PETROL TAX

Evening Post, Volume CXVII, Issue 55, 6 March 1934, Page 6

PETROL TAX

AND MAIN HIGHWAYS

MOTORISTS' DEPUTATION

Referring to a deputation of the X.OI.TJ. and 5.1. M.U., which recently, urged the Prime Minister to restore the finances of the Main Highways. Board to a better, basis, the secretary of the in a. letter to the Wellington Automobile Club read at last night's meeting of the club, said that it was pointed out-to'.Mr. Forbes that the annual transfer of £.500,000 of.' motor taxation to the Consolidated Fund-left the board with insufficient funds for proper maintenance and necessary'Sionstruction; that road surf aces were* progressively deteriorating;. and the ultimate cost-of restoration was increasing. Mr. Forbes agreed that it was not soundbusiness to let so valuable an asset fall 1 into disrepair. ■ ;." "As you are aware," continued the letter, "a petrol tax was originally imposed in New Zealand for roading purposes and specially earmarked by Act of Parliament for that purpose. Just how fur the Government has drifted from the original intention of the Act is illustrated by the disposition of .the petrol tax in the year ended December 31, 1933, as follows:— Petrol tax collected in that „ >'car 2,088,371 feurtax 104,410 V 2,102,790 Paid to Consolidated Fund 500,000 ltetalned by the Consolidated Fund, 4d per gal. 850,000 Interest on past free grants (51,000 gubsdy on rates 200,000 Subsidy td boroughs (S p.c. • of the tax) 06,000 ■ 1,707,000 Left for Main Highways Board 485,780' The Minister, continued the writer, had said that the Government appreciated the attitude of the motorists in accepting without complaint the Government.'s action in taking the £500,000 at a time when it was urgently needed for national purposes, and lie had promised to consult the Minister of Finance with the obicct of seeing whether the Government could this year meet the motorists' wishes and restore 11.0 £500,000 to the Main Highways .Board. .