ROADS SUBSIDY

Hokitika Guardian, 25 August 1931, Page 5

ROADS SUBSIDY

AN INCREASE. (By Telegraph—Per Press Association jj WELLINGTON, August 24. Local authorities’ finance will be materially assisted by the decision of the Main Highways Board to increase the maintenance subsidy on roads. Following a conference with Mr F. W. Furkett, chairman of the board, the Prime Minister stated that the-board would increase the.,; maintenance subsidy to £3 for £l. compared with the present £2 for £l. This had been decided on on account' of the difficulties, of local bodies in collecting rates and the realisation that roads must not be al*\ lowed to go back. The-financial shortage had meant that local authorities had been unable to make their usual contributions towards maintenance, this resulting ’in a decreased subsidy from the board as the latter is based on local contributions. One compensating feature was (the obvious decrease in petrol consumption indicating less wear on the roads. Nevertheless, it wa s essential to keep up the maintenance . standard by increasing the board’s subsidy as indicated. There were special cases where the subsidy had been £3 to £1 and even £4 to £l, and in all these the proportion would be increased in line with the general subsidy increase.