COST OF ROADS.

Putaruru Press, Volume VI, Issue 246, 19 July 1928, Page 4

COST OF ROADS.

NORTH ISLAND’S LOSS. Answer for Ratepayers. The difficulty of explaining the high amount of rates levied on ratepayers was mentioned by Cr. Bruce (Karapiro) at the last meeting of the Matamata County Council. Cr. Bruce contended that ratepayers were told that the big loan would reduce the general rate, yet the works committee had recommended increases. With a tax of 4d per gallon on petrol for the subsidiary roads the situation was a difficult one to explain." - Cr. Rollett agreed and said he was faced wirh the same difficulty. The Chairman : Yes, the position is difficult. When we decided on the big county loan we were under the impression that once that was spent, together with the Highways Board’s subsidy, we should be able to reduce the general rate. lam satisfied, however, in my own mind that we shall never be able to reduce it and that no relief can be expected until there is a change in the incidence of taxation. No matter how big a subsidy we get, traffic and other conditions have increased to such an extent that I see no prospect of relief until, as I have said, the incidence of taxation is altered.

Cr. Cox pointed out that the position was a simple one when properly understood. In the first place there had been an abnormal increase in motor traffic with a consequent big demand for good roads. Therefore rates had to be increased and would remain so increased until there was a rearrangement of the basis of subsidy. In the South Island roads were already in existence, and were cheaply made ; in consequence South Island ratepayers could manage with a 3d general .rate. On this sum they collected 100 per cent, subsidy. • In the North Island a 2d rate was necessary but the subsidy was only payable on a maximum of 3d in the £, and in consequence 60 per cent, of the rates received no subsidy. Some South Island counties were very small, and they struck the full rate in order to get the full subsidy, though the Waitald County Council had to put electric lights all over the place in order to spend its money. The whole of the North Island was losing heavily under the present arrangement. The Chairman : To be perfectly fair the Government should eliminate the maximum limit of 3d. Cr. Bruce closed the discussion by asking : “ What councillor would have guessed five years ago the number of cars there are running to-day ? ”