not allow the public interests, to be jeopardised, and as the increasing maintenance was directly attributable to the increase in motors, why not let them contribute? Ho had therefore placed a tax of 4d per gallon on petrol. It was a. swinging tax, but on the principle of the user paying for the road to save- the producer. It- was vital from a business point, of view, but more vital in protecting the, ratepayers. The Highways Board, too, was being instructed to- prepare a scheme which would assist counties and boroughs with under 6000 population by having 3000 miles of road declared secondary highways, which would bear a subsidy. This would have the effect of steadying up the costs that were being carried back to the- land, and so relieve the ratepayers to a certain extent. In his opinion, the- legislation was overdue.