More petrol tax wanted

Press, 27 March 1979, Page 6

More petrol tax wanted

Local authorities will be looking for an increase in their share of the petrol tax when they meet for the Municipal Conference next week. The petrol tax of 0.66 c a litre was set in 1971 to ease the burden of rate increases on ratepayers. The proportion received by local authorities has not been changed, although the price of petrol has risen 185 per cent since 1971. As a proportion of rates levied by authorities, however, it has fallen. Mr J. Gray, the Christchurch Town Clerk, said the petrol tax was worth 21 per cent of rates in 1971. Last year it was worth 7| per cent.

Had the petrol tax been set as a percentage of the price of petrol, it would have kept up with the increase in petro] prices. But it is now worth only 2.19 per cent of the price of petrol compared with 6.25 per [cent seven years ago. Mr Gray did not think local authorities had any chance of regaining the 1971 percentage. Many other parties, including oil companies} and retailers, are looking for a share of the price cake. Petrol tax goes into a regional pool. The Christchurch region extends from the Waimakariri River to

ithe Rakaia River. Local authorities receive a proportion of the pool, based on the total rates levied in their district. If an authority increases its rates levy significantly it receives a larger share of the pool, depriving another authority of its present share. A suggestion made at the Paparua County Council yesterday that council properties be rated to increase the total rate levy was dismissed by Mr Gray as having minimal effect on the petrol pool. Council properties are now free of any rates. If they were rated, that amount would be added to the total levied, but the copncil would be free to “write off” these rates at the end of the year as “uncollected.” A check with other local authorities yesterday showed I that the scheme is not i novel. Most councils rate some council property to show its true value for renting purposes, but the rates as such are not collected, because in most cases the council would be merely rating itself. Mr Gray said that adding rateable properties to the levy would not change the proportion of petrol tax due

to a council, as it would involve such a minimal amount of money. So councils will have to look elsewhere .to recoup their losses from the petrol tax over the last seven years.

One way is to reduce their own petrol bills. Ironically, this in turn reduces the amount received in petrol tax, as less petrol is sold. But savings in fuel bills would probably outweigh this loss, and benefit the nation’s fuel position. The Christchurch City Council hopes to save 15 per cent on its fleet and other

I oil-using services. Among measures suggested by departments are the use of (more cycles and motorcycles instead of cars, antisyphoning devices on petrol caps to avoid thefts, more efficient car pooling, closer scrutiny of car usage, particularly of vehicles that are (taken home by staff, and more use of buses. A reduction in the temperature of the airport terminal from 21 degrees C to 19 degrees C would result in a saving of 14 per cent of the 62,000 litres of oil used to heat the terminal.