MOTOR TAXATION

Evening Post, Volume LXXXVIII, Issue 25, 29 July 1914, Page 8

MOTOR TAXATION

ALLOCATION OF PROCEEDS THE MINISTER AND THE COUNTIES. DEPUTATION BY DIALOGUE. The principal topic of discussion between the Minister of Internal Affairs (Hon. H. D. Bell) and a deputation which waited on him from thd Counties Association to-day, was the scheme of motor taxation embodied in the Motor Bill which was recently before Parliament. _ "In our opinion," said Mr. Jull, president of the association, "the Bill is distinctly unfair in its incidence, and particularly in the proposed distribution of revenue raised under it." Local bodies, ho said, had to bear the greater portion of the cost of repair to roads used by motorists, and yet did not receive the major portion of the revenue from the proposed taxation. There was a complete distinction between the private motor tax and the public motor tax. fho bulk of the damage done to roads was done to rural roads, whethec by public or private vehicles. HOW THE MONEY WILL BE SPENT, The Minister: The revenue from private motor-cars will bo spent on the roads of the rural districts by an independent board. In regard to trade motor vehicles, and public motor-cabs and taxis, the registering local body receives a certain portion of the proceeds of the tax, and the balance is to be spent within a radius, not yet determined, of the licensing authority. The proposition is open to adjustment ; it may be found that two-thirds is too much. If you think the Bill docs not provide for rural districts as against boroughs and towns, I think you are mistaken. I object to your saying that the Government's pro2>osals are unfair without specifying in what way. Mr. Jull: We feel tho proportionate amount to be given to local bodies under this Bill is not adequate to the amount of damage done to rural roads compared with what is done in the boroughs. In country districts wo cannot exercise Ibo same oversight over speed and loading as can be exercised in the cities. It would be better that the whole revenue from the motor tax should be given, us by a better system of subsidies. REASON FOR DIFFERENTIATION. The Minister: Taxis to a # large extent use the streets ; so does the motor that takes the washing, and we think that a certain part of tho tax derived from those vehicles should go to those bodies which have to maintain the streets principally ÜBed by these vehicles. Tho whole of tho revenue from the private motors goes to the provincial districts. Mr. Jull: Tho scop© of tho private motor-car is very wide. The Minister : You ■ can't take an Auckland tax and spend it on Otago roads. You might make it an island matter, but you can't distribute tho amount exactly as each car is placed. If you.tako provincial districts you take a pretty wide area. •> Mr. Jull : Motorists are only too anxious to extend their tourß wherever they can possibly get roads. The Minister : I should say that not 10 per cent, of the motors range beyond their provincial districts. Mr. Jull : Why not allow tho board to distribute the whole taxt The Minister : But the taxis and commercial vehicles largely use the streetsit would be unfair to give their money, away. Mr. Jull: The board could discri* minatd The Minister: I don't want to bring the board into dealings with the boroughs. Wo have been very careful with this Bill. We have tried method after method and discarded some and adopted others in order to arrive at a satisfactory basis. Only read the Bill and see whehter every one of the methods you suggest does not lay itself open to some objection or other. Members of deputation: We recognise that. Mr. Jull : We don't agree that privato motors should be taxed higher than public motors. HOW MUCH REVENUE! Tho Minister : The public motor has to pay higher fees than the private for tho privilege of carrying passengers. Tho motor-lorry has to comply with heavy traffic requirements and fees. I may say that heavy traffic will be dealt with next year. To deal with it now would only create difficulties almost impossible to surmount. The proceeds of the tax will go to the local bodies not in aid of tho rates, but for special repair of the road* , for use of motors. Mr. Jull : There is a very considerable public opinion as to whether the tax on . motors is an equitable one at all. The Minister : I hope you gentlemen, will make it clear that, all these 'funds will be spent really for motor purposes. It would be different if we were to im« pose a wheel tax or cart tax. Mr. Jull : Could you give us an approximate idea of what be the revenue from this tax? Tho Minister : I ca«'t ; we have tried to form an estimate. I should say that ordinary private motor-car* averaged at £4 tax apiece would bring in about £40.000. We can form no estimate as to tho revenue from trade vehicles. The revenue from tho motor tax in the Old Country had risen from £50,000 to over £500,000 in five yeare, and there were mere motors in proportion to population in New Zealand than in the Old Country. In conclusion, the Minister expressed his intention of going into various questions regarding the Bill, with a view; to improvement wherever possible.