PETROL TAX FOR ROADS

Press, Volume C, Issue 29499, 28 April 1961, Page 12

PETROL TAX FOR ROADS

Council Seeks 3d Increase (N.Z. Press Association) AUCKLAND, April 27. The Waitemata County Council today decided to ask the Minister of Finance (Mr Lake) to increase the petrol tax by 3d a gallon on condition that the extra tax be allocated to the National Roads Board to increase the subsidies payable to local bodies for roading. At present, said Mr W. B Souter, the Government collected Is a gallon, which constituted the entire revenue of the board.

Under his proposal the Government would pay Is 6d to the board. The other 3d would come from the present fiscal tax, which was a part of that remaining from the Is tax imposed in 1958. said Mr Souter.

He also urged that the Roads Board be asked to review the standard of reconstruction of State highways with a view to saving money. “Primary producers will contend that this proposal will mean an increase in costs, but they will have to make up their minds whether they are going to dip into their right-hand pockets for increased rates, or into their left-hand pockets for a slight increase in transport costs." Mr Souter said.

The alternative to the proposed increased tax was to reduce the amount of canital works, he said. The matter was urgent and the council should not consider saddling its ratepayers with an increase in the general rate.

“The 3d petrol tax increase is not going to make any difference," he said. “In England the price of petrol is between 4s 6d and 5s Id a gallon and in Italy it is as high as 7s. Even the increase last year in New Zealand did not restrict motorists.”