Waimairi objects to petrol-tax bill

Press, Volume CX, Issue 32459, 20 November 1970, Page 14

Waimairi objects to petrol-tax bill

Unanimous opposition to the proposed local body petrol tax was expressed by the Waimairi County Council last evening, when it decided to urge the Government to reconsider its proposals with a view to finding realistic alternative sources of money for local government. The council suggested that help could be given by a 2 per cent deduction from income tax.

The council also asked for an urgent special meeting of Ward 11, the North Canterbury group of the Counties’ Association, to discuss a notice of motion to convey to the executive of the association dissatisfaction at the way in which the association had become associated with the petrol - tax bill and. the suggestion that the I m e as u r e had the unanimous support of counties. Cr W. T. Rice said the-' council’s total expenditure on 1 road work exceeded $250,000 ' a year and this was bound to rise. The council could pay i lip service to the motorists J by allocating the petrol-tax ’ money in general to roads,, ( but this would mean in ef- 1 feet a reallocation of money < for other purposes. The proposed tax discrim-i< inated against the motorist, : said Cr Rice, but it could be ’ a source of council revenue.; The council, he felt, should ‘ either put up a viable alter- I native, or shut up. J ALTERNATIVE He suggested that 2 peri s cent of P.A.Y.E. and other l income tax could be allocated 1 to local bodies on a populate tion basis in regional group-it ings. In the year to March '. 31, 1969, the Government 1 collected s69lm in income f tax, and collected $779m in s 1969-70. This year the taxjii could well amount to sBsom or s9oom. jt “This would provide as 1 much as the petrol tax and c would not discriminate 5 against the motorist” he >’

said. “It would not penalise bus services. It would not be inflationary, like the petrol tax, or tempt local bodies to increase rates to get a bigger i share. “It would be paid by those who could afford it, in a fairly painless way, and could be applied immediately if the Government was prepared to act.” He moved and Cr F. J. Aitken seconded that both the Government and the Opposition be asked to give urgent to a 2 per cent, [deduction from income tax. 'The motion was carried. “ALL HUSH-HUSH” “We don’t want to shut up. This wbs all hush-hush anyway. It was unreasonable that we were not given an opportunity to consider it,” said Cr G. G. Don. It had been inplied that the Government had a mandate for the petrol tax because ? it was approved by the I municipal and counties asso-' ciations, said Cr W. R.| Holmes. That was not the case “This proposal came forward with indecent haste and shrouded in secrecy,” said Cr Holmes. “This has been described by some people not far from here as the most revolutionary piece of legis-! lation since the signing of; the Magna Carta. “We are all in favour of some help for local government, but in effect with the petrol tax, all we would be doing would be taking from the motorist the amount he would add to his rates cheque. This council, and all others have been drawn into a conspiracy against the motorist.” j Cr Holmes then moved that | the special meeting of Ward! 11 be called and this was! carried. Cr A. A. Adcock; said the council should make? it clear that it was concerned about the way the issue had been handled. CHAIRMAN’S VIEWS “For some time, we have; believed that a community! tax is desirable,” said the; chairman (Mr D. B. Rich).! “As I understand it, the select committee of the two associations was going to make suggestions and report back to councils so that the proposals could be debated and examined. “The Government recognised the committee as an advisory committee, but Mr Muldoon said that the Gov-

eminent was not going to be a collecting agency for local government. There has been a tremendous amount of procrastination, but the Government decided with extreme urgency to pass the measure this session. “The counties' and munici-

pal association executives were told about this, and mayors and county chairmen were called to Wellington and told what the Government was going to do. Just today, I received copies of the minutes of that five-hour meeting. “The county chairmen had. no mandate to speak for their councils. The Taupo County Council has invited us to ask local members of Parliament to have the bill deferred for study.” The council, said Mr Rich, I could be dissatisfied with its own association. -The Prime Minister (Sir Keith Holyoake) had told local bodies that the Government was going to adopt the petrol tax proposal, and, if not, it was unlikely that local government could expect help in the near future. “INCORRECT” It was quite incorrect to say that the measure had received the unanimous or even a majority support of the counties. The bill could become law in this week, yet there was no doubt it was inflationary, discriminatory, would put up prices, and affect fanners and everyone in the country by its effect

on exports. Just a little time | for consideration was needed. : Cr Aitken said that the 'council should show : ship as one of New Zealand’s biggest counties. He then moved that both the Government and the Opposition should be told of the council’s opposition to the petrol tax, or any other unjust, inflationary tax, and ask for realistic action to help local government. This was finally passed, with Cr F. S. Blogg seconding, to the effect that the council opposed the petrol tax and urged the Government to reconsider realistic alternative action being taken. Cr R. C. Neville suggested that a more equitable tax would be one placed on electricity bills. In Christchurch, this tax could be collected by the M.E.D. and the other supply authorities. Thus, local Dodies themselves could raise money for local bodies. Cr Holmes suggested that, if the bill was passed, the council should support a nil tax, or the lowest possible tax.