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II. The Principal Administrative Methods followed or contemplated for the Execution
of the Work referred to in (I) and Any Legal Provisions relating to Such Work.
It should be understood that New South Wales is divided into approximately
320 local government areas styled as “ municipalities ” or “ shires Generally speaking,
the municipalities include the more populous centres, whilst the shires comprise rural
areas. It is the function of these local governing authorities to maintain the roads
within their areas and to build new roads as settlement requires. With the advent of
the motor-vehicle, however, it became impossible for local authorities to provide sufficient
funds to keep in order the roads subjected to heavy fast-moving motor traffic. As a
result, the taxation derived from motor-vehicles was devoted to expenditure on main
roads,' and the Main Roads Act provides that the Department shall assist local councils
in the upkeep of these roads. The general financial arrangements relating to the distri¬
bution of these funds is set out in reply to the next question.
In the execution of the works on main roads, it is the Department’s custom to entrust
works to local authorities wherever the authority has a sufficient organisation and is
willing to carry out the work. In some cases the local authorities complete the works
by their own day-labour organisations, whilst in others tenders are invited and the works
performed by contract. Where it is preferable for the Department to carry out work
itself, similar arrangements apply, the Department maintaining its own day-labour
organisation for the performance of some works and calling tenders in other cases. It
is found that the distribution of work between the Department’s own organisation,
contractors’ forces and councils maintains a healthy rivalry and tends to the completion
of works in the most economical fashion.
The maintenance of main roads, except in isolated instances, is carried out by day
labour either by the Department directly or by councils, because it is generally impossible
to specify precisely the work which is to be performed and so call tenders. On this
work, however, it is customary to secure supplies of materials, plant and tools and in
some cases to have the haulage work performed under contract.
III. The Principal Methods employed for financing.
Apart from the funds provided under the Main Roads Act, local authorities are
empowered, under a bocal Government Act, to levy annual rates on the unimproved
capital value of lands within their areas. These rates are used for public works and
services, and a substantial portion is devoted to the upkeep and improvement of roads.
For the main roads, however, special taxes are imposed on motor-vehicles, according to
the net weight of each vehicle, and these, coupled with a portion of the tax levied by
the Commonwealth Government on petrol, are used to assist local authorities in both
construction and maintenance works. .... 1 ^ * f
For administrative purposes, the State is divided into two parts the County 01
Cumberland and the country. In the former area, all local authorities are required to
pay a levy determined annually to a County of Cumberland Main Roads Fund. This
contribution is then amalgamated with the vehicle and petrol taxes, already referred to,
and from the proceeds the Department pays the full cost of all works carried out. In
the country, however, the Department assists councils according to the class of road
on which work is required. Thus, on State highways the Department pavs the full cost
of all works, whilst on trunk roads two-thirds the cost is paid (except in the case of new
bridges, where the full cost is paid), and on main roads the Department pays one-hal
the cost (except in the case of new bridges, where three-fourths the cost is borne by the
P On developmental roads, the Department is responsible only for works of new
construction, the councils being required to maintain all roads built in reasonable condition

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