MOTOR TAXES.

Press, Volume LXIII, Issue 19156, 12 November 1927, Page 16

MOTOR TAXES.

f AMENDMENTS IN BILL. FEES ON TRADE VEHICLES REDUCED. [THE PKESS Special SerTlce.'J WELLINGTON, November 11. amendments of consequence were made to the Motor Vehicles Bill by the House of Representatives today. One reduces the license fees for motor-lorries, and. the other removes the restriction it had been proposed to place on the use of number plates by motor dealers. A Labour attempt to abolish the payment of licffnse fees was heavily defeated. Another amendment provides that no duty is payable on petrol already shipped for New Zealand prior to November Bth. The various subjects traversed m other debates were revived when the detailed clauses of the Bill were under consideration, in committee The amendments introduced by Governor General's amendment on Tuesday, including reinstatement of the exemption of Government and local body vehicles from the necessity of being licensed, the exemption of trailers and tractors belonging to Harbour Board, and the synchronisation of tho period, for the 'issue of drivers' and vehicle licenses were agreed to at the instance of the Minister for Public VVoris (Mr Williams). ~,..-. „ „f The proposal to prohibit the use or dealers' plates on Sundays and at night times on week days was abandonecl, and the original provision enabling the use of the plate for any part ot the dealer's business adopted. It was explained bv the Minister that he hart been assured there was not a chance of Sunday trading being engaged m. He had been informed that there were occasions where prospective clients had to be taken out after business nours, and also when a trip was being made on a Saturday, to, say, Wanganui or Napier. A dealer might be on the road on the Sunday. Annual Licenses. Some time was devoted to the final clauses of the Bill. Holding that the Main Highways Board should oepend entirely upon the revenue to be derived from the petrol tax, Mr Fraser (Wellington Central) moved in the direction of abolishing the payment ot annual licenses. Mr Fraser said the amendment, if carried, would facilitate the smoothness of the working of the new duty, although it would involve a considerable financial sacrifice by the B6ard, amounting to probably about £250,000. The Minister for Public Works (Mr Williams) said he could not accept the amendment. "I do not think that it would be prudent to abolish it at this stage," he said. "We do not know exactly how the new scheme will work out." The Minister intimated that it was proposed to further amend the schedule of annual license fees with the object of reducing the flat rate charged for lorries. The big lorries which paid £5 heavy traffic fee would be reduced to £3 • tho smaller lorries which paid £3 would be reduced to £2. and omnibuses would be reduced from £5 to £3. "This is as far as I propose to go this year," added the Minister. "I hope it will be of some assistance to the motor-lorry owners. The relief he said, would amount to about £IO.OOO. "It pays the motorist to pay for a good road," said the Minister for Agriculture (Mr Hawken). ''ln running over good roads a motorist probably saves one-sixth of his annual charges." "It would be a great mistake to cut down the revenue as proposed. Mr Wilford (Hutt) declared that if the petrol tax legislation reached the Statute Book the revenue the Government would receive from all sources of motor taxation would reach £2,340,000. If the amendment proposed by Mr Fraser were carried —and the coming year was a normal one—there would be no reduction in the amount the Government would receive. The increase in. the Customs would supply the Minister with the additional revenue to offset the remission • involved in the amendment.

In the opinion of the Minister for Industries and Commerce (Mr McLeod) tho whole programme of road construction would be upset, and would have to be overhauled if the amendment were carried. Mr Forbes (Hurunui) considered that in view of the necessity for economy, half a million would be sufficient and reasonable for the requirements of the Main Highwa} r s Board. On a division the amendment was lost by 41 votes to 22. Messrs Potter and Harris voted with the Labour Partv for the amendment.

Heavy Traffic Pees, The proposals to reduce heavy traffic fees by £ 10,000 was the subject of considerable debate,. Mr F'-ser suggesting that in effect the Government's policy was to substitute as soon as possible a petrol tax for the flat rate tax. The Prime Minister said that was not the position. The Government would watch the working out of things during the next twelve months, and if the position justified it, they would make adjustments wherever possible. He was not sure that the reductions were justified. They certainly could not make any further remissions at that stage. Traction engines would continue at the present rate of £o. The proposals were approved. Mr Atmore (Nelson) moved an amendment to reduce the tax on motor spirit from 4d to 2d. The Minister declined to accept the amendment which, on a division, was defeated by 39 votes to 19. North v. South. Mr Sidey (Dunediu South) nioverTas an amendment that money raised from the petrol tax should, at the discretion of the Main Highways Board, be expended in the North and South Islands on the basis of the number of motor vehicles in each Island. He said he had drafted his amendment in strict accordance with the present law, which provided for the revenue derived from the tyre tax and the registration fees being distributed on thisbbar 3,s r 3, and he saw no reason why one portion of the revenue should be allocated in one way, and another portion in another way. He hoped this would not be regarded as a question of South versus North; it was not intended so, but was merely asking the Government to be consistent. Mr Lysnar (Gisborne) said he hoped the hon. member would not press the amendment, which was very unwise, and simply meant bringing up the question of North v. South. In the past the South Island had developed its roads and railways out of the general purse more than the North. There was more development there. Mr Sullivan supported the amendment. Mr Coates: Will the honourable gentleman apply the same to the Bailways? Mr Sullivan: The South Island paid for its own railways and roads to a

very great extent. (Hen. members: Oh, oh!) Something like three millions. Mr Burneti (Ten;.r.ka): Six millions of. assets. Mr Coatee: They paid. 1 per cent..on the capita! involved year for railways. Mr Sullivan: That raises aii entirely different principle. (Laughter.) Mr Forbes (Ilurumii) maintained that some such provision in the Bill would help to allay a great deal of the turmoil over the suggestion of main highways, because there was a feeling that' the South Island had not in the past got its fair share. Mr *Veitch'(Wa.]]ganm} supported the amendment. Mr Potter at ibis stage sought to interpose with a prior amendment,' increasing the allocation of revenue : to cities, under Clause 8. fro::; S per cent, to 12 per cent. The Prime Minister said he had been discussing this aspect of the case with the Wellington City Council; but as yet no decision had been come to. What was decided with regard to Wellington would apply, to other cities as far. as practicable. Mr Wilford and Sir John Luka said Mr Potter's amendment did not: go far enough to be.of any use to Wellington. At this stage the Chairman of Committee ruled Mr Potter's amendment out of order en the ground that it should have been moved earlier, and consideration of Mr Sldey's amendment was resumed. The Minister said he ccnld not accept the amendment, not that he vished to set Island against Island, but he did not agree that the original legislation on which Mr Sidey relied was right. He did not know how long he would be administering the fund, but : while he did so he wanted to be fair. Of those parts of the South Island which he had seen, those on which the greatest expenditure was required were away from the main highways, viz.,' the West Coast, and i wanted tho fullest liberty and latitude in spending money where it was most required. Mr Fraser urged that expenditure should be national, and not by Islands. Mr Bitchener (Waitaki) said he \ could not support tho amendment. He was perfectly satisfied that the Minister would allocate the money equitably. He looked at the matter from a New Zealand point of view, not an Island point of view. Mr Tapley (Dunedin North) supported the amendment. He said there was a great deal to be done to the roads in the South Island. Some of them were in a rotten state. Mr Dickie (Patea) pointed out that if the money were spent according to the number of cars in the Islands, the Xorth Island would get about £ll7 000 more than the South Island. After some further discussion, Mr Sidoy said- he would not press for a division, and his amendment was put and declared lost on the voices. The clause was agreed to. Other clauses were also agreed to, and a new clause was added exempting from duty petrol intended for use in the Chatham Islands. No Duty on Petrol Shipped Before November Bth. A new sub-clause was moved by the Minister to Clause 2. (4) "notwithstanding anything to the contrary in the foregoing provisions of this section, no duty shall be levied under this Act in respect of any motor spirits if the Minister for Customs is satisfied that the vessel by which 3uch spirits were shipped to New Zealand had left tho country of export with such spirits on board on or before the eighth day of November, 1927, and that at the time of their exportation from the country of export they were destined for New Zealand for consumption therein." Mr Savage wanted to know whether some importers were not going to get a present of the duty remitted, and Mr Fraser asked what guarantee was there that consumers were going to get the benefit of the concession made. Altogether, about 31,000 tons of oil would thus escape duty. .The Prime Minister said it meant a loss of duty of between £60,000 and £70,000. Mr Fraser, continuing, said he was afraid this was going, to benefit the big traders, but not the small traders, who did not stock large quantities of oil. This course was not followed in connexion with the general tariff. Sir Joseph Ward said the clause would protect small importers, who had entered into contracts on the basis of the old rates. The Minister said the clause would protect small people, who had no stocks in store, but had oil in transit, The Prime Minister said that small importers were satisfied with this arrangement, which would just about tide"them over till the largo importers would have to increase their prices. The new sub-clause was agreed "to. A further sub-clause to Clause 3 was added without discussion "Provided further that where any duty has been paid under the authority of such resolutions in respect of any motor spirits exempt from duty under this Act, the Collector of Customs shall without further authority than this section, allow a refund of such duty.