Bitumen tax to be reviewed

Press, Volume CXV, Issue 33775, 22 February 1975, Page 3

Bitumen tax to be reviewed

(N.Z. Press Association)

WELLINGTON, February 21

The Minister of Finance (Mr Tizard) will seek a report from the Treasury on the implication of the higher bitumen tax after this morning’s meeting with representatives of local bodies and road users on finance available for roading.

After the meeting Mr Tizard said submissions had been made by the deputation

on the bitumen tax and he I would seek a report on the ! implications of the extra tax I which had arisen from the i higher price. i f Some deputation members ) had seen this tax as a levy i

by central government on local government, although they had conceded there was a wide private use of bitumen, he said. Mr Tizard said that although no undertakings had

been given, the Government might give some indication on roading funds before Budget time. BRIDGING The deputation had given “the clear impression” that it regarded bridging as a greater priority than roading — especially some of the older rural bridges. Funds should be concentrated in this area, it submitted. Mr Tizard said that the Government accepted that class one roads served by bridges of less than class one limited the effectiveness of the whole roading system. The deputation, led by the chairman of the Local Government Council (Mr C. N. McKenzie), told Mr Tizard, the Minister of Works (Mr Watt) and the Minister of Local Government (Mr May) that an injection of at least $2O million into National Roads Board funds would be needed if roading standards were to be maintained. The deputation also recommended:

That motor registration and licence fees of $21.6 million a year should be returned to the board fund. That the sales tax on bitu-l men be abolished, saving $2 million. The central government should make a greater contribution to roading. That petrol tax be not increased.