§ 22. Mr. MANVILLEasked the Minister of Transport what amount of the £7,785,000 collected in motor taxes between the 1st January and the 31st March last, has in fact been voted or indicated as approved to local authorities in respect of highway improvement and maintenance by the Minister of Transport; what proportions of such indicated and approved sums have so far received Treasury sanction; and why Treasury sanction is necessary in respect of the disposition of this ear-marked taxation?
§ The MINISTER of TRANSPORT (Sir Eric Geddes)No portion of the sum mentioned has yet been definitely indicated to individual highway authorities. The authorities are now sending in their estimates of expenditure on the maintenance and improvement of classified roads for the year 1921–22. When these estimates have been examined and approved, the grants will be indicated and payments made in quarterly instalments. Treasury approval of expenditure from the Road Fund is required under Section 8 (1) of the Development and Road Improvement Funds Act, 1909, as amended by the Roads Act, 1920.
§ Mr. MANVILLEWill the right hon. Gentleman say why there is this delay, and also whether any portion of the sum received in taxes in this way is applied as interest and sinking fund on loans which may be required to carry out those improvements which, I imagine, should be effected apart from the direct payment out of taxation?
§ Sir E. GEDDESThe taxation only came in at the beginning of the year, and every endeavour has been made to adjust the arrangements in the meantime. The question of the funding of loans as a more economical way of maintaining the roads by capital expenditure, rather than going on with more costly maintenance, is one of the items that we have to consider, and I hope within the next few days to consider it.
§ Sir W. JOYNSON-HICKSIn the meantime, is this large sum on deposit and earning money for the benefit of the roads?
§ Sir E. GEDDESYes, Sir.