ROADS IN AUSTRALIA.

New Zealand Herald, Volume LXVII, Issue 20628, 29 July 1930, Page 6

ROADS IN AUSTRALIA.

COMMONWEALTH'S LOAD.

£8,000,000 IN FOUR YEARS*

The Australian Government would ,welcome the opportunity of a release ilium tho Federal Aid Roads Agreement, by which it pays £2,000,000 annually to the States. Tho agreement, however, has. been ratified by all the Stato Parliaments, and it is unlikely that the States .would pass legislation releasing the .Commonwealth from its obligation. The Federal Ministry proposes to abandon its right of supervision of the federal Aid lioads fund, and release the States from tho obligation to contribute any particular sutn from their own funds. Tho Federal Aid Roads Act was passed by tho Bruce-Page Government in 1926, and in tho last four years £8,C00,000 has been paid by tho Commonwealth to the States for roads under conditions requiring the State Governments to contribute 15s for every £1 provided by the Commonwealth, which had the right < >f supervision of the expenditure 'of tho money. The fund from ,which the Commonwealth makes its payments is derived from a, duty of 2d a gallon on petrol, which was imposed in 1926.

A new agreement will have to bo submitted for ratification to the Federal Parliament to give effect to the proposal to free the States from their obligation to contribute 15s in tho £l. 11 is probable that when this is lining debated, attention will be directed to the unfairness of the Commonwealth having to cany the entire burden of providing funds for State roads.