HIGHER FARES AND FREIGHTS

Dominion, Volume 32, Issue 262, 3 August 1939, Page 8

HIGHER FARES AND FREIGHTS

Likely Effect Of Petrol Tax Increase LARGE SUMS HAVE TO BE FOUND Though no increases in fares and freights were announced yesterday as a result of the 4d. a gallon increase in petrol tax, and officers of vehicle owners’ organizations were inclined to withhold comment on what was to most an unexpected impost till it had been considered by their executives, it is freely stated that many commercial vehicle owners will have to charge more for their services. The transport licensing machinery provides a means for individual operators to obtain higher fares and freights. The attitude of private motor-car owners will be expressed at a conference in. Wellington today, to be attended by representatives of the North Island Motor Union and the South Island Motor Union. The representatives will gather in Wellington for two meetings of companies connected with their organizations and the opportunity of conferring ou the tax increase has been seized. Petrol Price Half Tax. The impost has teen a bombshell to officers of motoring bodies, specially since they have been asking for a reduction in the petrol tax. It is pointed out that a person paying 2/3 or 2/4 for petrol, as in Wellington, will pay 1/2 7-8 in tax, of which 6d. goes to the Highways Fund and 8 7-8 to the Consolidated Fund. Service cars are very large consumers of petrol, and the increase in the price of spirit will te so serious to their operators that, it is likely to be reflected in the fares. It has been calculated that the average cost of Hie tax in respect of service cars throughout New Zealand will be from £5O to £6O a year. The change will probably affect some of the smaller bus services fairly seriously. Ojteratprs claim that they have absorbed two increases in the petrol tax without increase in fares and further economies may not be easily made. In addition to the increases in petrol prices, their costs have been raised by the shortening of working hours and increases in wages, so that in many cases they may have to apply for permission to increase their fares. The town clerk of Eastbourne. Mr. C. L. Bishop, said that the increase in the tax would cost the council about £750 a year. This year the council’s buses will run 300,000 ot 400,000 miles, and a large 33-seater bus travels only seven miles on a gallon. Carriers And Taxis. Statistics'relating to the operations of carriers indicate that the tax increase will be an average burden of £35 a truck a year. Operating largely under fixed prices intended to give a fair return in the past, the carriers may have to pass on the whole increase. Their method of doing this will be in many cases to apply to the transport licensing authorities for a revision of the rates. A new schedule setting out the rate for each kind of article that a carrier is asked to transport had been drawn up for Wellington city, but the increase in the petrol tax jvill compel a revision before it can be adopted. The cost of petrol being a comparatively smaller portion of the cost of running a taxi than it is in the heavier classes of transport, the necessity of an increase in taxi fares may be less urgent. However, even there at least 10/- a week more will have to be found in the case of each car. The average annual mileage of a taxi is about 25,000, on which the extra tax will amount to £25.