H.—4o

0. ROAD FINANCE. (1) DOMINION'S ROAD BILL, 1934-38. The Department has investigated the numerous statistical data available from official sources and has analysed and classified them in order to show approximately what the roads, streets, and bridges are costing under the headings of construction, maintenance, and loan charges. The classification of the roads into main highways, urban roads and streets, and other roads has been carried out, as each class of road or street has differing problems attached to it. This classification has involved a certain amount of estimation, as also have certain aspects of the figures for the whole road bill. Any estimations have been made on a conservative basis, and the figures are sufficiently close to actual fact to form a basis for reliable broad conclusions. Attention is directed to the fact that certain adjustments have been made to the figures published in reports prior to 1937, while in the 1937-38 figures it has been necessary to estimate the figures for interest charges on local-body loans for roading purposes. The following table shows the expenditure under the various headings for the five years ended 31st March, "1938 :—

The principal points emerging from the figures for the years ended 31st March, 1937, have been commented upon in previous annual reports. The figures for 1937-38, as compared with those of the previous year, are commented on below :— Maintenance. (a) Main Highways.—Expenditure under this item shows an increase largely due to an increase in the moneys spent by the Main Highways Board under this heading. The figures for 1937-38 are approximately £170,000 in advance of those for the previous year. (b) Other Roads. —Here the increase in maintenance charges is £126,000 on 1936-37. This is accounted for by a large increase in the moneys spent by counties out of ordinary revenue. (c) Urban Roads.—This item has increased by £39,000 from the previous year's figures. This is accounted for by the increased expenditure by Boroughs on road maintenance.

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1933-34. I 1934-35. I 1935-36. ! 1936-37. 1937-38. ! i I Maintenance — £ £ £ £ £ Main highways .. .. 954,656 1,501,539 1,632,453 1,314,694 1,482,531 Urban roads and streets .. .. 397,371 392,032 406,775 424,201 463,533 Other roads .. .. .. 718,943 955,994 1,098,366 1,038 204 1,164,972 Total.. .. .. 2,070,970 2,849,565 3,137,594 2,777,099 3,111,036 Construction —• Main highways.. .. .. 286,709 428,072 624,943 1,622,982 2,565,822 Urban roads and streets.. .. 1,104,047 944,235 903,918 938,692 982,008 Other roads .. .. .. 1,240,920 1,172,529 1,102,730 1,443,185 1,605,648 Total.. .. .. 2,631,676 2,544,836 2,631,591 4,004,859 5,153,478 Interest and sinking-fund charges— Main highways .. .. .. 632,846 612,129 605,403 605,925 642,695 Urban roads and streets.. .. 585,900 554,400 580,979 573,423 580,773 Other roads .. .. .. 1,136,070 1,136,515 1,122,408 1,047,394 1,135,116 Total.. .. .. 2,354,816 2,303,044 2,308,790 2,226,742 2,358,584 Total annual road bill — Main highways .. .. 1,874,211 2,541,740 2,862,799 3,543,601 4,691,048 Urban roads and streets .. .. 2,087,318 1,890,667 1,891,672 1,936,316 2,026,314 Other roads .. .. 3,095,933 3,265,038 3,323,504 3,528,783 3,905,736 Total.. .. .. 7,057,462 7,697,445 8,077,975 9,008,700 10,623,098