AUCKLAND TRAM FINANCE

Press, Volume LXXXIIi, Issue 25214, 19 June 1947, Page 3

AUCKLAND TRAM FINANCE

EFFECT OF SALES TAX ON TROLLEY-BUSES

DEPUTATION TO WAIT ON MINISTER

(P.A.) AUCKLAND, June 18. “We don't want to have to shoulder charges which mean all the difference between maintaining the present fares or increasing them at the expense of the workers who have no other means of transport." said the chairman. Mr W. H. Nagle, when five Auckland members of Parliament attended a meeting of the Auckland Transport Board to discuss the effect of sales tax and customs duty on the cost of new trolley-buses. The Minister of Education (Mr H. G. R. Mason) and Messrs R. M. Algie, R. Macdonald, W. H. Fortune, and D. Rae attended the meeting. Fifty trolley-buses had been ordered? and probably 300 new vehicles would be needed to make the desired transport change-over, said Mr Nagle. The first trolley-bus. which would be completely assembled, would have a landed cost of £8049. Others would be assembled here at a cost of £3OO each, and their landed cost would be £6678. Sales tax on the first vehicle would be £1515, and £lOO3 on each of the others, for which £331 customs duty would also have to be paid. The board was not asking for remission of the customs duty, which would amount to £17.227. The grand aggregate total of tax on the 50 vehicles would be £67.899 or £1378 a unit. The buses had an estimated economic life of 15 years, in which time the board would have to pay all interest and extinguish the debt. In suggesting that some remission of tax should be made. Mr Nagle said he had read of the happy position the country was in regarding revenue. Other items had been taken off the sales tax list. The Minister of Finance, Mr Nash, had stated he would give consideration to the matter when representations were previously made by the board. It was true that there were happy features in the last Budget, said Mr Mason, but there was plenty to be done with any surplus. The policy of stabilisation meant subsidies, and the increase in values overseas of essential imports was a serious problem for the Minister of Finance in the disposition of arty surplus money. It would not appear a surplus to him. He was sympathetic with the board, but did not want to base that sympathy on too optimistic a computation of the problems of the Minister of Finance.

Claims by the union would cost no less than £250.000 if all were granted, said Mr A. S. Bailey. The increase likely to follow the Federation of Labour’s application had also to be taken into account. It was clear that the board would have to be supported, either by an increase in fares or by a subsidy. An increase of 33 1-3 per cent, would be needed if all claims were granted. Visiting members of Parliament expressed their sympathy with the board. Mr Macdonald and Mr Algie suggested an early deputation to the Minister of Finance for a remission of sales tax before the next Budget was framed. It was decided to request the Public Passenger Transport Association to make arrangements for an early deputation to the Minister and that members of Parliament should be invited to associate themselves with the deputation.