Reading Question

Taranaki Daily News, Volume LVII, Issue 67, 7 August 1914, Page 2

Reading Question

A RADICAL CHANGE OF SYSTEM. NON-POLITICAL BOARD TO BE APPOINTED. MAIM ARTERIAL ROADS TO BE MAINTAINED BY THE GOVERNMENT. By Telegraph.—Press Association. The Minister of Finance, in his Financial Statement says:—''l am confident that the House will support the Government :n its effort by legislation to institute a control, independent oi the Government and of party, of moneys provided from the Consolidated Fund and the Public Works Fund in aid of local go/eminent ami local works. It is necessary to distinguish between subsidies and grants. Subsidies arc provided from the Consolidated Fund in

e.id of the ordinary revenue of local authorities, and constitute the anninl contribution by the State to the cost of local Government. Tho Municipal Councils alo-ie at present have their subsidies determined by a permanent Act, and hold i- statutory appropriation. The other local authorities which at present receive .subsidy—namely, counties, road boards, and town boards—foave the annual contribution of the country determined each year in the Appropriation Act. The Government proposes to establish all subsidies at the present rate by statutory appropriation, and to provide a further Mini equal to oiiefourtli of the tola? subsidies,'and place that sun annually in the hands of an ii'depender.t Board for allocation among the districts which, for particular reiTsens, require special assistance from the State.

Grants from tiie Public Works Fund arc at p'esent made to provide, either wholly o- in part, the cost of local works the construction (if which the Government of the day thinks it desirable tc encourage, provision being made biannual flf.];ropriation in accord with, the Public Works Statement of the year. The Government intends to establish an impartial and absolutely non-political •system for the apportionment of that part of the Public Works Fund which i:- available in any year for aid to local works; and, while I recognise the gravity and far-reaching effect of suchl a change, T believe it will have the approval of Parliament and of the country.

A further large provision for the relief of local finances is proposed in that . part of the Local Grants and Subsidies Bill which directs the ascertainment by ' the same impartial and non-political 1 Board of what are, and what are not. main arterial roads of the Dominion, and to what extent the Government funds shaild be applied to the construction and maintenance of such roads in ielief, wholly or in part, of the funds of the local' authorities. In this case the ascertainment by the Bn-.ird is required to be submitted'for (lie approval of the. House before it is finally adopted. But practically the settlement of this long ' vexed question is now made possible. The principle tc be established is that, while the ro.ils of a dishirt must be pr' /idam! maintained by (hat district from its ov.n fiim!:-., except, so far as they are aided uv subsidies or granls. the maintenance of the main' arterial roads. vhich -erve (he purpose,; of the people of the Dfminion, ami not merelv of Unpeople oi the locality, should' be the fi net ion largeh of tiie Dominion, and not of tic loca'itv. The intention of the G:iy.niinent i~ to , ■-.:ablish a definite rule t-li.u. work.- whirh are of special interest nu.l advanla-.. 1 0 a localityshould le provided by that locaMty. while works such as arterial roads, which are of far more than local interest o.- advantage, should be one of the burdens on the Dominion finances. The effect upon til • annua! finance of local authorities will be practically the smiic a- a large inci-is" of the annual subsidies: but I believe that the principle which I have outlined is just, and thai by ifi country takin.e over for f'l -■. first time its full share ef fh c . burden of the main roads of the Dominion the local auCioiities will he enabled in future, out of H cir ordinary to make I more ample provision for local needs.