THE MAIN HIGHWAYS ACT

Manawatu Herald, Volume LI, Issue 4489, 9 August 1930, Page 3

THE MAIN HIGHWAYS ACT

INTERESTING ADDRESS BY MR

G. A. MONK,

‘The most interesting and illuminating address been given before the Foxton Lunch Club was delivered by Mr. G. A. Monk (Chairman of the Horowhemia. County Council and member of the. No. 9 Highways Council) on Thursday, when lie spoke on the subject of “The Main Highways Act.”

■Mr. J. K. Hornblow was in the chair and introduced the speaker.

Mr. Monk said that his reason for selecting the subject of the address was that he considered that the Main Highways Act. was perhaps the most misunderstood piece of legislation that had been placed on the Statute Book of recent years. The Act was first advocated in 191<* 'by the ‘Counties Association when the proposal was discussed at a conference. Following on that the President of the Association reported oil the Victorian Bonding scheme of Ansiralia : ti 1918, but this was not. applicable to New Zealand and representations were made to the Government for some Bill on the matter. The first Bill was submitted to the Counties Association in 1920 hut was turned down as unsuitable and in 1922 ai further Bill was introduced which with certain amendments, was accepted and the first Main Highways Act was placed on the Statute Book in October of that year.

REASON'S FOR. THE ACT. The reason for some Act to govern the highways work of this country was due to the alarming increase in local body taxation in this connection, said Mr. Monk. 1nM.914 local rates collected by all the counties in N.Z., less the Hospital r'ates, amounted to £606,477 but. by 1929 this figure had grown to £ 1,668,29 aor two and a half ■times as much and this notwithstanding the fact that the Highways Board spent £757,000 on maintenance and £936,000 on construction work. Subsequent amending Acts have been passed since the original Highways Act was placed on the Statute Book which have also testified to growth of this •undertaking, amending acts being passed in 1925, 1926, 1927 and 1928.

COMPOSITION OF BOARD. The Act provided for the declaration of highways throughout New Zealand and 7000 miles were declared main highways and 3000 subsidiary highways. The composition of the Main Highways Board was as follows: —Three Government representatives, two county representatives and one member representative of the motorists while an engineer from the Government was also appointed. The Government representatives were all from the Public Works Department and comprised the Engineer in Chief, the assistant engineer in chief and a member of the financial side of that Department. The Engineer in Chief (Mr. Pnrkert) was appointed chairman and while the speaker had the greatest confidence in Mr. Furkert’s ability as an engineer and the greatest respect for him personally, he did not think that it was a right thing that a man with such stupendous duties should hold down the position of chairman to that Board as it was impossible for him, especially with the Arapuni trouble ami the earthquake devastation in the South Island, to give that attention to the Board to which it was by reason of its importance, due.

DECLARATION OF HIGHWAY

DISTRICTS,

Touching on the provisions of the Act governing ttie declaration of highway districts, Air. Monk said that ten such districts were declared in the North Island and eight in the South Island. District Councils wore then set up in each district and the portion of the island in which Foxton was situated was located in the No. 9 District Council area which included, Alakara, Hutt, Horowhenua, Manawatu, Kairanga, Oroua, Kiwitea and Pohangiua Counties and extended, from Wellington to the Rangitikei River. The Board was given' power to declare these districts and Provisional District Councils met and advised :the Board concerning the declaration of highways in their particular areas. Nine representatives were elected in the No. 9 District representative of the various County Councils contained therein, eight of whom were chairmen of these bodies. In this manner the District Councils obtained the best information concerning the areas concerned. The Council however, was purely advisory. It considered the estimates of the various local bodies in connection with their construction or maintenance proposals afid advised the Board as to whether they should be earned out or not. ,

*mVNCIA L RiESIMtIIOTXON'S. Two years ago, said Mr. Monk, the 'financial side of the question did not concern the Board to any great extent as there were plenty of fluids. Last year, however, the position was acute. The South Island had a large amount of work to he undertaken and the estimates were nearly double the amount allocated by the Highways Board so that District Councils had to get busy and cut down the estimates in accordance with the amount available. Under the original Act the Board was to derive, its revenue from the duty imposed on tyres and other rubber goods imported into the country and the motor license fees for construction and maintenance wortk. A £3,000,000

loan was authorised for construction work which was to he lifted in sums from £200,000 to £IIOO,OOO per annum while clause 14, section A of the Act provided for £35.000 per annum out of the Consolidated fund and Clause 16 £200,000 annually from the. Public Works funds, amounts equivalent to the sums spent on roads and in construction work prior to the operation of the Board. The Government was now’, however, seeking to make the Board pay interest on the £200,000 and not- only that; but to make interest charges retrospective. If Ibis is going to happen then by 1936 the whole of the Highways Board's income would be absorbed in interest charges and it would have to cease to function. These interests charges were in addition to those connected with the £3,000,000 loan which the Board was paving. THE PETROL TAX.

Subsequent provisions were made to the Act for a Id tax on petrol, said Mr. Monk, which revenue went into the Highways Board’s funds. This was an excellent thing for. the Highways Board as at first it was able to subsidise only 10/- for £1 on maintenance while a £1 for £1 subsidy was the greatest amount available for construction work. It was under those conditions that the Holowhcnun County Council carried out its highways work. With the advent of the petrol fax, however, greater subsidies were available. £2 for £1 was granted for maintenance and £3 for £L for construction work.

DISTRIBUTION' OF FUNDS. The funds of the Highways Bottl'd were distributed between tlie North timl South islands on the Ini sis of tin! number of vehicles registered and duty paid in each island on the various importations. A great deal more work was carried out in initial stages in the North Island than in tlie South with the consequent result that, the South Island received the benefit of the greater subsidy owing to the operations of the petrol tax. In no case, except- in Southland, wn.s a subsidy lower than £3 for £1 paid. WORK IN THE ITOROWHENUA COUNTY.

Referring to I lie work carried out in the Horowlicnna ‘County, the speaker said that the Horowhenua County Council had realised that their road was a main arterial highway and had realised that its early construction was important. Estimates were prepared and carefully considered. They were at the time thought to be economical but subsequently they proved not so as costs increased enormously. They were able however to push ahead with a great deal of work ns money became available but they ultimately reached the stage when they found that they could not complete the work with the amount allocated them. We were then working under the old subsidy, said Mr. Monk, and I received the shock of my life when I attended a District. Council meeting in Palmerston N. about that time to hear the chairman submit a proposal for the spending of between £35,000 and £-10,000 around Palmerston North on which they were to obtain a subsidy of £3 for £l. It was on account of that that the Horowhenua County Council downed tools amt no work was carried ont for twelve months when the Highways Board agreed to subsidise the work £3 for £l. But even with that we are left with certain highways which we are unable to complete unless the Highways Board places the work on the free grant basis. This however does not apply lo the Wlhirokino section of the highway which would be completed this year if possible. Referring- to the free grant '.MV. Monk said that even if the Board undertook the completion of the Horowhenua work on this basis it would only have cost them £2 2/6 to the £1 which was much less than Hint already paid to the Manawalii, Kairanga or Oman Counties.

THE IHCTIWIAYS ACT GENERALLY.

Speaking of the Highways Act generally, the speaker said l-hat- he had no hesitation in saving that as lar as (County Councils were concerned it was well overdue but he felt that they would have to fight to keep it on the Statute Book and keep it operating' otherwise conditions would rapidly revert to what they were before its operation. Air. Monk also staled Dial unless some method of taxation other than the ipetrol tax could lie suggested the Highways Board would In* starved tor money. N.Z., he said, has not progressed to any great extent with its highways with regard to paving'. It had 10,000 miles to do and only a small proportion had been completed. Instead of stultifying the Highways Board it required all tin* assistance it could be given.

There was a certain stage in its existence which when once 4 i -' a_ ched marked the .decline of expenditure as .there was no doubt til all that pa veil highways roil need to a marked degree the maintenance cost. As an instance he quoted a case in the Horowhenua County where gravel roads were costing between £320 and £4OO per mile per annum to maintain againsl £7O or less per mile per annum for paved roads. INCREASE IN TRAFFIC.

Traffic was increasing very fast. In 1924 there were 65,000 motor vehicles registered' in X.Z. In 1929 there were 192,000. These figures, said Ihe speaker, spoke for themselves and went to show the necessity for the Highways Act and the maintenance of its revenue. THE 3d PETROL TAX.

The Counties Association had recommended the increasing of the petrol tax by 3d, said Mr. Monk, for tin* reason that it was considered that it would assist the outback county roads and roads other than those already declared highways or subsidiary highways. This was necessary as the cost to local governing- bodies was ever increasing. In 1922 such gravel roads cost £139 per mile per annum io maintain. Today they cost £350. The rural districts have reached the limit of endurance and unless something could be done lo assist them the position would become impossible. In the Counties Association opinion, onik-Ruled the speaker, those who used the roads should have to pay fin' lhem. Fifty per cent, of the users were those residing in rural • list riels and if they were not tirepared to pay for the roads by means of tin* petrol lax then they would have lo pay by local body rales. Tin* petrol tax was fair for llie man who did not use tile road did not have lo pay for it. 14 had been thought that the petrol lax would enable Hie Board to keep clear of (tie Consolidated Fund hut ii n fort mm I ely the treasury was now in such a had stale that the (lov iiiiment proposed while still handing over the money thus raised to also hand over a liability of £300,- (!()() which it itil ended to ash I lie Highways Board to pay out of petrol tax as well as interest on money which by Act in Parliament had been a gift to tin* Board. At the conclusion of his address Mr. Monk was accorded a hearty vole of thanks on the motion of Messrs F. A. Mason and M. F. Pcrrea u.