ROADING POLICY

Auckland Star, Volume LXXV, Issue 58, 9 March 1944, Page 6

ROADING POLICY

USE OF TAX PROCEEDS 1N VKSTIGATION SUGGESTED An immediate investigation into roading finance, with a view to placing it on a sound basis at the conclusion of the war, is urged in a statement issued by the North and South Island Motor Unions.

It is stated to be the opinion of the unions that in determining the post-war roading policy the Government should, in addition to tyre tax and motor vehicle fees, devote the whole of the proceeds from the petrol tax to main highways purposes, so that the policy of borrowing capital for those purposes could, with, perhaps, the exception of loans for permanent bridges, be discontinued.

It is added that the application of motorists' funds to the construction and maintenance of roads has reduced the proportion of finance provided for main highway purposes by local authorities from approximately one-quarter after the first declaration of main highways to onetenth of the total amount expended. The unions further state that it is claimed by automobile associations that a sound financial policy, with direct application of the petrol tax to roads, would have been of great benefit to the national finances and roading policy, and would have avoided the substantial borrowing programme which has been indulged in for main highways purposes.

The statement pointed out that the amount of petrol tax revenue diverted to purposes other than roading, had increased from £33,000 «in 1930 to £3,410,000 in 1940, and, with reduced petrol consumption, to £2,175,000 in 1943. "The total petrol tax collected to the end of 1943 amounted to £45,677,000, of which £23,675,000, over 50 per cent, has been retained in the Consolidated Fund, while £22,002,000 has been paid into the Main Highways Account," says the statement. "This, however, is not the total relief to the Consolidated Fund, because certain charges totalling £4,250,000, Which were previously met from that fund, have been transferred to the Main Highways Account and have, consequently, further reduced the amount available for direct expenditure on main highways."