MOTOR TAXATION

Dominion, Volume 26, Issue 29, 28 October 1932, Page 11

MOTOR TAXATION

No Change to be Made DECISION ANNOUNCED Prime Minister’s Statement REJECTION OF PROPOSAL The Government lias no intention of abolishing the Highways Fund and paying the proceeds of special motor taxation into the Consolidated Fund as was recommended by the , National Expenditure Commission, according to an announcement made by the Prime Minister, Rt. Hon. G. VV. Forbes, when replying yesterday morning to a representative deputation that waited upon him to protest against the recommendation of the Commission. Mr. Forbes said that Cabinet had given consideration to the Commission’s proposal, but could not see that any advantage would be gained by its adoption. Special funds had not been an embarrasment to the Government, and the motoring public had always placed the national interests first. Applause greeted the statement of Mr. Forbes, following the representations of the deputation which represented the New Zealand Farmers’ Union, the North and South Island Motor Unions, and the New Zealand Counties’ Association. The deputation was introduced by Mr. W. J. Polson, M.P., president of the Farmers’ Union, and in addition to himself no less than fourteen other Members of Parliament were present. The first speaker was Mr. M. H. Wynyard, who represents the motorists on the Main Highways Board. He made it clear, however, that he had no authority to speak on behalf of the board, but that his remarks were in support of the representations of the motor unions. Mr. Wynyard traced the history of the initiation of highways finance. The engineer to the Highways Board, he said, had reported that the highways were deteriorating to the extent at least of £200,000 per year. That should be borne in mind, for it was not an economic proposition to allow the highways to deteriorate. Cost of Deterioration. Speaking on behalf of the Farmers’ Union, Mr. L. Hammond said that any deterioration of the highways now would mean pounds later on. If the recommendation were carried into effect the farming community would have very little hope of any relief of rates at all for the coming season. Mr. W. A. O’Callaghan and Mr. W. G. Walkley spoke on behalf of the North Island Motor Union. Mr. Walkley said the Government could rely upon motorists to do the right thing, but nevertheless they thought it would be wrong to abolish the revenue and construction fund of the Highways Board. The motorists were satisfied with the administration of the fund, and considered it would be a retrograde step if the care of the highways reverted to political control. “A Derating Act" The Main Highways Act is really « derating Act,” said Mr. F. W. Freeman, vice-president of the South Island Motor Union. They had, he added, a right to secure to the public the normal benefits of motor taxation. There had been a general whittling away of the funds available for the maintenance of highways. Mr. G. A. Monk, who spoke on behalf of the Counties’ Association, said that money should be available to local bodies so that they could maintain the roads and thus safeguard the capital invested in them. Mr. A. E. Jull, M.P. for Waipawa, said the commission had not taken the trouble to obtain any information from any of those organisations, whose duty it was to maintain the present system of motor taxation. It seemed that the commission had preconceived ideas, and that it did not want them disturbed by the evidence available. A resolution carried at a conference of Canterbury local bodies and motor organisations on Wednesday, urging that the Highways Fund be maintained and that at the earliest possible date all sjiecial motor taxation be paid into that fund, was then submitted by Mr. Freeman. Reply By Mr. Forbes. Replying to the deputation, Mr. Forbes said he fully recognised its representative character. The motorists had recognised the necessity for stability in public finance, and had always been prepared to assist the Government. Sound public finance should be the first and foremost consideration. If the public finances crashed, other organisations would soon follow. The interest of the country came first, and if it were necessary to break contracts then they had to be broken. The Government had considered the recommendation of the National Expenditure Commission and could not see that any advantage could be gained by its adoption. The Government felt that there would be a greater feeling of satisfaction if the fund were maintained as at present. The fact of there being special funds had not been an embarrassment to the Government, for when the position had been placed before the motorists they had always recognised that the public interests had to come first. The Government did not intend to abolish the separate account of the Highways Fund and pay the money into the Consolidated Fund.