H.—4o,

(b) Sources of Money expended on Road Bill, 1933-34 to 1935-36. The Department has also analysed the expenditure on roads during the three years ended 31st March, 1936, in order to ascertain the sources from which the money expended has been derived. The following table shows, under five main headings, the sources of revenue expended on (a) main highways, (6) urban roads, (c) other roads, and (d) all types of roads : —

The principal points emerging from the 1935-36 figures as compared with those of previous years are as follows :— (1) Loan-money. This item shows an increase of £305,000 over the previous year's figures and no w represents 14 per cent, of the total money expended. This is still in marked contrast to the year 1930-31, when this item represented almost 30 per cent, of the total. (2) Local Rates. This item has remained practically stationary and is still the chief source of money for expenditure on roads, this year's figure comprising 30-3 per cent, of the total. (3) Unemployment Taxation. The amount expended this year shows a sharp decline, approximately £460,000, and this item now accounts for only 12-5 per cent, of the total. (4) General Taxation. This item has remained almost constant. This year's figure represents 14-5 per cent, of the total, compared with 16 per cent, in 1933-34. (5) Motor-taxation. Motor-taxation again shows a substantial increase, this year's figure being £385,000 above that for the previous year. This item comprises 28-7 per cent, of the road bill and is gradually approaching the amount provided by local rates. Whereas the amount expended from local rates in 1930-31 exceeded that from motor-taxation by some £1,200,000, the excess is now only £125,000. Details of the increase in motor-taxation generally are shown in the Appendix of this report.

14

— - ™T | 1933-34. ! 1934-35. 1935-36. Main highways— £ £ £ Loan .. .. .. ... 237,469 360,118 549,546 Local rates .. .. .. 431,262 471,851 502,408 Unemployment-taxation .. .. 89,612 280,751 45,638 General taxation .. .. .. 157,257 151,229 157,403 Motor-taxation .. .. .. 958,611 1,277,791 1,607,804 Total .. .. .. 1,874,211 2,541,740 2,862,799 Urban roads— Loan .. .. .. .. 70,291 71,307 118,745 Local rates • .. .. 1,153,032 1,072,108 1,080,048 Unemployment-taxation .. .. 616,278 475,306 384,050 General taxation Motor-taxation .. .. .. 247,717 271,946 308,829 Total .. .. .. 2,087,318 1,890,667 1,891,672 Other roads — Loan .. .. .. .. 381,090 398,371 466,152 Local rates- .. .. .. 734,844 781,010 863,458 Unemployment-taxation .. .. 797,086 714,887 580,000 General taxation .. .. . . 971,955 985,081 1,010,496 Motor-taxation .. .. .. 210,958 385,689 403,398 Total .. .. .. 3,095,933 3,265,038 3,323,504 All roads — Loan .. .. .. .. 688,850 829,796 1,134,443 Local rates .. .. .. 2,319,138 2,324,969 2,445,914 Unemployment-taxation .. .. 1,502,976 1,470,944 1,009,688 General taxation .. .. .. 1,129,212 1,136,310 1,167,899 Motor-taxation .. .. .. 1,417,286 1,935,426 2,320,031 Total .. .. .. 7,057,462 7,697,445 8,077,975