DIMINISHING RETURNS

Evening Post, Volume CXV, Issue 47, 25 February 1933, Page 13

DIMINISHING RETURNS

THE PETROL 1 TAXATION

PLEA FOR MOTOR BUSES

The Government's inability to grant motor-bus proprietors exemption from the increased petrol tax was announced by the Minister of Finance and Oustoma (the Et. Hon. J. G. Coates) in tho House of Bepresentatives this morning. , ' • -Mr. Coates said that if tho negotiations between the Government and the petrol companies were successful, tho result would help some of the users of petrol over their hurdles in the- meantime. He could hold, out no hope at tho present stage for special exemption for the bus companies. He assured the House that the law of diminishing returns would be watched, and if it were found that revenue from the petrol tax was falling rapidly as a result of the additional impost the position would be reviewed. Mr. D. G. Sullivan (Labour, Avon): Was there not a falling ofE in consumption previously, when the tax was increased! Mr. Coates: There was—about 5,000,000 gallons. We are allowing for a falling ofi of 5,000,000 gallons this year. .Mr. K. Semple (Labour, Wellington East): You will get about double that. Mr. Coates: That is only a giiess. We cannot say definitely. Mr. J. O'Brien (Labour, Westland) asked whether the Minister could make any concession to the lorries which, were acting as feeders to tho railways. Mr. Ooatos: No, I can't do it. Mr. O'Brien: I am sorry about that, because requests have been repeatedly made for assistance for the farmer in the backblocks. The farmer near a railway gets his fertiliser carried at a low rate, but the man in the backblocks is penalised.