MAIN HIGHWAYS

Evening Post, Volume CVI, Issue 36, 11 August 1923, Page 13

MAIN HIGHWAYS

MOTORISTS AND MOTOR

TAXATION

MEETING OF DELEGATES.

A meeting of delegates of motor associations of the North and South Island to consider the question of the method of taxation of motor vehicles in regard to the revenue required in connection with the main highways scheme, was held in Wellington yesterday. The delegates also met with the view of coming to an agreement as to the future harmonious working of the North and South Island Unions in respect to legislative matters. Present: —North Is- ■ nd: Messrs. C. M. Banks. L. A. Edwards, A. Grayson, I. V. Wilson. South Island: Messrs. F. W. Johnston, J. S. Hawkes, A. E. Ausell, and J. L. Passmore. Mr; H. M. Wynyard, motorists' representative on the Main Highways Board, presided. Mr. G. C. Godfrey, Assistant Undersecretary of Public Works, said that the Main Highways Board, at its first meeting, had under consideration the matter of provision of moneys requisite for the maintenance of roads proclaimed as main highways. The existing resources of the revenue fund from which a maintenance charge must be paid, consisted of £35,000 from the Consolidated Fund and Customs Duty on tires, which so far had yielded' about £9000 a month, or, say, £110.000 per annum. In all probability the whole of the £35,000 would be required for maintenance of main roads through sparsely-settled country, ■which were at present maintained by the Government. A first charge against tire tax would be the payment of interest and sinking fund on loans raised for construction and reconstruction works. Assuming £300,000 to bo raised each year, approximately £20,000 would be required to cover each year's loan, and the sum required for this purpose would be a progressively increasing one. The Act required that plant and machinery must be paid for out of revenue.' The reason for that-was the short life of the plant and machinery, and the long life of the loan. It was difficult to estimate what sum would be required for this purpose, bufc it would be considerable, say, £30,000 a year until a satisfactory plant equipment was established. In addition, all other expenses properly chargeable to revenue must be provided out of revenue account. It would be seen, therefore, on this basis that a sum of approximately £60.000, probably less, would remain. Against that sum the board had a statutory obligation to pay a subsidy of £1 for £2 towards the cost of maintenance of all roads declared main highways, other than thoße previously referred to. It was obvious that this sum was entirely inadequate. The Act contemplated the imposition of a motor vehicle tax, and since the tire tax was to be hypothecated for loan purposes, the motor vehicle tax was intended to care for road maintenance. The board pointed out that while capital expenditure may amount to as much as £800,000 a year (£200,000 public works fund, plus £300,000 loan, plus £300,000, local body contribution), the provision for maintenance coste, in the absence of motor vehicle taxation or the i provision of some "other equivalent source of revenue, was entirely inadequate to enable the board to discharge its statutory obligations. \ , After some discussion, Mr. L. A; Edwards moved that the registration fee be fixed at £2 a car. . Mr. C. M. Banks seconded the motion. ( The following resolution was ultimately adopted, on the motion of Mr. Ansell:—"That on Mr. Wynyard's assurance, and that of the N«w Zealand Motor Association, that they will oppose any attempt to increase the following rates under the Motor Vehicles Bill, viz £2 for motor-cars, and 10s for motorcycles, thig to- include annual registration and annual license fee, and will Bupport any further revenue required for purposes of the Main Highways Board being obtained from, an increase of tire-tax, the South Island representatives accept the proposal that the above "rates be in addition to the initial registration fee for car or cycle." _ The conference also passed a resolution in favour of the police having charge of the licensing. and registration of-motor vehicles and the collection of fees; and, subject to the above resolution, that the Government be asked to > expedite the passing of the Motor Vehicles Bill this session.