MOTOR TAXATION

Evening Post, Volume CXXII, Issue 82, 3 October 1936, Page 11

MOTOR TAXATION

GOVERNMENT PLANS

NATIONALISED HIGHWAYS

While recording that there has been no reduction in motor taxation the annual report of the Automobile Association (Wellington) states that one pleasing feature of the Government's financial proposals is that there is to be no diversion of motor taxation from the Main Highways Account to the Consolidated Fund this year, nor is there to be a reba.te on rates to local authorities out of motor taxation.

The report refers to the fact that the North Island (New Zealand) Motor Union decided at the last annual conference to carry the matter further and ask the Government (a) to grant a reduction in petrol tax; (b) for the abolition of the charge against ' the main highways account for subsidies on rates which are paid to local bodies annually; and (c) that the practice of charging interest amounting to £61,300 per annum on past free grants from the -Public Works fund to the main highways account shall be discontinued.

"The Minister of Transport, when taxation matters were being discussed with him recently, indicated, in connection with a reference to a single tax, that the Transport ' Department is undertaking a comprehensive inquiry into motor taxation generally," the report continued. "The executive refrains from .commenting further while the question is sub judice, except to express the' view that a single tax which must needs' be- a petrol'tax would operate unfairly on a certain section of motorists. A PROGRESSIVE MOVE. "With the exception only of the original Main Highways Act itself, the proposal of the Government to nationalise approximately 4000 miles of arterial highways and place' them under the control of the Main Highways Board is the most progressive move that has been made in our national roading policy. As a matter of fact, the Government's proposal, with one or two small exceptions in regard to finance, coincides with a suggestion made by your executive to the North Island (N.Z.) Motor Union about three years ago. Your executive has seen for some time the wisdom of nationalising ' the arterial highways with its resultant uniformity of construction and maintenance to the advantage of all road users. While the 4000 miles of main highways to be brought under national control form about 10 per cent, only of the rural roads in the Dominion, they, carry approximately 80 per cent, of the traffic, and the requirements of this large proportion of the Dominion's traffic can only be met by a properly planned highway constructiou programme formulated by a national body which from its experience and the expert knowledge available, to it can set a standard of construction, and, maintenance that will reflect ifself in the safer and more economical operation of motor vehicles."