PETROL TAX

Press, Volume LXXXIII, Issue 25300, 27 September 1947, Page 10

PETROL TAX

HIGHWAYS BOARD REVENUE VIEWS OF MOTOR UNION The South Island Motor Union, at its annual conference in Christchurch yesterday, decided to request that the tax of 4d a gallon on petrol imposed in 1939 for defence purposes be removed without further delay and also to ask the Government to give an assurance that the minimum contribution annually to the funds of the Main Highways Board would be not less than the total taxation collected from motorists each year. It was agreed that the Municipal and Counties’ Associations, Federated Farmers, commercial interests and others should be invited to support the motion and that the resolution should be sent to all members of Parliament. The North Island Motor Union was associated in the resolution.

Mr M. H. Wynyard, motorists’ representative on the Main Highways Board, reported to the conference that heavier traffic on roads where wartime restriction on maintenance had left weaknesses was causing concern. To reduce elements of risk, as much road widening as possible was being carried out. With bridge work held up through shortages of steel and cement, the board was concentrating on its road sealing and reconstruction programme. Though work was restricted, through shortages of labour, equipment, and materials, costs were greater than in pre-war years. Maintenance expenditure in 1938-39 was £1,311,000, and in 1946-47 it was £1,750,000. This year it was estimated that more than £2,000,000 would be spent in this way. Discussing proposed changes in finance for the board, Mr Wynyard said £12,000,000 loan indebtedness had been written off by the Government and also £460,000 a year interest.. These two sums, and nearly £600,000 free for construction, were equivalent to nearly another 2£d a gallon of the petrol tax. If the board could get from the Consolidated Fund the equivalent of a total of lOd a gallon of the petrol tax the board would be assured of adequate resources. The board had been given considerable relief in the wiping off of its indebtedness and believed that it was justified in not objecting to the Government’s proposals. It had been assured of a grant equal to its present income as a minimum. “Revenue Might Be Smothered” The president (Mr W. R. Carey) said that if the beliefs of the board were realised all was well; but he was concerned that revenue from motorists might be smothered in the general fund. Mr P. W. Breen said the motorist was to the Government the goose that laid the golden egg. So long as the class tax went back to the the roads they were satisfied; but they would not tolerate its diversion to other purposes. It was to be hoped that the board would not have to go on its knees to the Treasury. Mr R. Twyneham (Canterbury) said the board might become another Government department. Those who paid should call the tune.

Mr G. Hamilton (Canterbury) said much could be covered under the blanket of the Consolidated Fund. Although the Government had wiped off debts of more than £12,000,000, it should be remembered that it had appropriated £28,000,000 from taxation on motorists for other purposes, said Mr M. M. MacDonald (Southland). The whole spirit of the Main Highways Act was being defeated in the abolition of the fund, said Mr C. M. Rout (Nelson).

Like Red Riding Hood, motorists were too trusting, said Mr F. W. Freeman (Canterbury). In conjunction with such groups as the municipalities and counties the union must demand an irreducible minimum for the board.

The resolution was carried on the motion of Mr Twyneham and Mr J. H. Main (North Otago).

It was decided to seek the completion of sealing on the Picton-Bluff main highway.