D.—l

A comparison of the contributions of local authorities towards the cost of maintenance of mam highways shows considerable reductions this year compared with the figures for last year. Towards the cost of maintenance of primary highways last year the local authorities found the sum of £273,063, whereas for the year under review the corresponding amount was only £235,688, or a reduction of over £37,000. On secondary highways it will be seen from the above table that the local authorities found £82,151, whereas for the previous year the amount was £102,786, a reduction of over £20,000. The total reduction in the local authorities contribution on the whole highways system was therefore about £58,000. The following tabulation shows the amount which has been provided by the Board and the local authorities for expenditure on both construction and maintenance of main highways during the seven years the Board has been in operation : —

The figures in the above tabulation do not include indirect charges such as supervision, interest, and other overhead charges. An analysis of the actual expenditure on maintenance by the Board in each Island, as compared with the number of motor-vehicles in each Island, at the 31st March of each year since the inception of the main-highways scheme gives the following results, expressed m percentages of the Dominion totals : —

In accordance with the direction contained in section 21 of the original Act, and following on the Board's resolution passed in May, 1925, an apportionment of the tire duty, registration and license fees for the year ending 31st March, 1931, has been made between the two Islands in proportion to the number of mo tor-vehicles registered in each Island on that date. As explained in the last two annual reports, no statutory provision exists requiring an apportionment of the proceeds from the petrol-tax between the two Islands. The Board is of the opinion that the most equitable method of distribution of this tax is on the basis of the consumption of inotorspirits in each Island. As in previous years, the Board obtained figures from oil companies, and these figues show that during the calendar year 1930 approximately 67 per cent, of ttte motor-spirit imported was consumed in the North Island, and approximately 33 per cent m the South Island, as compared with 69 per cent, and 31 per cent, respectively for the previous calendar year. No adjustment has been made on these percentages to take account of rebates, because definite information is not available, and in any case it appears probable that the rebates in each Island will bear the same relative proportions as the petrol consumed. Moreover, the proportion of rebates is so small that a verv Considerable error in their proportions would not materially affect the proportion of the totals. In making the apportionment the interest and redemption reserve charges on moneys borrowed for construction work in each Island have been charged, against the revenue allocation to each Island, and other adjustments in connection with interest on accumulated balances have been made The subsidies on rates to local authorities paid from the Main Highways Revenue Fund under the authority, of the Finance Act, 1930, have also been taken into account in the apportionment. On the assumptions riven above, the balances to the credit of the North Island and South Island respectively on ffilst March, 1931, were £193,409 4s. 3d. and £190,307 19s. 10d.

8*

115

1924-25. 1925-26. | 1926-27. 1927-28. 1928-29. 1929-30. 1930-31. I £ £ £ £ £ £ £ Maintenance by Board 123,675 279,404 438,762 523,581 756,399 1,049,249 872,577 Maintenance by local 110,001 185,015 276,349 269,065 284,526 375,849 317,839 Construction by Beard 222,422 421,880 540,362 449,904 936,148 1,007,957 667,902 Construction by local 80,000 142,761 255,860 262,538 214,155 203,148 j 150,984 authorities I Totals .. [536,098.1,029,060 1,511,333 1,505,088 2,191,228 2,636,203 2,009,302

1924-25. 1925-26. i 1926-27. 1927-28. 1928-29. 1929-30. 1930-31. N °£enle .. 6449 65-27 64-86 67-51 66-13 62-30 59-23 Motor-vehicles .. ., 60-91 61-41 61-86 62-19 63-08 63-63 63-84 expenditure .. 35-51 34-73 35-14 32-49 33-87 37-70 40-77 Motor-vehicles .. •• 39-10 38-59 38-14 37-81 j 36-92 36-37 36-16