MAIN HIGHWAYS.

Press, Volume LX, Issue 17985, 31 January 1924, Page 8

MAIN HIGHWAYS.

MONEY FOR MAINTENANCE.

TAXATION ON TYKES AND

PETROL.

(PRESS ASSOCIATZOH TmMaASC.}

"WELLINGTON, January SO

The Hon. J. G. Coates attended a meeting of tTio executive committee of the Now Zealand Farmers' "Union and addressed members on the proposals in connexion with motor and highways taxation.

Mr Coates said more revenue was wanted for the maintenance of roads, and it was a question of deriving it from users of the roads. They were going to hold a series of conferences with local bodies and motor interests so that when Parliament met they would have some proposals on which they were more or less unanimous, and upon which Parliament could express its views. ,He recognised that so far as local bodies were concerned they were powerful influences in Parliament, possibly ono of the most powerful influences in the country. Parliament

last year appropriated £90,000 for road maintenance, and it could be assumed that local bodies had borrowed something like the same sum for road construction. That money had been spent and there was no sign that it had been spent on the roads. The Government could not continue paying out of the Consolidated Fund as there were certain charges on that fund which could not bo evaded. They must look to the users of the roads to contribute towards their maintenance, 3000 miles of which would come under the Highways Board, which would require £300,000 for interest and maintenance at tho lowest estimate. It was thought they would get £150,000 from the tyro tax and the balance from motor taxes. If they -were relying on local bodies to maintain roads for the amount of traffic that went on them, they wore relying on something that was not practical, and would not work out. No one wanted more taxation, but if by a contribution from the user of the roads thdy could give him a track on which he could run economically, a. tax of a small amount would recoup him. It was the economic cost of running a motor-car that counted. In America many States adopfed a petrol or gas tax. If a car travelled 2000 miles the owner paid a tas on petrol for 2000 miles. In a way it would regulaXe speed, as speed meant larger consumption, and excessive speed meant an excessive tax. A heavy load also meant a heavy consumption. It was also proposed to tax motor-cars at £3 each. He hoped the Minister of Finance Wc-tild give them a little from the tax on bodies of cars, but he did ftot give that- as a Ministerial statement* A petrol tax could be collected over- the counter at less cost. He thought tEis would" be the best way. After the Minister left, . a motion was proposed favouring a tyre and petrol tax, but not a flat tax. Finally the question Was adjourned to the next meeting of the executive and provincial executives.