HIGHWAY FINANCE

Dominion, Volume 25, Issue 294, 7 September 1932, Page 11

HIGHWAY FINANCE

‘Crashing Load of Taxation’ PRESIDENTIAL REVIEW North Island Motor Union 175 PER CENT. PETROL TAX Dominion Special Service. Palmerston North, 'September 6. “The time has arrived for the motoring public to press for a reduction in the crushing load of taxation in the shape of petro, tire, and motor vehicle Import duties and fe for heavy traffic and annual licensing,'’ said Mr. W. A. 0 Callaghan in his presidential address at the opening of the annual conference of J: >0 North Island Motor Union to-daj. The speaker remarked that during: the last two years every session of meat had produced some proposal for increasing the burden on motorists. Mr. O’Callaghan said the existing tax and primage duty on petrol was 8.4 d a gallon. This was the highest hgujedn the world,, and was equivalent to 17 a per cent of the declared value of petrol imported, or about 200 per cent when calculated pn an ad valorem basis. The contention of motorists was being ful filled, and the, law of diminishing returns was operating. The imports of petrol for the three months ended Ju y 31 last were 17 per cent below the figure for the corresponding period last year. ■» Less for Road Maintenance. “Originally the petrol tax of 4d a gallon was all spent on reading, but now that the tax is 8.4 d less than -id is left for- highway maintenance, said Mr. O’Callaghan. The speaker added that the Main Highways Board s funds had been used extensively f °r w™' ployment relief work,' while £400,000 was used from these funds for the restoration of earthquake damage—a national liability met from motorists fU Mr.’O'Callaghan said the administration of the Main Highways Board had been very successful. It was to be hoped that no question of interfering with the road fund would arise in the future. Some concern had been felt early in the year when the Government intimated that it would, probably bo necessary to draw on the Main High way Account to balance the Budget. In view of the fact that the alternative was further taxation in some other form, the executive of the Motor Union had acquiesced, with the stipulation that sufficient money should be left to ensure adequate maintenance. It was also made clear that the diversion of this money should be a temporary measure only. False Economy.

“In making a survey of the roads generally, I am doubtful whether they are now being adequately and if they are not, it is perfectly clear that inadequate maintenance is false economy,” said Mr. O’Callaghan. “At the present time the motorists of New Zealand are contributing over £2,000,000 a year in motor- taxation. Admittedly, the major portion has been taken by the Government for general; purposes, but the Main Highways Act is unaltered and ultimately we anticipate that these moneys will be available for their normal purpose.” Mr. O’Callaghan added that motorists bad only one representative on the Main Highways Board, and the agitation for additional representation should continue.