The funding and classification issues associated with local roads

Local Roads comprise 82 per cent of the Tasmanian public road network, yet account for only 42 per cent of expenditure on roads. 94 per cent of local roads are the responsibility of local authorities, with the State being responsible for the remainder. This paper examines the sources of funding for the roads, and the changes which have occurred in recent years. Particular attention is given to the value of funds in real terms. The matter of road classification, or the diversion of responsibility between State and Local Authority, is also discussed, and an outline of the present system is given. In recognition of a likely continuation of the recent decline in funds, the creation of a reserve fund, to be applied where councils experience difficulty with the upkeep of roads subjected to abnormal heavy traffic, is proposed (A).