‘Ridiculous’ result from tax decision

Press, Volume CX, Issue 32481, 16 December 1970, Page 20

‘Ridiculous’ result from tax decision

(New Zealand press Association) NELSON, December 15. The decision by Marlborough local bodies to defer the petrol tax for two months might lead to a ridiculous situation, Mr S. A. Whitehead (Lab., Nelson) said today.

The local bodies yesterday decided to defer the decision in response to a suggestion by the Blenheim Mayor (Mr S. P. Marling). Blenheim and Picton favoured the tax, but the three Marlborough County Councils indicated opposition. A vote taken would have

rejected the imposition of the petrol tax 4-3. Mr Whitehead said today in Nelson that this was the situation he had forecast in the early hours of the morning when the petrol tax bill was being debated.

“If Marlborough does not impose the tax and Nelson does, a ridiculous situation arises. The petrol is delivered at Nelson, then transported to Marlborough.. “The big trucking companies will naturally use the cheaper petrol from Marlborough which they have already been paid to cart over there. “This is supposed to be controlled by another clause in the legislation which requires the appropriate tax to be paid according to the tax levied in each region through which the vehicles pass. “Can you imagine trying to work that at the Marlbor-ough-Nelson border?” . It was also obvious that unless all local bodies were in agreement and applied the same tax or rejected it, the legislation would be an additional cause of friction and frustration between total bodies and neighbouring regions, said Mr Whitehead.