"NO RELIEF'

Evening Post, Volume CXXVI, Issue 49, 26 August 1938, Page 7

"NO RELIEF'

MOTOR TAXATION

VIEWS OF N.i.M.U.

No relief to motorists of their unfair taxation burden has been granted by the Minister of Transport, says the annual report of the North Island Motor Union which was presented at the conference opening in Hawera today. Recommendations made to the Minister late last year, states the report, were as follows: —That the levy on motor spirit of 4Jd per gallon for general purposes be abandoned; that the 92 per cent, of 6d per gallon assigned to the Main Highways Board be for its exclusive use in roading purposes and subject to no diversion whatever; that an investigation be made into the reasonableness or otherwise of amounts paid to the Post Office for services in connection with registration and licensing of motor vehicles, including the issue of number plates; that 5s be the charge for the first driver's licence, the cost of renewals to be 2s 6d; that the principle of charging heavy traffic fees be reaffirmed and that their collection be undertaken on a national basis, the proceeds being paid to the Main Highways Board for allocation to its own revenue fund and to local authorities on a basis to be determined between them; that if the inspections of motor vehicles called for in connection with the "issue of certificates of fitness are carried out by the Transport Department and the traffic departments of city councils, the funds necessary be provided from the proceeds of existing motor taxation. ROADING DEBT. It was also recommended that amounts for interest and amortisation relating to the roading debt in New Zealand be not charges against funds provided by motor taxation; that either the annual charge ot £61,300 against the Main. Highways Account for past "free" grants be abandoned, or that an amount of £1,532,500 (the annual charge capitalised at 4 per cent.) be given to the Main Highways Board to assist in overcoming the obsolescence of epcisxing highways and to justify this annual charge; that the proceeds of motor taxation be not used to finance rebates of rates or other relief to local body ratepayers; that the present method of specific assignment of the revenue from motor taxation to the Main Highways Fund be continued; that the use of revenues derived from motor taxation, with the exception of Customs duties on vehicles and parts and on lubricating oils, for other than highways purposes be definitely d.bcontinued. "It was not until June 20 last that the hon. Minister replied and then it was to the effect that it was not possible to make an/y alterations." says the report. "This reply is particularly disappointing to the large body of motorists who were represented at the deputation to the Minister. The taxation of petrol for general purposes when, it was first introduced was said to be an emergency measure and the retention of the present system of taxation against motorists is inequitable and therefore unfair. "It is apparent to all users of the road what a vast expenditure is now being applied to road purposes. Throughout the length and breadth of New Zealand roads are being reconstructed and sealed, while large numbers of level crossings are being eliminated, either, by road deviations, by construction of over-bridges, or of subways. An unsatisfactory feature of the financing of these operations is that large sums of money continue to be borrowed on which interest is' payable, thus reducing the amount available each year from current revenue of the Main Highways Board."