"INEQUITABLE."

Auckland Star, Volume LXVI, Issue 70, 23 March 1935, Page 11

"INEQUITABLE."

MOTOR TAXATION. ALLOCATION CRITICISED. LOCAL BODY CLAIMS. (By Telegraph.—Press Association.) CHRISTCHURC'H, this day. A decision to urge the Government to improve the method of allocating the petrol tax revenue ■to municipalities, including tramway undertakings, and the distribution of heavy traffic fees was reached at the conference of the Municipal Association yesterday. The recommendations include: —

. (1) That the petrol tax, annual registration fees and iyre duty be allocated. 25 per cent to boroughs and 75 per cent to counties.

(2) That in eai:h borough where there is a tramway undertaking which maintains a portion of the streets such tramway undertaking shall receive a share of the petrol tax allocated to the borough, and such share shall be in proportion to the area of streets so maintained in the borough.

The question was introduced by way of a. report by a special committee which, after reviewing the legislation in connection with motor taxation, stated that the present allocation of motor taxation was inequitable and arbitrary, and in justice to the ratepayers of urban areas a readjustment was long overdue. Consideration of the position showed that on a logical basis motor taxation should be equally divided between rural and urban authorities, and this was borne out by the present distribution of the heavy traffic fees.

It was recognised, however, that at the present time traffic was largely unregulated, and the country roads were used by fast heavy traffic, which caused considerable damage without a. compensating contribution to the maintenance of the highway. Therefore, the rural districts required some additional assistance until traffic was regulated.