'TOTAL DERATING'

Auckland Star, Volume LXIV, Issue 108, 10 May 1933, Page 5

'TOTAL DERATING'

FARMERS' DEMAND.

HIGHER PETROL TAX URGED. KALLY AT PUKEKOHE. \ _________ "That tils representative meeting of ratepayers of Franklin and adjoining counties demands the abolition of the present system of rating for roading purposes, and calls on all county councils to bring united pressure to bear upon the Government to immediately derate all agricultural lands, and to institute a system, based on the principle of the user pays as a substitute." This resolution was passed by a big majority of the 400 ratepayers present at a meeting held at Pukekohe last evening. Farmers attended from all parts of the Franklin, Raglan, Manukau and Waikato counties, and a 'former chairman of the Franklin County Council, Mr. W. Claud Motion, presided. Mr. Motion discussed the desperate position into which the farming community had fallen, and expressed the opinion that something definite would have to be done immediately by the authorities to give relief. He instanced the case of the potato growers of Pukekohe during the past season, when the values received for potatoes would not compensate the growers for the labour for digging, the position of the wool producers, and lastly, the position of the dairy farmer, which had reached a serious stage. The time had arrived, said Mr. Motion, when farmers had to get together and demand that something be done to afford them relief. The farmers had improved the roads and the volume of traffic now using them was far above the capacity of the local bodies to maintain them. It was felt that if farmers were relieved of the duty of having to pay rates this would be one step in the direction of the relief desired. Origin of Rating System. Mr. J. H. Furniss, of Huntly, said that he and other members, of the Farmers' Union strongly advocated the total derating of farm lands. The big attendance was indicative of the fact that farmers were at last awakening to the injustice under which they had been working.^ Mr. Furniss contended that the rating System, apart from being antiquated, was not justified from the point of meeting modern needs in the Dominion. In every other walk of life t the principle was accepted of the user paying for that which he used, and so it should be in the case of roads. The present system was inequitable and undemocratic —inequitable because it placed a burden_ on a particular section of the community, and undemocratic because it was class taxation. It was also illogical. The roads, like the railways, belonged to the people and both should be on the same footing. The users paid to use the railways, and if there was any deficit in the working account such deficit came from the Consolidated Fund. Both road and rail, being social se"vices, should be placed on an equal footing and the users made to pay for the roads. Under the present system of rating the land to provide funds to construct and maintain roads, it was just as logical to make the landowner pay because the railway passed in front of his property. Might Penalise Backblocks. Mr. D. S. Reid, M.P. for Raglan, said he was in favour of derating to the extent of the total general rate, leaving special rates as they were. He said that if total derating was adopted it would probably be found that some of the backbloek roads at present unmetalled would never be improved under total derating, and under the system of making the user pay he was inclined to think that the settler 30 miles away from the railhead would be penalised to the extent of having to pay dearly for the carriage of liis goods by road, whereas the settler close in would benefit at the expense of his more unfortunate fellow farmer. "Under total derating, who would administer ?" asked Mr. Reid. A Voice: Harry Holland. Mr. Reid: I would be sorry indeed to see it taken out of the hands of local bodies. I am afraid the work would not be done as well by a higher authority. When I return to Parliament I will try to get the petrol tax [ increased for the purpose of derating along the lines I suggested, but whether we tax by rate, levy, or petrol tax, we j have stili to meet our debts. I Continuing, Mr. Reid said that until quite recently farmers had very little to complain about, because for every £1 of rates paid the road boards received | a subsidy of 10/, and'for every mile of metalled road the counties received a £ for £ subsidy, besides free grants. He reminded the meeting that the Government, like individuals and commercial concerns, did not know where to obtain sufficient money with which to carry on. He believed that next year something would be done to assist the farmer over his difficulty.

Limit to Tax Yield. Mr. J. N„ Massey, M.P. for Franklin, said the question was a bigger one than most farmers realised. Apart from the county areas, the position of the ratepayers in boroughs and town districts had to be considered. It was all very fine to talk about increasing the petrol tax, but the point should not be overlooked that, there was a limit beyond which tiie Government could not impose petrol taxation. All ki.-w what happened when the last petrol tax was imposed—benzine consumption dropped considerably. It was estimated that the benzine consumption this year would be 30 per tent less than it was the previous year. He had always, advocated that the users of the roads should pay for their upkeep. Recent legislation would have the effect of reducing fixed charges and in this connection the land would derive a direct relief. The attempt by the Government to co-ordinate road and rail transport was a step in the right direction and it was expected the farming community would benefit in consequence. When advocating the principle that the user pays, they should not forget that the motorist was not the only user, but that damage was also caused by cattle. Disposal of Tax Revenue. "If petrol is the basis of taxation to provide for derating, a tax of approximately 1/ pergallon will be sufficient to totally derate all rural and urban lands; that is, on the basis of last year's petrol consumption," said Mr. W. Boyd, of Matangi. He said that he had always held that the Government had no right to tax petrol for general revenue purposes. Every penny extracted through petrol and motor taxation should have gone toward the relief of the rural ratepayer, and not, as some of it has gone, to the Consolidated Fund. Voices: Hear! hear! Mr. Boyd said that had motor and petrol taxation been used for the specific purpose for which it had been levied

they would have had total derating of agricultural lands to-day. "When the Main Highways Board was constituted and began to function, it formulated a 10-year plan of constructional work. This was too much for a hard-up Government, which promptly raided the Highways Fund to the tune of £500,000. "In 1931 the Farmers' Union petitioned Parliament advocating derating and the petition was referred to - a special committee, which recommended the House to grant the prayer of the petitioners. Nothing has been done, although the Government has had full and ample opportunity. It has done nothing except to make a rebate of 12J per cent, but, as you know, last year was election year. This year, when we farmers are harder up than wo were a year ago, nothing is given. Many ratepayers are in the position of not being able to pay their rates, but the tinje will come when they must pay, or otherwise default. Although the county councils say they will not press for payment, these ratepayers are afraid every day they will get a 'bluey,' because the local bodies have no option but to keep the debt alive. I will not say what you should do, but if I were in that position I know what I would do. Under no circumstances would I borrow the money, like many have done, to pay the rates," said Mr. Boyd. Continuing, Mr. Boyd said what he objected to was paying twice. The land was, taxgd, there was a tax on -benzine and registration and license fees. This principle was wrong. "Ii you are prepared to put up with existing conditions then God help you. If you are not, then stick together and protest to your representatives whom you elect to the county councils, and if they do not do as you require—" A Voice: Kick them out. Mr. Boyd: Yes, kick them out. If you don't, blame yourselves. As Mr. Boyd resumed his seat a voice called out: "Is your name Larwood?" (Laughter.) A discussion between Mr. Massey and Mr. Furniss took place as to the amount of benzine tax required to meet the demand for total derating. Mr. Furniss contended that 1/ per gallon would be ample, but Mr. Massey dlaimed that on the figures supplied to him at least 2/2, in addition to the present petrol tax, would be required. Control of Arterial Roads. Mr. G. F. Mclnnes (Maramarua) expressed the opinion that they should ask for partial derating. He suggested that the Government take over the control of the main arterial roads, leaving the counties to control the secondary and backblock roads. This, he suggested, would give the ratepayers relief to the extent of more than half of their present rates. If they went all out for total derating, he was afraid they would antagonise city interests, who would then agitate against the farmers. This they wanted to avoid. After several others had voiced opinions in favour of total derating, the resolution was carried, there being a number of dissentients.