PETROL TAX.

Press, Volume LXIII, Issue 19161, 18 November 1927, Page 14

PETROL TAX.

STRONG PROTEST MADE. SOUTH ISLAND'S SHARE. A conference convened by the Canterbury Progress League, representative of the interests concerned with the imposition of the petrol tax, was held yesterday afternoon in the Chamber of Commerce. The notice of the conference was somewhat short, but the idea was to make the attendance representative rather than numerous. .Mr J, A. Flesher was voted to the chair. The following bodies were represented:—Progress League, Messrs J. A. I'leshcr, Jas. Storry, G. Maginuess, H. J. Knight, F. Thompson, C. Flavell, P. it. Cliniie; Chamber of Commerce, Messrs A. Wright and i\ E. Jones; Employers' Association, Mr W. Hay ward; South Island Motor Union, Messrs H. C. tiariey, F. \Y. Johnston, W. L. Minson, W. R. Carey, P. it. Hair.ian; Canterbury Automobile Association, Messrs F. W. Freeman and J S. Hawkes; Pioneer Motor Club. Messrs' R. H. Parker, M. P. Jones, F. Jones; Ellesinere County Council, Mr J. Cunningham; Waiinairi County Council, Air H. Patterson ; Heathcote County Council, Mr C. 'Flavell. Others present were Messrs A. I). Paterson and) F. Hobbs (Town Clerk, Lytteltoii). Necessity for Action. The chairman said that the object of the conference was to register a joint protest by the local bodies, motor associations, and others interested against the Government's refusal to provide for a definite allocation of the petrol tax as between the North Island and the South Island. It could be said that the whole of the South Island was united in making a protest against the seeming act of injustice about to be perpetrated. Invercargill, Dunedin, Christchurch, and! Nelson already had sent protests. He felt in this matter somewhat as he 'felt about the transfer of £350,000 from the Highways !3oard's> rerenue account to its construction account —that it would be a further injustice to the South Island. The powers that be never seemed to recognise the difference in local conditions as between the North Island and the South Island. (Hear, hear.) In the South Island they had only 40 -per cent, of the population, and until the pendulum swung the other way—and it seemed that it would be some time before it did so—the South Island always would be at the mercy of the North Island. No one who knew the condition of the roads in the North Island blamed North Islanders for exploring every means of getting money for roads. But if, as all agreed!, the user of the roads should pay, there was no reason why the South Island should not be allowed to enjoy the benefits arising from its conditions. If it cost less to forjn roads in the South Island there was _ no reason at all why those who provided the money should not enjoy the benefit of it. The new tax was estimated to produce £750,000, and he did not think that the Main Highways Board could! spend that amount in any one year. It meant, therefore, that there j was going to be an accumulation of funds, and in such cases there was . always the danger of diversion from ! the purpose for which they were raised. He referred to the necessity for stirring up the people c>f the South Islaud to united action, and said that it appeared that the only way out was that suggested by Sir Robert Stout — softie form of provincial administration of funds provided for public purposes. Otherwise Canterbury wouldi continue to be treated as the milch cow for the north. Some Ulterior Motive. Mr F. W. Johnston said that when one noted tie unquo haste with which the legislation was 'passed in order to raise taxation that would apt be required for two or three years, there seemed to be some ulterior motive, probably to boost the Consolidated Fund until the money was required. Ho said that seriously. What could be the (possible object of the haste, and tho very great extent of the tax forced upon them ? Already the precedent regarding the allocation had been set up and he considered that it was a proper precedent, especially in respect of ' a tax based on the use of the roads He moved on lines that, later, were submitted in the following terms: —"That this conference, representative of the Canterbury Progress League, Chamber of Commerce, Employers' Association, County Councils, Borough Councils, South Island Motor Union,' Canterbury Automobile Association, Pioneer Club, and others interested, protests against the petrol tax legislation which has been passed without making provision that the amount received by way of such tax for the purpose of the Revenue Fund of the Main Highways Board shall be so apportioned between the North Island and South Island that the amount allocated to each Island shall be fixed by reference to the number of motor vehicles registered in each Island; and that the amount so allocated shall be expended on the highways in each Island; further that this conference calls upon the South Island members of Parliament to take advantage if every opportunity that presents itself, and particularly when the BjU to amend the Main Highways Act is

before Parliament to bring about the alteration of the law necessary to give effect to the foregoing protest/' Other Speakers. Mr A. F. Wright seconded the motion. He said that he did not think that South Island members of Parliament realised the intensity of feeling that existed in the South Island on this matter. If they had realised it, they would have made a more united, more determined, and more spirited protest against the legislation passed. The tax was a special one. raised for a special purpose, and it ought to be spent for the purpose lor which it was raised. The road users in the South Island who paid the tax should have it spent in the island in which it was raised. They asked that this principle, for which, in the past, the motor organisations fought so strongly, should not be abrogated. Mr H. C. Harley outlined the action taken by the South Island Motor Union in the matter and said that while the Minister had listened to the representations he had not been guided by them. Nothing was surer than that there would be a big nest egg in the hands of the Highways Board in a very short time—money that the Board could not spend as fast as it was raised. He submitted that 2d per gallon should have been imposed, and if that had been found insufficient motorists would have raised no objection to an increase to 4d " Mr H. J. Knight said that nothing had been said against the petrol tax and bouquets could be handed to the Government for having decided upon the only equitable form of taxation. Ho submitted, however, that the expenditure of the tax should be proportionate throughout the Dominion—that it should l>e spent where it was raised, haying due regard to main highways used for traffic from other parts. The motion was on quite right lines and he supported it. Mr W. Hay ward said that he would have liked to haive seen the protest take the form of a protest against the amount of the tax. Twopence a gallon would have been ample; founpence, as had been remarked, was ridiculous. The motion was agreed to unanimously, and it was decided to forward copies to the Prime Minister, the Minister for Public Works, and to each South Island member of Parliament. NORTH OTAGO VIEWS. (press association telegram.) OAMARU, November 17. At to-night's meeting of the North Otago Motor Association held to discuss the petrol tax it was resolved l : "That this meeting approves of an imposition of 4d. per gallon, but strongly protests against the incidence of expenditure of such tax being left solely to the discretion of the Minister for Public Works, and unanimously urges that the tax collected in each Island be allocated to such Island.'' "That this meeting also approves of the South Island having an extra member on the Main Highways Board, such member to be appointed by the Soiith Island Motor Union."