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H. —40.

It is estimated that the general increase in motor traffic 011 the whole of the national roading system has been about 8 per cent, since 1937-38. The whole of this increase occurred during 1938-39, but, owing to curtailment of use during the latter part of 1939—40, there has been no further increase for the whole year, although individual months show very considerable fluctuation in use. Over the whole year there has been a very slight falling off in use since the preceding year, although during the first six months the petrol figures show that there was a further increase of more than 10 per cent, over the corresponding period of 1938-39. No separate figures are available for the different systems, which together comprise the national roading system. C. ROAD FINANCE. (1) DOMINION'S ROAD BILL, 1935-39. The Department has investigated the numerous statistical data available from official sources and has analysed and classified them in order to show approximately what the roads, streets, and bridges are costing under the headings- of construction, maintenance, and loan charges. The classification of the roads into main highways, urban roads and streets, and other roads has been carried out, as each class of road or street has differing problems attached to it. This classification has involved a certain amount of estimation, as also have certain aspects of the figures for the whole road bill. Any estimations have been made on a conservative basis, and the figures are sufficiently close to actual fact to form a basis for reliable broad conclusions. The following table shows the expenditure for the three years 1936-37 to 1938-39 under the headings of "Construction," "Maintenance," and "Interest and sinking-fund charges":—

Of the total figure of £12,933,000 for 1938-39, £6,000,000 was spent on main highways, £2,300,000 on urban roads and streets, and £4,600,000 on other roads. The comparative figures for the previous year were—main highways, £4,700,000 ; urban roads and streets, £2,000,000, and other roads, £3,900,000. The expenditure on main highways was made up of construction, £3,330,000 ; maintenance, £1,950,000; and sinking-fund and interest charges, £730,000. On urban roads and streets £1,300,000 was spent on construction, £450,000 on maintenance, and £570,000 in interest and sinking-fund charges. With other roads construction totalled £2,030,000, maintenance £1,300,000, and interest and sinking-fund charges, £1,250,000. Sources op Moneys Spent on Eoad Bii.l, 1936-37 to 1938-39. The sources of the moneys spent on roads for the three years 1936-37 to 1938-39 are set out hereunder:—

Loan moneys spent 011 roads show an increase of £1,160,000 on 1937-38, while moneys from the Employment Promotion Fund for the same purpose increased by nearly £870,000. Moneys spent from other sources show only a very slight increase.

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- - - — - ■ ■ ■ I —— ———— ——. Year. Maintenance. Construction. T uteres tarn I Sinking- Total fund Charges. , _____ ? ■ , _ £ £ £ £ 1936-37 .. .. 2,777,099 4,004,859 2,226,742 9,008,700 1937-38 .. .. 3,211,188 5,053,326 2,358,584 10,623,098 1938-39 .. .. 3,711,737 6,665,941 2,555,292 12,932,970

UnemployYear. Loan Local ment or General Motor T , Moneys. Rates. Employment Taxation. Taxation. Taxation. Main Highways. £ £ £ £ £ £ 1936-37 .. .. .. 892,274 517,507 5,662 169,239 1,958,919 3,543,601 1937-38.. .. .. 1,708,635 448,949 97,864 213,299 2,222,301 4,691,048 1938-39 2,739,751 451,737 297,531 233,098 2,297,072 6,019,189 Urban Roads. 1936-37 .. .. .. 199,783 1,059,920 330,156 .. 346,457 1,936,316 1937-38 203,827 1,097,237 336,140 .. 389,110 2,026,314 1938-39.. .. .. 157,429 1,077,607 705,807 .. 393,051 2,333,894 Other Roads. 1936-37.. .. .. 939,714 916,181 357,220 1,017,082 298,586 3,528,783 1937-38 .. - .. 1,169,128 1,027,709 276,695 1,101,369 330,835 3,905,736 1938-39 .. .. .. 1,350,322 1,168,289 554,242 1,185,080 321,954 4,579,887