l>.— l.

The following statement shows the manner in which these balances have been obtained :— North Island. Expenditure. Income. £ a. d. £ s. d. Expenditure (general) .. .. 516,839 12 8 Balance at Ist April, 1930 .. .. 30,610 0 3 Abolition of toll-gates .. .. 1,807 0 0 Interest from investments .. .. 5,615 7 7 Interest and expenses of raising loans, Motor registration—Annual license fees &c, and reserve for redemption of and tire-tax .. .. 336,007 11 9 securities .. .. .. 102,734 14 0 Motor-spirits tax .. .. 816,869 15 0 Interest on past Public Works grants.. 46,365 8 0 Part repayment of temporary transfer to Commission on collection of motor fees, Construction Fund ' .. 52 857 5 9 &c. .. .. .. .. 13,343 10 3 Miscellaneous expenditure .. .. 27,796 18 6 Finance Act, 1927 (No. 2), section 33 (Wellington City Council) .. . . 22,339 10 0 Finance Act, 1930 (subsidy on rates to local authorities) .. .. .. 143,511 16 4 Refund of duty on motor-spirit .. 1,812 6 4 Transfer to Construction Fund and spent in North Island .. .. .. 172,000 0 0 Balance .. .. .. 193,409 4 3 £1,241,960 0 4 £1,241,960 0 4 South Island. Expenditure. Income. £ s. d. £ s. d. Expenditure (general) .. .. 355,737 9 5 Balance at Ist April, 1930 .. .. 209,873 6 5 Interest and expenses of raising loans, Interest from investments .. .. 16,606 13 7 &c, and reserve for redemption of Motor registration—Annual license fees securities .. .. .. 36,423 8 0 and tire-tax .. .. .. 190,320 1 8 Interest on past Public Works grants .. 14,934 12 0 Motor-spirits tax .. .. .. 402,338 16 8 Commission on collection of motor fees, Part repayment of temporary transfer &0 - ■• ■■ •• •• 7,557 19 7 to Construction Fund .. .. 8,758 14 3 Miscellaneous expenditure .. .". 19,132 8 3 Finance Act, 1930 (subsidy on rates to local authorities) .. .. .. 75,803 15 6 Transfer to Construction Fund and spent in South Island .. .. .. 128,000 0 0 Balance .. .. .. 190,307 19 10 £827,897 12 7 £827,897 12 7 It will be seen from the above statement that the amounts to the credit of the two Islands are practically equal. Last year by far the greater proportion of the balance in the Revenue Fund stood to the credit of the South Island. The position has changed on account of three factors : (1) The reduction in maintenance expenditure during the past year has been proportionately much greater in the North Island than in the South Island. (2) The expenditure on construction in the South Island during the past year has been greater proportionately than in any other year since the Board commenced operations : this means that a greater proportion than usual of the money transferred from the Revenue Fund to the Construction Fund was spent in the South Island. (3) Much greater expenditure for the year on earthquake damage in the South Island than in the North Island. A permanent transfer of the sum of £300,000 was made from the Revenue Fund to the Construction Fund during the past financial year, this transfer being in accord with the policy announced at the time of the passing of the Motor-spirits Taxation Act. For the year ended 31st March, 1931, the expenditure, including administration charges, &c, under the Construction Fund was as follows :— Expenditure. £ North Island .. .. .. .. 407,784 South Island .. .. .. [, .. 303,466 Total .. .. .. .. .. 711,250 An analysis of the Board's expenditure, excluding overhead charges, and the expenditure by local authorities under the Construction Fund shows the following position :—

116

Board's Local I Percentage of T Percentage of Contribution. Auttorittfee' Total. | Board' S ContriContribution. ; bution to Total, ont n but i°ii to iotal. [ (1) Original Highway System. £ £ £ North Island .. .. 362,069 83,400 445,469 81-28 18-72 South Island .. .. 261,795 49,276 311,071 84-16 15-84 Totals.. .. j 623,864 132,676 756,540 82-46 17-54