D.—l.

It will be noted that income from revenue sources for the year 1937-38 was £221,000 greater than for the year immediately preceding when the amount was the highest on record. The receipts from the Customs tax on tires and tubes amounted to approximately £20,000 more than for the previous year, and is the largest sum obtained from this source since the year 1928-29. Compared with last year, registration and license fees, &c., show a small decrease as regards the amount paid into the Main Highways Account for the financial year ended on 31st March, 1938. Actually the number of vehicles registered was greater than for the preceding year, but the difference in revenue credited for highways purposes is due to the fact that this revenue is collected in the first instance by the Post and Telegraph Department. The amounts shown in the statements relate only to the period covered by the financial year and exclude balances not transferred to the Main Highways Account within that particular period. The proceeds from motor-spirits taxation were £220,000 in advance of the amount received under this heading in the previous year, and represent the largest sum which has been credited to the Main Highways Account in any one year up to the present. Revenue from the mileage-tax levied in respect of motor-vehicles using other than motor-spirits; and trackless trolly-omnibuses, increased by nearly £3,000, or approximately double the amount received in the previous year. The steadily growing income from this source over the past few years indicates particularly the increasing use of passenger and general transport vehicles having Diesel or electricity power units. The gross importations of motor-spirits since 1927 have been as follows, and these figures are usually accepted as providing an index of maintenance and construction requirements: — Gallons. Gallons. 1927 (January to December) .. 48,000,000 1933 (January to December) .. 55,400,000 1928 „ .. 54,500,000 1934 „ .. 64,600,000 1929 „ .. 62,400,000 1935 „ .. 65,300,000 1930 „ .. 68,300,000 1936 „ .. 86,800,000 1931 „ .. 61,800,000 1937 „ .. 85,700,000 1932 „ .. 58,400,000 It will be seen that for the last calendar year the gross total importations are somewhat less than for the preceding year. The decrease is not reflected in the revenue from this source owing to the fact that considerable importations occurred during the latter months of the financial year 1937-38. The receipts from motor-spirits taxation for the financial year, as shown in the income table set out earlier in this report, are a definite indication of the very substantial increase in mileage travelled by motor traffic. The following is a summary of expenditure from the Main Highways Account for the year ended 31st March, 1938 Expenditure. Maintenance— £ North Island . . . . . . . . . . .. 713,882 South Island . . . . . . . . .. .. 360,230 Renewals — North Island .. .. .. .. .. .. 95,385 South Island . . . . . . . . .. .. 42,889 Construction and improvements — North Island .. .. .. .. 1,270,546 South Island .. .. .. . . .. 909,781 Administration and general charges .. .. .. .. 175,312 Loan charges (including commutation of toll-gate charges and of Hutt Road fees) .. .. . . .. . .. . . 338,493 Subsidy on rates .. . . . . . . . . . 206,528 4,113,046 An analysis of the expenditure for 1937-38 by the Board and by local authorities on maintenance of main and State highways, as distinct from renewals, construction, interest on loans, and other overhead charges, is shown in the tabulation below : —

176

j , I Percentage Percentage tj „ Local i -t)__ *? Local „ (ta , 1 Anthorities' Total. n . , s . Authorities' Contribution. n . Contribution „ , Contribution. I . , , Contribution to Total. to Tota] £ £ £ North Island .. .. .. 713,882 93,236 807,118 88-45 11-55 South Island .. .. .. 360,230 60,207 420,437 85-68 14-32 Total .. .. 1,074,112 153,443 1,227,555 87-51 12-49 I