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Wednesday, 9 July 1930

During the last four years, the Commonwealth has paid the States £2,000,000 per annum under a ten-year agreement relating to Federal Aid Roads. Under this agreement the States were required to contribute 15s. for each £1 provided by the Commonwealth, and conditions were laid down as to the classes of roads on which the money should be spent. The Commonwealth also had the right of supervision.

The present Commonwealth Government has no desire to exercise any control over the activities of the States in relation to roads. It is, however, prepared to continue to contribute £2,000,000 per annum to the States for roads expenditure.

As the result of conferences on this matter a general agreement has been reached. Under it, the Commonwealth will pay to the States, during a period of 10J years as from 1st July, 1926, £2,000,000 per annum. The States will undertake to spend this money on the construction, reconstruction, maintenance, or repair of roads. They will not, however, be under any obligation to contribute any particular sum for roads expenditure from their own funds, nor will the Commonwealth exercise any supervision over the work of the States in this connexion.

A formal agreement on these lines has been submitted to the States, and will, at a later date, be placed before Parliament for ratification.

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