TREMENDOUS PROBLEM

Manawatu Standard, Volume LXV, Issue 73, 23 February 1945, Page 5

TREMENDOUS PROBLEM

RECONDITIONING OF ROADS

(Press Assn.) WELLINGTON, Feb. 22. With the colossal reconditioning of road costs looming ahead for several years sufficient financial help must lie accorded at once to the Main Highways Board in order to cope with one of'the biggest problems in the history of our reading system, said the New Zealand Counties’ Association in evidence before the Parliamentary Committee on Local Government. 'I lie association made the following recommendations :

That a competent tribunal be set up to malic a full investigation into the hoard’s finances with a view to rectifying the unsatisfactory position as .soon as possible. That the whole of the proceeds of the motor spirits tax be paid into the Main Highways Account. That in lieu of the present subsidy paid to county councils, based on the amount of rates collected, a subsidy of £ for £ ho paid on the expenditure on roads other than State and main highways. The opinion was expressed that it was grossly unfair that any of the original road improvement tax should he diverted to the general coffers of the country, thus lightening the taxation burden of general taxpayers. The original intention of applying all motor spirits taxation to road improvements had unfortunately been ignored by successive Governments. Raids on motor spirits taxation to strengthen the Consolidated Fund had increased from £3300 in 1930 to £3,410,000 in 1941, with* a reduction due to increased petrol imports to £2,175,000 in 1943. In .Tune, 1941, the Government had prohibited the publication of motor spirits imports and the total amount of petrol tax so that definite figures could not be quoted, but it was understood that the total motor spirits tax collected since first imposed to the end of 1943 approximated £45,677,000, of which about £23,675,000 had been retained in the Consolidated Fund.