BURDEN TOO GREAT?

Auckland Star, Volume LIX, Issue 190, 13 August 1928, Page 1 (Supplement)

BURDEN TOO GREAT?

HEAVY TRAFFIC FEES

MASTER CARRIERS' PROTEST

TAXES EXLEKD £10(1 PEI! VEHICLE

The N'ow Zealand Master Carriers' and Customhouse Agents' Federation lias issued a statement to the public, protesting against the imposition of the petrol tax. "unaccompanied with any remission or reduction of tlie existing burdens, especially of the heavy traflic fees that weigh especially upon the heavier motor lorries."

The federation admits that it agreed to a petrol tax, but only on rendition that existing taxes were so rearranged not to increase the total amount of taxation exacted from the vehicles in which the federation is concerned. The federation considers that the Government did not. meet this condition 1:v a mere reduction of the annual license lees on motor lorries from £3 to £2. and from £5 to £3 according to the class of vehicle. The federation is. therefore, protesting against the total weight of taxation, and against the heavy traffic fees in particular.

In its publication, the federation estimates that during the current year there will be collected not less than £1.500.000 in motor taxation. Excluding motor buses, motor cycles, tractors, new registrations. fines, etc., the total will be £1,332,533 13/10, of which 100,689 motor cars will pay £797,121 5/, and 18.450 'commercial vehicles (excluding motor hues, tractors, cycles, etc.) will par £535.412 8/10. "It is instructive," says the federation. "to consider the actual working or operating costs on a vehicle, and by v ay of example we may take a five-ton lorry costing £1200. The actual operating costs over a year average as follow:— £ s. d. Depreciation 200 0 0 Wages of driver 250 0 0 Petrol consumption (excluding petrol tax) 100 0 0 Oils, etc 15 0 0 Tyres (excluding tyre tax) 120 0 0 Insurance 15 0 0 Petrol tax 27 15 4 License fee :? 0 0 Driver's fee 0 5 0 Heavy traflic fee 75 0 Q Tyre tax 12 0 0 Repairs 50 0 0 Total £928 0 4 '"To illustrate the effect of such heavy working costs it is pointed out that assuming the vehicle is never idle in a year except for the .32 Sundays. 52 halfholidays. and 10 statutory holidays, there are 277 days on which the vehicle has an earning capacity, and that to return to the owner even the actual expenses of running, the vehicle must earn £92S in the aggregate, or £3 7/ per day on every one of the 277 days, and actually £1012 in the aggregate, or £3 13/1 per day on every one of the 277 days, before the owner receives even 7 per cent on his capital outlay. Then again it must be borne in mind that these ligures do not allow for overhead expenses, and, further, that it is assumed that no accidents occur and no idle time. However, it is common knowledge that the average idle time arising from repairs and overhauls amount, in respect of each vehicle, to at least three weeks in each year, which emphasises the necessity of the earnings per day being even greater than the figures given. Figures are quoted to show that at May 31 the number of motor cars registered in New Zealand was only a litti-* more than at May 31, 1927, the figures being 100,689 and 100,574, and the number of commercial vehicles (all kinds) was less, the figures being 20,619 and 20.963. Figures of cancelled licenses are quoted, and it is stated that "during the seven months following the institution of the petrol tax the number of cancellations was virtually four times as great as the number tor any period of seven months over the preceding two and a half years." "Also, the decline jin trucks must of necessity be attributed to the excessive taxation."