DISTRIBUTION OF PETROL TAX

Shannon News, 23 December 1927, Page 3

DISTRIBUTION OF PETROL TAX

PROPOSALS BY HIGHWAYS BOARD HELP FOR SMALL ' BOROUGHS. An outline of the Government's proposals respecting the allocation of the revenue from the petrol tax was contained in a letter from the Main Highways Board, received at the Levin Borough Council meeting on Monday night.'" The-Board stated that a number of local authorities appeared to have gained the impression that, because of the introduction of dhe petrol lax, the Board was in a position to grant increases in many cases towards the, cost of constructing, re-construct-ing and maintaining the present highway system of approximately (5000 m les. ' Such, • however, was not the case. For general information it was

sfatvd that the allocation of the revenue derived from the petrol tax would be approximately on lines as follows: Eight per cent, of the total tax will be paid direct from the Consolidated Fund to the cities and larger boroughs on a population basis. The Board has no control over sums to be distributed under this heading".

The balance of 92 per cent, is to be paid ro the Main Highways Revenue Account, and will be distributed approximately as follows:

Twenty-four per cent, towards the maintenance of the present Main Highways system. This is to cover the estimated deficiency between the amounts derived from present sources of income and the expenditure on the present Main Highways system on maintenance.

'twenty-live per cent, on a suggested total' of 3000 miles of additional Main Highways. The amount available under th's heading will in all probability be sufficient only to pay a subsidy on the cost of maintenance of such additional Main Highways. The rate of subsidy available! can only be determined'when the Main Highways to be brought under this heading are decided on and when the income derivable from the petrol tax is definitely known. Twelve and a-half per cent, for sinking fund and interest to pay off loans raised under the Main Highways Act in about 15 years. : Four per cent, to the small boroughs. The proposal is that the continuations of the Main Highways thfpugh boroughs with a population under 6000 will be declared to be Main Highways and will receive the full benefits of the Main Highways Act. This is estimated to cost £28,000 annually, which equals 4 per cent, of estimated total funds. Twenty-five per.cent, on Main Highways adjacent to the larger centres of population. With the amount allocated under this heading it is the intention that heavy traffic roads in counties ue.ar.-the larger centres of population shall be surface-treated, ahd where circumstances justify it the Board will in all probability grant a preferential subsidy up to, perhaps, in special cases, £3 for'£l towards the cost of such bet-ter-class pavements. The Town Clerk stated that the Main Highways stopped at the Borough boundaries at present, but the Board's proposal was evidently going to have the effect of making those roads Main Highways through the borough, and the 4 per cent, share of the Board'f. revenue was going to provide the subsidy. . ' The Council passed a motion receiving the letter.