D.—l

" (5) Every local authority that receives a subsidy under the foregoing provisions of this section shall grant to the ratepayers concerned a rebate or refund, as the case may require, of an amount equal to twelve and one-half per centum of the rates made and levied by it on its own account for the current financial year on any land with respect to which this section applies." The total amount of subsidies paid from the Main Highways Revenue Fund during the year 1934-35 under the authority of the foregoing legislation was £178,246. Finance. The actual income of the Board's Revenue Fund from external sources for the year 1934-35 amounted to £1,419,473. The table below shows how this amount is made up, and the corresponding figures for previous years are also shown : —

The receipts from the Customs tax on tyres and tubes show a marked increase on the corresponding amounts for the past three years. Registration, license fees, &c., totalled approximately £1,500 more than for the preceding year although the amounts received from this source for the last three years have remained almost constant. The proceeds from the motor-spirits tax were very much higher for the year ended 31st March, 1935. The amount shown in the above table excludes the sum of £321,754, which was retained in the Consolidated Fund in terms of section 16 of the Finance Act (No. 2), 1934. The amount thus retained, together with the special farm-lands subsidy (referred to under Legislation), which involved the payment of £178,246 from the Highways Revenue Fund, make up £500,000, so that in effect the actual position was similar to that which existed last year, when £500,000 was wholly retained in the Consolidated Fund. As has been pointed out on previous occasions, the quantity of petrol imported into New Zealand is probably the most reliable index of the volume of the Dominion's motor traffic, with which is closely associated the cost of road maintenance. The gross importations of motor-spirit since 1926 have been as follow :— Gallons. Gallons. 1926 (January to December) 44,800,000 1931 (January to December) 61,800,000 1927 „ 48,000,000 1932 „ 58,400,000 1928 „ 54,500,000 1933 „ 55,400,000 1929 „ 62,400,000 1934 „ 64,600,000 1930 „ 68,300,000 It will be noted that the importations of motor-spirit for the calendar year of 1934 were much greater than for the previous three years. As a matter of fact, the figures for the last calendar year have only once previously been exceeded —in 1930. For the year ended 31st March, 1935, the summarized expenditure under the Revenue Fund was as follows :—■ Expenditure. Maintenance works — £ North Island .. .. .. .. .. .. 610,356 South Island .. .. .. .. .. .. .. 322,319 Administration and general charges .. .. .. .. .. 44,434 Loan charges (including commutation of toll-gate charges and Hutt Road fees).. .. .. .. .. .. .. .. 281,871 Subsidies on rates.. .. .. .. .. .. .. 181,105 Special subsidy on farm-land rates (Finance Act (No. 3), 1934).. .. 178,246 £1,618,331

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1924-25. 1925-26. 1926-27. 1927-28. 1928-29. 1929-30. 1930-31. 1931-32. 1932-33. 1933-34. 1934-35. £££££££££££ Transfer from Consoli- 35,000 35,000 35,000 35,000 35,000 35,000 t t t t t dated Fund Proceeds of tax on 161,986 223,699 188,450 219,658 196,747 155,722 129,188. 84,649 63,253 62,979 91,693 tyres and tubes collected through the Customs Department Registration and license 268,178 78,038*283,963 303,861 341,017 378,135 397,139 372,224 354,216 354,444 355,990 fees of motorvehicles, &c. Motor-spirits tax .. .. .. .. 130,461 730,414 873,369 1,219,209 1,231,202 644,126 669,868 970,506 Mileage-tax .. .. j .. .. .. .. .. .. 1,133 1,284 Totals .. 465,164 336,737 '507,413 688,980 1,303,178 1,442,226 1,745,536 1,688,075 1,061,595 1,088,424 1,419,473 I * This low figure was due to delay in the issue of number-plates for motor-vehicles, t Further transfers abolished by amending legislation.