TAXATION OF MOTORISTS

Press, Volume LXXXIX, Issue 27096, 20 July 1953, Page 7

TAXATION OF MOTORISTS

MINISTER CORRECTLY REPORTED

(New Zealand Press Association) DUNEDIN, July 18. The Otago Automobile Association disagrees with a statement by the Acting-Prime Minister (Mr K. J. Holyoake) about the cheapness of motoring in New Zealand. A Press Association message from Wellington quoted Mr Holyoake as saying: “The state of our roads, both main and back country, is proof that motoring is too cheap in New Zealand.’’

The secretary of the Otago Automobile Association (Mr P. F. Harre) said that the association’s first impression was that Mr Holyoake perhaps was not correctly reported, and he had sent a telegram to the ActingPrime Minister to obtain confirmation. The reply confirmed that Mr Holyoake was correctly reported. “I can only say, in view of this, that automobile asociations, through the Motor Union, will now take steps to have the statement clarified,” Mr Harre said. “The facts as we see them are, briefly, that if the various Governments over the years had spent on the roads all the money they had collected from motorists b» way of special taxation, then both main and backcountry roads would not be in the state they are today. “When motorists’ taxation *vas first introduced in 1926, the. motor unions agreed to it on the understanding that such taxation was to be spent on the roads for the first year or so. This was done, but successive Governments realising it was an easy form of obtaining revenue, not only increased the tax, but spent less and less of it on the roads.”