MAIN HIGHWAYS

Otago Daily Times, Issue 23219, 17 June 1937, Page 10

MAIN HIGHWAYS

THIS YEAR’S EXPENDITURE LARGER SHARE FOR SOUTH ISLAND The South Island is to receive this year a greater proportionate amount of Main Highways Board expenditure than the North Island. This statement was made by Mr C. J. Talbot, a member of the board, at the annual meeting of the No. 13 District Highways Council in Christchurch on Tuesday.

“The South Island is getting the big end of the stick,” Mr Talbot said. “ Usually the proportion of expenditure is 60 per cent, in the North Island to 40 per cent, in the South Island; but this year it is 57 or 58 per cent, to 43 per cent. The South Island is coming into its own to that extent.” The receipts of the board for the last year had been record amounts under all heads, except the tyre tax. The diminution in the amount from lyre tax, in spite of increased use of the roads, was a good sign It was caused not only by better duality tyres but by improved road surfaces. Still further increases were expected in the receipts from petrol tax. Eighty-one million gallons of petrol had been used in the last year. “ Expenditure has also gone up. Last year £2.390,000 was spent on maintenance, improvements, and renewals, an increase of £820,000 over the previous year. To spend that sum, about £850,000 had to be borrowed. It is against the policy of the board to borrow, because of the increase in overhead charges for interest and sinking fund. If we carry out our expenditure of £4,000,000 this year, practically £1,500,000 will have to be borrowed. The view of the Treasury was that so long as increasing revenue could meet the overhead charges the borrowing was justified. But a time might come when receipts might diminish. The present total expenditure on interest, sinking fund and other overhead charges was “ quite a big thing,” amounting to very nearly 24d out of every 6d received by the board from petrol tax. Borrowing had gone on consistently, except during depression times, when it had decreased considerably. “Additional highways cannot go on indefinitely,” said Mr Talbot, “ unless additional money is given to us—and that does not appear to be likely.” The board did not want local bodies to lose interest in the roads, and it was hoped that they would not reduce rates because the State had taken over highways. The board hoped that the local bodies would spend money on other roads, as the benefit of State highways was not distributed evenly over the whole of the Dominion. The board desired the full co-operation of the counties.