PETROL TAX

Press, Volume LXXXII, Issue 24986, 21 September 1946, Page 6

PETROL TAX

USE FOR HIGHWAYS WORK MOTOR UNIONS’ REPLY TO MR NASH “Strong exception, is taken by the North and South Island Motor Unions to a statement, reported in the newspapers to-day as having been made by m e Minister of Finance (the Rt Hon. W. Nash) m the House of Representatives, that the original purpose for which petrol taxation was imposed was not for road purposes,” says a joint statement issued from the annual conference of the South Island Motor Union in Christchurch yesterday at whwh senior officers of the North island Motor Union were present ‘Tn contradiction, we would refer the Minister to the following acts:—the Motor Spirits Taxation Act, 1927, section 9 (the original petrol tax act), and the section 38 (main highways), which provide for the payment of motor spirits taxation into the Main Highways Revenue Fund In this action the North Island Motor union is fully associated.” The president (Mr W. R. Carey) said the Minister’s contention came as a bombshell; but he believed it could be refuted After the last general meeting of the union the case of motorists, claiming the lifting of wartime taxes and the application of money derived from motorists to the Purposes of the Main Highways Board, had been carefully prepared. After some skirmishing to obtain the consent of ttie Prime Minister (the Rt Hon. P. Fraser) to receive a deputation, the case was presented. The Mam Highways Board had received some relief in the Budget by the wiping off of some interest on loans, out there was a long way to go yet. It was agreed that members of the ® x ® cu hve should consider making a c ° ntr adiction to the claims of Mr Nash that petrol taxation was not originally intended for the improvement of highways.