MAIN HIGHWAYS FINANCE.

Manawatu Standard, Volume L, Issue 221, 14 August 1930, Page 3

MAIN HIGHWAYS FINANCE.

QUESTION OF RESTRICTION. LOCAL BODIES CONCERNED. (Special to “Standard.”) FEILDING, Aug. 13. , Tlio probability of a restriction in the Highways Board subsidy on local body rates was referred to at to-day’s meeting of the Oroua County Council when a letter was received from Hon. J. G. Cobbc advising that the rate subsidy would be paid on the same basis as hitherto. . The chairman (Cr. A. Campbell) said the letter was the outcome of a telegram he had sent to Mr Cobbe enquiring if the subsidy on the rates would be paid in the future in view of the alterations proposed, when the Budget was issued. “From the county’s point of view the Budget proposals have been a matter of some concern to the engineer and myself,” the chairman continued; hence the telegram and the reply which has just been read. Satisfactory as far as it goes concerning the intention of the Government regarding the rate subsidy, the transference of such liability to the Main Highways Board will require careful watching, for amending highways legislation will be required and it will be the duty of our representative in Parliament to see that it will be mandatory for the Highways Board to pay such subsidies on the same basis- as; heretofore.

“Subsequent information, however, is not reassuring,” Cr Campbell went'on, “for the Premier has definitely stated that if the petrol tax does not go on? the alternative will be the withdrawal of the rate subsidy of £220,000 and: the grant of £35,000 from the Consolidated Fund and the £200,000 from the Public Works Fund will' not be available, with retrospective interest to be collected on the previous advances to the Main-Highways Fund of another £61,000 per annum, a total of approximately £516,000. It. will readily be seen this will have a serious effect on main highways .finance, and as I see the position, should the alternative be adopted, it is more than probable the present subsidy-on highways will be reviewed and I feel sure this will adversely affect county finance and the future usefulness of the Main Highways Board. While being in full sympathy with the principal of the road user contributing more to the maintenance and construction of roads, owing to the increasing burdens the advent of the motor has entailed on counties, the additional petrol tax as introduced will be of little or. no benefit to our county or its ratepayers by reduction of tlieir rates oi taking the burden of upkeep of their roads. The one thing that will be certain to them will be the increased petrol tax. ’ _ , „ The Main Highways Board was well overdue when it came into being. Even so in my opinion, it has been of real service to this and the counties of the Dominion. It appears it is the Government’s intention to thrust further financial burdens on that body, with the result that it will in time be starved out of existence, which must react on the counties. The recent Counties’ Conference recommended that the petrol tax be increased by.cSd per gallon for the purpose of assisting back country roads and all roads other than main and subsidiary highways,, in order to enable local bodies to meet the growing maintenance and . reconstruction costs demanded by present day motor traffic. Although it was stated that 50 per cent of the registered cars were rural owned, in the words of the president of the conference it was putting the saddle on the right horse. Little did that conference think that the Government would seize it with both hands to relieve the Consolidated Fund, and the overburdened ratepayer with his increased roads costs and hospital maintenance charges be left to stew. If the petrol tax is defeated and the Premier does as he has stated, it will be necessary for this county to review its estimates for the year s work, which would mean a serious curtailment of the labour employed, with consequent neglect of county roads, or the alternative of considering the striking of a supplementary rate to meet the position that must arise. “BACKBLOCK” ROADS. Discussing the matter, Cr. W. McLennan said it seemed to him that the council was going to pay the tax and not get as much out of it as it should, seeing that the Government proposed to spend the money on backblocks Green: Is the position then that if the petrol tax is not passed the highways subsidies will .not be The chairman: That is the position as I see it. . Cr. R. McDonald: The Highways Board can only pay its subsidy through the petrol tax, can’t it? • The chairman: Yes, and on that account our estimates have been severely cut down this year! The point that interests this county is wliat constitutes a backblock road. . , Cr. A. B. Shannon: We haven t got ai Tiie chairman ; That’s what I think. We’ve got to maintain our roads and if there’s going to be a curtailment ot the Highways Board subsidy we are going to be in difficulties. t Cr? Greenhow: Mr Cobbe’s telegram

makes it clear that we are going to get the subsidy. Cr. McDonald: Yes, hut what happens if the Highways Board doesn’t have enough money to go round? Are they going to “earmark” enough money to pay the rate subsidies out of the tax? Without further comment the action of the chairman in sending the telegram to Mr Cobbe was endorsed.