ALLOCATION OF FUNDS

Sun (Auckland), Volume III, Issue 720, 20 July 1929, Page 16

ALLOCATION OF FUNDS

MINISTER’S EXPLANATION (THE SUN’S Parliamentary Reporter) PARLIAMENT BLDGS., Friday. A full explanation and justification of his methods was made ‘in the House of Representatives today by the Minister of Public Works. the Hon. E. A. Ransom, when dealing with the automatic allocations of Public Works moneys. There was quite a wrong impression already in the mind of the people, he said. The Press had indicated in its columns that he intended to do away with the automatic allocations. “I have no intention of doing that," he said, “but it is my intention to vary the incidence and formula used. Lloney controlled under the system is capital money from the Public Works fund, and there is a certain amount fixed each year by the Treasury. Last year the amount was £424,000, and this year £400,000. In that respect, as well as in others, some criticism has been levelled at the Government, he continued, but it was an honest; endeavour, by the Government, to live within its means. It was recognised that in making the allocation, consideration was to be given to the amount and general expenditure upon reading. It was felt that £400,000 would meet the requirements of the Dominion as soon as the system of allocation was announced and notices sent out of the amounts to be made available. Concern was expressed because the allocations would produce less for local bodies.

NORTH AUCKLAND’S CLAIMS Particular representations had been made to the Minister by the North Auckland district. and information had been asked for as to the variation proposed. The Minister said that if he had thought his system would not bear the light of investigation he would not have adopted it, so he gave the representatives of North Auckland access to all the figures. He had then asked them if they had found his system to be wrong, and they replied that they had no fault to find in it, but they nevertheless asked that no variation be made on the allocations in their district. ,_ __ ~ A A _

An equitable distribution of funds had caused him to change the system. He proposed to show that it was not impossible to adhere to the old alloca~ tions, and be fair to all the road districts of New Zealand. For that reason he could not agree to the request to exclude the North Auckland district from automatic allocation. The Minister said that he had removed two of the sections which, in his opinion, did not particularly apply. The first section he had. removed was that referring to area, because he though' no great value was attached to it, as in some districts there were areas that were not roaded and never would be. He had also removed from allocation the population provision. He heldthat districts that had a. greater population were the best able to look after themselves. It was the more sparsely populated areas of New Zealand that needed attention. '

ON £1,000,000 BASIS Calculations for each district were made as if there were £1,000,000 available, and when the actual vote was announced the proportionate adjustments were made. The Minister said on the basis of £1,000,000 the following allocations were made:—Amount of the general rate of any road district, £50,000; mileage of roads in use apart from those metalled or surfaced, £IOO,OOO (increased from £50,000); local body loans for roads, £IOO,OOO (increased from £50,000); estimated amount re—quired to complete all roads as metalled roads except paper roads, £375,000; estimated value of Crown and native lands suitable for settlement, £375,000.

The only alterations made were the transfer or the £50,000 formerly al—lowed to area. and the £50,000 allowed to population to two other items, as indicated. In addition, £55,600 had been set aside for meeting contingencies, particularly for backblocks roads, and in the past such requirements had been very fairly met from that fund.

There were 13 road districts in the Dominion. If an average allocation of the £400,000 had been made, each district would have received £30,769. It was interesting to note that the Whangarei district was this year to receive £49,180, Auckland £78,687, and Tauranga £48,793. In other words, the :11locations for those districts averaged £58,887, or £28,118 more than the Do—minion average. Those districts might have suffered in comparison with the amounts received in the preceding period; but the Niinister contended they were still being fairly treated.