RUMOUR OF INCREASE IN PETROL PRICES

Dominion, Volume 32, Issue 72, 17 December 1938, Page 10

RUMOUR OF INCREASE IN PETROL PRICES

“Would Be The Last Straw”

' MOTORISTS’ OFFICIALS VOICE OPPOSITION

Dominion Special Service.

AUCKLAND, December 16.

A statement that there was a very persistent rumour of an effort to obtain authority for an increase in the price of petrol before Christmas was made today by Mr. A. Grayson, actingpresident of the North Island Motor Union. It seemed incredible, he said, that the Government could even contemplate imposing any additional burden of taxation on motorists. “Such an infliction will be the last straw,” said Mr. Grayson. “Motor vehicle owners throughout New. Zealand are very seriously alarmed already. Over 40 per cent, of the taxation collected by motorists is being used for the general purposes of the Government and is not being paid into the funds of the Main Highways Board. We had hoped that the emergency tax of 4}d. a gallon which was imposed in the depth of the depression would have been lifted during these years of prosperity but up to the present deaf ears have been turned to all representations. We will not be satisfied till justice has been meted out to us in this spect“No less serious,” said Mr. Grayson, “is the allegation that a proposal is being considered for the substitution of a horsepower tax in place of or additional to the petrol tax as a means of deriving extra revenue from motorists; In the past it has been our experience that rumoured increases in petrol prices very often eventuate and, therefore,, motor unions will welcome a statement from the Government that it will not permit exploitation and that it has no intention of granting authority to oil companies to raise the price even Id. a gallon.” A statement that the Automobile Association (Auckland) was giving its strongest support to the action of the motor union in resisting further taxation by increased petrol prices, a horsepower tax or other additional charges or taxes was made by the. president of the association, Mr. F. G. Farrell. The association, he said, had telegraphed to the Minister of Finance, Mr. Nash, and the Minister of Industries and Commerce, Mr. Sullivan, asking for a definite assurance that the rumour was without foundation. Mr. Farrell said that, particularly in view of the approaching holiday season which annually drew thousands of people on to the roads, any increase in motor taxation would be most uncharitable. It would, moreover, hit hardest those who could least afford to pay. If the people’s method of deriving pleasure from the holiday season was to be seized as an opportunity for tax-gathering, lie was sure that thousands of citizens would voice very strong disapproval.