HIGHER PETROL TAX

Evening Post, Volume CXXVIII, Issue 30, 4 August 1939, Page 5

HIGHER PETROL TAX

CONFERENCE TO BE HELD

(By Telegraph—Press Association.)

AUCKLAND, August 3,

"The increased taxation on petrol amounts to approximately a 20 per cent, increase in the costs of users of commercial vehicles," said the secretary of the New Zealand Road Transport Alliance, Mr. H. J. Knight, when commenting upon the Government's action in increasing the petroi tax or 4d a gallon.

"It will be the subject of a conference among the New Zealand Carriers* Federation, the New Zealand Road Transport Alliance, and the New Zealand Passenger Services Federation in Wellington on August 15.

"It seems clear that this increased cost must be passed on as, in country areas-throughout New Zealana, price schedules based on the previous cost of petrol, along' with .other charges, have been recently fixed, or are in train, while, in the cities schedules have also been determined. None o£ these rates and schedules has taken any increase in costs into account, nor has any margin for such been allowed. It is a long time since commercial motor transport in any of its branches has increased charges,' and the continual absorption of increased costs has undoubtedly reached its limit. "Commercial motor transport offers a service to public based on costs of operation, and the charge schedule must rise in sympathy with increased costs of operation. I am unable to say to what extent charges are likely to be x affected, but in the interim, before the meeting to be held in Wellington, the industry will be able to'determine to what extent, if any, charges will need to be raised to meet the increased cost of petrol."