Motor Unions’ Views On Higher Tax On Petrol

Press, Volume XCVII, Issue 28549, 31 March 1958, Page 14

Motor Unions’ Views On Higher Tax On Petrol

(New Zealand Press Association)

WELLINGTON, March 30. The presidents of the North Island and South Island Motor Unions expressed surprise yesterday at a Press Association message from Auckland reporting that the Minister of Works (Mr Watt) was contemplating an increase in petrol tax to the extent that he proposed discussing the matter with the Prime Minister (Mr Nash) this week.

The two presidents, Messrs W. H. Brown and R. Twyneham, said they were equally surprised at the suggestion that the increase would provide extra revenue for major road works for which local bodies have been unable to find finance. “It would be well to remind the Minister that some time ago the National Roads Board started a review of distribution and expenditure of the Road Fund. “The boa»*d itself admitted there were defects in the present administration as far as the exnenditure of the board’s moneys by local authorities was concerned and, indeed, members of the present Government took the initiative in Parliament in bringing the matter before the public,” they said. “To our knowledge that review by the Roads Board has not yet been completed although, in the meantime, the board has accepted —and without any contemplation of additional tax—the responsibility for construction and maintenance of arterial roads in boroughs and cities. “We would also remind the Minister that there is a Royal Commission on Local Government Finance sitting at the present time and the whole background of the commission’s order of reference is the investigation of local government finance. “We find it difficult to understand whv the Minister should even consider discussions on additional petrol tax at the present time, and especially without completion of the review, which the National Roads Board had proposed to undertake.

“Motorists will strenuously oppose any increase in petrol tax and our justification for such opposition is all the stronger with I the knowledge that the board has neither completed the investigation which we have already mentioned, nor has it waited to comply with the statutory provisions of the National Roads Act. that a survey of roading requirements and expenditure be undertaken at five-yearly periods. The board has not yet completed four years.” they said.