AUTOMOBILE CLUB VIEW

Evening Post, Volume CXV, Issue 48, 27 February 1933, Page 8

AUTOMOBILE CLUB VIEW

FALLING CONSUMPTION

"The reduction in the new petrol tax from threepence to twopence per gallon is a matter of* satisfaction to the "Wellington Automobile Club," saia Mr. E. A. Batt, chairman of the club executive, in an interview with a "Post" reporter today, "and it shows that the Minister of Finance had paid regard to the representations made by organised automobile associations to him the day following the imposition of the extra threepence per gallon. "We had pointed out to the Minister that the law of diminishing returns would immediately come into operation, and from information available from various sources it appeared that it had already been having some effect," said Mr. Batt. "Even as it is, with the tax at tenpence per gallon, there is bound to be a reduction in the consumption, and the important point is that every gallon less consumed does not mean merely the loss of twopence, but of tenpence, which is now the tax, excluding primage. If the primage is included the tax is IOJd." With regard to the exemption given to fishermen, Mr. Batt said he was glad to seb that the fishermen had been given some relief. Nevertheless, by giving exemption in the case of fishermen the petrol tax was made more than ever a sectional tax, in that it was imposed purely on vehicle owners. The position would have been different if the tax were to be applied to the maintenance and construction, of loads, but this was not the case, in that a special tax.had been imposed on vehicle owners for the' benefit of the Consolidated Fund while certain other users of petrol.were exempted. As a matter of fact, there were hundreds of people making their living by means of motor transport who could probably show as good a case for exemption as the fishermen. It was satisfactory to note that the Minister of Mnance would watch the returns very closely, because, said Mr. Batt, there was bound to be a substantial fall in petrol consumption.