Board may investigate free staff travel passes

Press, 8 May 1985, Page 9

Board may investigate free staff travel passes

• - of Christchurch Transport Board free staff travel passes may be investigated in an attempt to cut the board’s fringe benefits taxes.

The board could have to pay about $50,000 in fringe benefit taxes this year, and the tax on the 1093 free travel passes issued could be about $44,300, the board’s accountant, Mr G. R. Gibson, told the board’s finance and policy committee yesterday. Union rules meant that the board had to give staff and retired staff free travel passes. The board also gave spouses of staff and retired staff free travel although it was not obliged to do this, Mr Gibson said.

The problem was that nobody knew how often the

passes were used, said the committee’s chairman. Mr C. L. Sugden. “Some people may never use them, others may use them every day.” The tax would have to be paid on the number of passes issued regardless of the use they got, he said. “We should look into this more or we will be asking ratepayers to pay for something of uncertain value."

The committee decided to recommend that the board's management survey travelpass use. Any other action taken would depend on the survey’s results. Estimates The board’s total costs for this year had been estimated at $22,222,700, Mr Gibson said. Operating ex-

penses o.' $17,840 would be the biggest spending item. Ratepayers would be levied an estimated $8,014,000, 11 per cent up on last year.

The board had a surplus of $357,580 from last year which would help make up the costs and keep ratepayers’ share down, Mr Gibson said. The committee decided to recommend the adoption of the estimates at the next board meeting. GST Goods and services taxes could add $1.5 million to the board’s budget for 1986-87, Mr Sugden predicted.

He said he reached this figure by putting a 10 per cent tax on items in this

year's estimates which would be affected by GST. "I think it is important that as a local body we highlight the effect GST will have on the ratepayers,” he said.

“That tax payment will be levied from rates and fares, and so it will be serious for ratepayers and bus users. This impact from restructuring the tax system concerns me greatly,” Mr Sugden said.

The Government had said individuals would get tax relief from decreased income tax, but local bodies did not have that assurance, as their incomes were not wages.

“From a local body point of view, it is a tax on a tax, and God help the taxpayer,” Mr Sugden said.