NORTH V. SOUTH

Evening Star, Issue 19724, 26 November 1927, Page 11

NORTH V. SOUTH

Indignation Over Petrol Tax Otago Mistrusts the Government Refusal to Accede to Dictates The Minister is not playing the game with us. We are only asking for our rights, [f Mr Coates and the Government defy us we should be equally insistent and refuse to accede to their dictates. The motorists of the South Island are not prepared to trust the Minister of Public Works or the Prime Minister. If Mr Williams has no intentions of robbing the South Island all he has to do is to give us our just demands. It is becoming increasingly unfortunate that the North and South are being pitted against one another, and it is becoming more evident every day that such action as now proposed by the Minister is accentuating the trouble and making it all the more difficult to control. If the opulent and brainy cow cocky of the north finds it too great a strain upon his pocket to keep his poor cousin in the south, let him cut the painter and leave us to manage our own affairs. We did it in the old days when we had to find the mass of money to keep the North Island from being pushed into the sea by the hostile Maori, and we can do it again and give them an object lesson in economical Government.

Such were the emphatic statements made at the meeting in the Town Hall last night when the proposal of the Government to make no definite allocation of the petrol .tax was discussed. The meeting was representative of nearly every local body in Otago. Condemnation of the attitude of the Government was made. The North v. South issue was prominent, and it was evident that a breakaway from the north is being talked about with more seriousness than in the past. The majority of the speakers declared that the Government was taking the money provided by the south to help the north. The delegates as a whole showed a lack of confidence in the Coates Government, and one speaker urged them to record their opinions at the ballot box at the GencralElection. The conference passed strong resolutions opposing the Government’s attitude, and decided to organise a deputation representative of the whole of thb South' Island to go to .Wellington. The Mayor (Mr W. 13. Taverner), who presided, expressed his pleasure at such a representative gathering in response to the invitation sent out by him in conjunction with the Expansion League and the Motor Club. They were all aware of the purpose of the meeting. It was a question of a fair deal, and in the opinion of the motoring public a fair deal did not exist to-day. The primary purpose of the meeting was to make a united expression of feeling of Otago in the matter of the allocation of the petrol tax. It was becoming increasingly unfortunate that the North and South were being pitted against one another, yet it was becoming more evident every day that such action as now proposed by_ the Minister was accentuating the position and making it all the more difficult to control. Tho attitude _ of the motorists generally, and particularly that of the Otago Motor Club, on the distribution of the petrol tax was genera!' throughout tho South Island. The Otago supporters, of the petrol tax had thought that they were going to get an adequate and fair distribution of the taxa+iou; but they, it seemed, were wrong. The Minister of Internal Affairs bad introduced into the argument tho distinction between the revenue of the South and North Islands, and had pointed out that those of the South were less profitable. It seemed to him to be quite extraneous to the subject under discussion, and the railways were n matter tlie meeting was not in a position to discuss. Tlie first speaker was Mr A. E. A u- I Fell (president of the Otago Motor Club and the South Island Motor Union), who thanked the'mayor for the interest ho was showing in the affairs of tho South Island. “ M o consider that this is not now a motorists’ fight, hut a fight for every inhabitant in the South Island.” (“Hear, hear.”) Ho then moved—- “ That this representative _ meeting of South Island interests, including motorists, city, borough, and county ■'Mined delegates, members of _chambers of commerce and commercial associations, progress leagues, and other iiiiblic bodies protests most emphatically against the refusal of _ the Government to recognise the principle of allocation between the two islands of tho proceeds of tho petrol tax on the sumo basis as provided in the Main Highways Act for the division of the revenue derived from the tyro tax and registration fees, and pledges itself to ■maintain tho agitation until its just claims are satisfied.” FIVE-YEAR-OLD FIGHT. A good deal of the correspondence which had been passing between Wellington and club had appeared in tho Press. The demand for the allocation of the petrol tax was a just one. At the commencement of introduction of legislation for improving the highways the motorists had asked that the Government should allocate the taxes received in the proportion of the number of vehicles in each island. The agitation had been started because tho motor vehicles were wearing out the reads and the motorists considered that a fair allocation would be the one suggested. As to-day, they were fighting when the tyre tax was introduced, against the money going to tho North Island. He had looked up the papers concerning the early agitation in regard to highway legislation, and had Found that five years ago exactly the same fight as tho present one was being waged. Ho had been brought prominently before the Prime Minister when highway legislation was being introduced, and Mr Coates had then agreed that the allocation as suggested by the South Island was a fair proposal and ho had promised to introduce it into the Highway Act. The argument used thou was that as the motorists were wearing out tho roads they should pay for them. But the motorists of tho South Island had not been responsible for the islands being separated by Cook Strait, and they had considered that their tax should be spent in the South and tho North Island should be prepared to pay for its own roads. It was quite evident t hat the South had a good ease to give ' be public. They were prepared to pay for the roads they were wearing out, but they were not prepared to pay for North Island roads which they had never seen. (“Hear, hear.”) ■Two months ago_ he ■ had had it. two boors’ interview with the Minister of Public Works on tho Otago better ' trading scheme, upon which the Minister had looked favorably. Later ho iiad' attended a conference between North and South Island motorists and a representative of _ tho Highways Board. The introduction of the petrol tax was fully dismissed, and, to the credit of the motoring interests generally, they had been prepared to pay higher taxes to do justice to tho counties and to provide better roads. There had been no hint then from any quarter that tho petrol tax would not bo allocated on the same principle as the tyre tax. That, perhaps, might have bssn. "fioliJics* but some intimation

should have been made by. tho Government that the tyre tax was rotten and that it was to bo thrown overboard. Tho intimation was duo to tho motorists who had supported and assisted the Government. Immediately tho Government’s proposals had been made public, telegrams of protest had been sent to Wellington. He had already published a criticism of the Government’s actions, and he intended to deal largely with tho question of where tin money was being spent. A great number of legislators thought the Government's proposals would prove right, and had advised the motorists to trust the Minister. A CANDID DECLARATION. 11 To bo quite candid, wo are not prepared to trust tho Minister. (‘Hear, bear.’) it any of you gentlemen go into a shop and' pay for a_ purchase you expect to receive it. You would not go cap in hand to tho proprietor and- say you have paid for an article and would he kindly hand it over. That is tho attitude tho Government expects us to adopt. Wo have tho right to demand that the money should bo spent on our roads. When the question cam© up in the House, Mr T. K. feidey made himself famous. Ho has assisted us very generously, and I would pay tribute to his courage and work in regard to the South Island. (‘Hear, hear.’) Wo were lulled into a false sense of security in thinking that the allocation would bo the same as the tyre tax, and suddenly wo received a wire from Mr Sidey asking if wc considered it fair that tho allocation should be left out. Tho club bad replied expressing its surprise at tho move, as, at tho conference in Wellington, wo understood that tho Government still recognised the principle we had loufjlit for, and which they had recognised. When Mr Sidey brought tho matter up in tho House our Irieud tho_ Prime Minister turned to Mr Williams (Minister of Public Works), and asked him very nicely: ‘ Have you any intention of robbing the South Island? ’ Mr Williams replied ‘ No.’ I f Mr Williams has no intention of robbing the South Island all be has to do is to givo ns our just demands. Thou, in the Upper House. Sir Francis Bell said it was very likely that tho necessities of the South Island were not so great as the needs of the North Island. “And those gentlemen expect us to Irus-j them! Mr Coates’s remarks have a very important bearing on the whole question of where our money is to go. He said it was not a question of North v. South, but a question of the counties overburdening themselves.” Mr Anscll said he was pleased to say that none of the counties in the South Island had gone to that extent, and the motoring associations had not encouraged any county to overburden itself on the motorists’ behalf. They had intimated they were prepared to pay their lair share, but in the North island the motorists had taken quite a different view. The contributions of local bodies for tho year ended March 31 last had been: North, £225,042; South, £30,818. It seemed that tho Nocth Island local bodies had borrowed so extensively that tho taxes had proved beyond tho productive value of the districts, and tho only remedy had been 10 lift tho money paid in taxes by tho South. Tho principle of assisting anv county putting down a highclass road with a special subsidy was quite sound, but if the roads were built in the North Island tho money should not come Irom tho south. The Minister wanted to spend tho money from the petrol tax at his discretion and where he chose, and the factor of North Island bodies which had borrowed too heavily and were up against it had to bo watched very closely. Since the inception of the Highways Act in 1924 tlie total amounts of construction moneys spent had been:—North, £997,000; south, £251,000. Under the Highways Act there were two funds—revenue and construction. The revenue fund bad to be apportioned according to the number of motor vehicles in each island, and as far a-s the Highways Board was concerned he was quite satisfied the board had carried out the agreement honorably. In regard to construction _ there was nothing in the Act to limit tho amount of money spent in the North Island. If the Government desired, tho whole amount could b© spent in tho North. Therefore, where wnuld ( tho petrol tax revenue go to if the South Island allowed the present legislation to stand? Those figures showed that the South could present a good case in asking for a proper allocation of the tax, as the Ministers themselves had indicated that they wanted tho money to go to the North Island. “ PIFFLE ” BY MR STEWART, Ho hn-d received two telegrams from Mr Downie Stewart. The first one read as follows Your telegram received. If principle of allocation between North, and South Island dealt with as suggested by you I am informed tin’s may prejudice South Island if at any later date it becomes necessary tn spend more than its proportionate share on South Island. Further, new Act provides that percentage of revenue collected from whole New Zealand shall be paid to cities and boroughs. Would you suggest that this percentage should for the South Island boroughs and cities be computed only on revenue from South Island? If principle of allocation applied it will lead to demand by North Island that South Island should be separately taxed to pay its loss on railways, which earn only 2\ per cent, as compared with 6 per cent, in North Island. When Customs tariff was before Parliament North Island agreed to such important items as wheat and flour duties which ’ only benefit South Island. There are other similar problems which will lead to increasing difficulties if South Island is to be treated as politically ns well as geographically separated. I have alrcadv informed you that Minister of Public Works lias promised me that justice will be done to South Island, and no doubt your ro-

preservatives on Highways Board will watch your interests.” , To this ho had replied that the petrol tax was a special tax for a special pur•pose, and had nothing to do with tho railways. Tho railways wero a dominion matter, and all funds wore derived from the Consolidated Fund. This was a case where tho motorists were prepared to take a share of providing for tho maintenance and construction of roads in proportion to the amount of wear. How Mr Stewart could bring such piffle forward in reply ho could nob understand. (Applause.) The Minister of Internal Affairs had allowed his judgment to he submerged by the dictates of party. Mr Stewart had telegraphed as follows that day:— “Your telegram ro petrol tax received. Further to my previous telegram will you please also read this telegram to tho public meeting. I am advised that oven tho division of tho tyro tax in tho past has given tho South Island more than its share, because owing to relative numbers of various types of vehicles tho tax actually earned in tho South Island was not nearly ns great as the proportion should ho by direct numbers, Estimated, this has already involved overpayment of about £BO.OOO to the South Island. (Mr Macdonald: Absolute rot.t Am also advised that your statement that South Island moneys borrowed for North Island is not correct. Maintenance subsidies last year, less than 1J to 1 to tho North Island, but 2 to 1 to the South Island. Similar ratios since inception scheme. Construction figures work out 2 to 1 subsidy to North Island. but sto I South Island. You will understand that my own pressure of work prevents mo from personally investigating information furnished me, but my opinion is that to force the issues between tho North and South may involve the South in making up loss of £350,000 on railways, and logical conclusion would require all accounts to be separated.” A VERY POOR CASE.

It Mr Downio Stewart and Mr Coates have no better arguments to put up against tlie ease we are presenting. they have a very poor case indeed,” declared Mr Ansell. The Government had condemned the South Island motorists for asking that the tax should he paid in relation to tlie number of vehicles, but the following .week had introduced another Bill asking that the tax should be paid in relation to the number of people in the cities. That was consistency! Mr Downio Stewart had replied that the figures given were not correct. Mr Ansell said lie hoped they were not. A conference, called by tho Highways Board, had been held by tho motorists and counties at Christchurch. Dissatisfaction was expressed with tho progress made with reading, and after the conference lie had expectations that progress would quicken. He had asked Mr F. W. Furkert (chairman of tho Main Highways Board), before the conference opened, whether ho would give an assurance that the South Island was safe over the £350,000 lying to its credit in tho Highways revenue account. Mr Furkert bad advised him that none of the money was being used for the North Island. Ho had been prepared then, and still was prepared, to accept that statement. But Mr Furkert had said that where there was smoko there was fire. Tlie Minister had told the hoard that tlie Government was not prepared to borrow the usual amount of money for construction, and had suggested that the amount to the credit of the revenue account should bo transferred to the construction account. The South had asked why £324,000 should bo lying in Wellington while its roads were in such a deplorable condition. Once tho money was transferred to the construction account the Minister could use it at his discretion. That was dangerous. Mr 11. L. Tapley had written that unfortunately the position was that the majority of the members of the House represented tho North Island. The position, said Mr Ansell, was that tho South Island was up against tho question of whether might was right and whether the South would get no justice, simply because tho majority of tho members in tho House represented the North Island. The South would ho doing wrong if it did not agitate with every ounce of vigor and show that Mr Coates was not endowed with super-powers.

“ I am quite certain,”, concluded Mr Ansell, “ that wo in tho South Island must push strongly to obtain justice, and let_ Mr Coates see that, even if we arc in the minority, we have rights —rights which wo insist upon having honored.” (Applause.)

GOVERNMENT BY DEPARTMENTS.

Mr S. B. Macdonald, president of the Otago Expansion League, seconded the motion. Ho read apologies from a number of mayors or boroughs, and said that practically every county and borough in Otago was represented at the meeting. There was no doubt that the chickens wero coining homo to roost so far as Parliament was concerned. He instanced the legislators who had brought down laws in the past few years. The Civil departments of New Zealand were the masters of Parliament, instead of Parliament being the master of the Civil departments. Trie was prepared to say that the allocation of the petrol tax had been refused by the Public Works Department and Highways Board, which had told the Government that they would not take the allocation. The Government had' taken the medicine from its servants quietly. It was for the South Island to say whether it would take what the Government Departments decreed. They wore asked to trust the Minister of Public Works. They trusted Mr Williams as a man, as he was known as a man of the highest integrity and of his word. But in asking the South Island to trust the Minister of Public Works the Governn/mt asked them to trust a man of unknown quantity, for the Minister of to-day might not ho the Minister to-mo-w—'. The South wanted to know where it stood. The last Financial Statement showed that nine-tenths of the expenditure out of the Consolidated Fund was devoted to the North Island, and yet they were asked to trust the Government to give d fair deal in the allocation of the petrol tax revenue. If they did not oppose the proposal they would deserve all they got, and the South Island would become a back number. Of course, Mr Williams did not intend to rob the South Island, but the Highways Board was going In have a finger in the pie. The hist Financial Statement showed tint the percentage of expenditure by the Highways Board was; North Island 73.12, South Island 20.82. Yet they had been asked to trust the Government. The figures produced iu the Statement were quite illuminating. Mr Macdonald road the figures, and said that they showed the hardships under which the county councils of the South Island wore working. He had been amused at the telegrams which had arrived in Dunedin from Wellington. The Expansion League had received similar telegrams. One stated, in effect: “Shut up about the petrol tax and we will give you another member on the Highways Board.” Of present nine-tenths of the Highways Board represented the North Island, and the proposed concession would mean that the Sopth would have two members, who would have as much chance of doing anything for the South Island as an ice ring would have in h . (Laughter.) The telegram on the railways. question from Mr Downie Stewart was, most remarkable. “I would like to ask Mr Stewart, and also the Ministry, who built the railways in the North Island forty years ago? The South Island,” declared Mr Macdonald. Up to ten years ago the North Island roads and harbors were provided by the South Island. They say that much pi; the income tax comes from the

North Island. Let them produce the figures, and then ivo will believe them. They also say that much of their income is obtained Irom the Eoith Island. Again, let them produce figures, and we will believe them. Most of the manufacturing is centred in the South Island, and therefore the greater profits arc centred ;n the South, and the Government gets greater revenue from that direction. Speaking of the tyre tax, Mr Macdonald said that figures could bo obtained to prove anything, and the Government said the South Island was robbing the North Island of £BOO,OOO. That was problematical, as the North was robbing ■ the South all the lino. Their own statements proved that. Enormous sums of money were being spout in tho North.on hydro-electricity installation, but the Government, apparently, did not realise that tho money was being guaranteed by tho whole of tho dominion. With the exception of til© Lake Coleridge station, alt the power plants in tho South Island had been guaranteed by the people in tho particular district; "if there was a loss, llio taxpayers paid from their own pockets. If tho 'Dunedin Corporation had a loss on its amenities and utilities, llio people faced the loss. Dunedin did not go to .the North Island and ask the people (hero to pay. Ard the South Island was not going tc help the North. If expenditure was demanded by the North, they should be ho left to stand on their own feet. It would not be sufficient for tho South to remain idle after passing morions opposing the action of cite Government. The Expansion League always refused to take “no" for an answer. It was for the South Island representatives to say whether their mom'v was to bo spent n tbo North or South Islands. If the Government docs not be reasonable,’ 1 said Mr Macdonald, “Well, gentlemen, we will have to ask you to say what you think of them at tho next ballot.”-—(Applause.) Mr W. S. Thompson, chairman of tho Clutha County , Council, said ho was sure that all.counties heartily endorsed the motion.

Mr H. Halliday, a member of the Motor Chib’s executive, said the motoring taxation had followed' on the expressed wish of the motorists to bo taxed so as to help the county councils in their reading problems. In the first place, motorists had asked that two highways boards should be created, but they had had to take, instead, the allocation on the number of cars. Sir Coates was then Minister of Public Works, and ho had stated that if experience showed that the working of the Main Highways Board was not satisfactory, he would give his word of honor that two boards, one for each island, would ho created. Ho had not seen one word of complaint on the taxation from the North Island; the inference was clear enough. The North Island knew very well that they would get nine-tenths of the taxes. The Government was relieving the North Island districts which had over-borrowed by giving them the petrol tax. Only those counties in the South which had overreached themselves would get anything; and that would ho nil. Mr Halliday disagreed with the opinion expressed that the Highways Board was at the hack of the Government’s move. He failed to have any faith in the Minister of Public Works. THE MINISTER’S DISTRUST. The petrol tax would produce more revenue than the tyro and vehicular taxes, and as the tyre tax was being spent in the North Island, Mr Halliday asked how much the South would get from the increased taxation. Both the vehicular and tyre taxes had been discussed fully by motorists before becoming law, but the petrol tax had been rushed, although representatives from the North and South Islands’ motoring bodies bad met previously in Wellington and had received no intimation of the departure from the Minister. The Minister had shown distrust of the motorists in not giving some idea of his Bill. Now the Mill-, ister asked them to trust him. “ Wosay wo cannot trust him and we arc not going to trust him,” exclaimed Mr Halliday. The transfer of the funds of tho revenue account to the construction account of the Main Highways meant that tho Minister could spend the allocation as he liked. Tho money would lie spent in tho North Island, and if the Minister refused to repay the transfer they would not see th;* money again placed to the credit of the South Island. Mr Downic Stewart’s telegrams were jocular. The railways iu the South Island had been built by the Provincial Governments and later handed over to tho General Government; yet, asked Mr Halliday, how much of the capital cost had been returned to tho South Island? Many of the roads were in the same order Hday as when they had been handed over by tho provinces. The South Island was not prepared to go in for tho heavy loan borrowing being indulged in by tho North Island. .In its conservative way the South spent money only whore necessary. He believed that all the petrol tax revenue would be spent iu the North Island. Support for the motion was given by Mr M. Stevenson, representing the Carriers’ Association, who, however, did not think tho proposal went far enough. Otago should send Mr Ansell to Wellington, and ho should not leave Wellington until ho received satisfaction. (Laughter.) The mere .sending of the resolution of protest would he as water on a duck’s back, for the telegrams sent from Otago during the past two weeks bad not been sufficient to shake the Minister. The resolution would not move the Minister cither. The carriers were to blame for having the petrol tax introduced. In 1925 tli 3 association had waited on the Minister. The association had bon anxious that the tyre tax should bo abolished and a petrol tax substituted. The association bad been given an assurance by the Minister that there would be only one tax, but the promise had not been kept. Under the petrol tax the 103,739 motor cars would pay £432,471, and the 21,033 commercial vehicles would pay £280,146. Worked out on a 5,000 mile run for the year, the payment per car would be £4 3s 4d, and for commercial vehicles £l3 6s Bd. If the petrol tax allocations were made o.i a 60-40 basis, the South would receive £285,064, while the North would claim £427,590. On these figures, he failed to see why Mr Coates wanted the petrol tax to ho on a different basis to tho tyre tax. Ample revenue would be provided. If the present taxes wore retained, tho revenue would be £1,237,000. No mention had l>eeu made of tho Hutt road scheme, which amounted to £13,500. It was purely a local tax. All fees hut the petrol tax should bo abolished, and local bodies should be precluded from raising traffic foes by by-laws. . To attempt to reconstruct the Main Highways throughout tho dominion out of taxes was only playing with tho goodroadiug question. The money should be raised by loan, and tho interest and sinking fund should be provided out of the taxes raised. Only by those methods could motorists expect to see progress. The whole question of motoring legislation should bo gone into, and until the users of the roods insisted on some better policy by (be Government they would not get far. Money bad been spent by the motorists on the Main North road, yet what were they going'to receive back? The Government’s hand should be forced. SUPPORT FROM THE COUNTRY. Speaking on behalf of the country borough, Mr J. P. Walls (Mayor of Mosgiel) said that the experience of his borough would be largely the experience' of other towns. Mosgiel felt that it had been penalised throughout. The legislation had not been honored, and Parliament had fallen very short. Tho country boroughs supported the motion of protest most heartily. The allocation of the petrol tax to the boroughs was 4 per cent. That day ho had listened to a discussion on a local body, it had been stated that the

local traffic was 4 per cent., yet tho county was to ho allowed 75 per cent. That was not a fair deal to tho boroughs. “Wo feel that although we had a grievance before, we have a bigger grievance now,” said Mr Walls. “Our small finances have been practically robbed to make the central street lit for motor traffic.

“Tho cpiestion interests the motorists, hut it interest tho county councils even more,” stated CV Benton, chairman of the Bruce County Council, who thanked tho Expansion League and Motor Club for calling tho meeting. If the counties did not receive the tax the rural ratepayers would bo called upon to pay for the roads. The Expansion League always assisted the counties. It was impossible for the county councils to keep tho roads, and the Motor Club was now supporting tho local bodies heart and.soul. Every member of tho Bruce County supported the present light, AY hen tho petrol tax was passed ho thought the county councils would have a much easier time, hut they wore no further on. They would have to do their utmost to force the Government to allocate tho tax on the. same basis as ibo petrol tax. “I am satisfied,” said Mr Benton, “that every motorist in tho South Island is prepared to bo -taxed so -long as- he receives tho benefit of the money being spent on the roads. If the money goes to the North Island it will certainly not he spent on our roads.”

A new note in tho proceedings was struck by Mr 11. AV. Hall (Mayor of St. Hilda), who said ho believed there was no greater supporter of the South Island in the House than Mr Downio Stewart, who, tlie.y must conclude, had good reasons for defending tho Government. At the same time, the South Island had the right to expect that tho amount of money contributed by motorists should be spent according to the number of cars in each island. As to the transfer of tho South Island credit _ from the revenue to the construction account, the South had been most dilatory ■ in claiming its money. Yet they bad tho right to demand that money contributed by the South should bo spent in the South. Ho was rather loath to think that it was tho Minister’s intention to take undue advantage of the South Island, as, if tho South had a programme of work to carry out tho money could be obtained from AVcllinglon. The Government would have to show good reasons in reply to the resolution, and as citizens thov would admit that the course proposed by the Motor Club and Expansion League was a proper one. INIQUITOUS AND UNWARRANTED.”

Mr William Wright said .they were being imposed ux>ou by a piece of uuiquitous and unwarranted legislation. The early settlers had laid down the roads and the principle, still apparent, as then, was that the users must pay for the roads. But now the roads were not being used by the residents in the district. Ho instanced the Green Island road, tho cost of which had been provided by t}io various .surrounding local bodies. If the Minister’s word wore to bo .trusted lie slioujd .make a proper allocation. The Minister of Finance (Mr Stewart) hud put forward some specious arguments, but the petrol tax was being imposed for a special purpose. Taxes at present raised lor roadiug were insufficient, and in money was badly needed tor tho roads. That strip of water, Cook Strait, bad separated the aims and ideas of the motoring community, and the South Island Motor Union had been formed. Tho tight was now one between the north and the south. Tho 'South Island had done very well in the way of providing roads and railways, and had filled the streets of the North Island with branches of businesses started iu tho south. That was .probably tho reason why the south paid so much of the income , tax. The north was taking away shipping and other interests, and now tho petrol tax was to bo spent to pay for the borrowing of the'northern men or for the roads they wanted. Every motorist in tho South Island should demand hi* rights, and every Member of Parliament should be shaken up. to obtain those rights. (Applause.). Mr Morrison said, tbo .Peninsula County Council associated itself with tlie move. The South Island must stand united. .Roads of modern, requirement must bo obtained, and fair play would have'to bo demanded. “I am sure you can rely on (be support of thy country as well as tbo city members,” said Mr Morrison. “We are with you to the last ditch.”

“The Minister has given very good reasons for the action, but there is only one reason. Ho wants tbo money for tbo North Island,” declared Air .T, L. Passmore, to a chorus of approval. II the Government bad intended to spend Ibe petrol tax iu the same way as the tyro tax why had that not been stated when tho Bill was introduced? They bad left it out because they wanted to get tbo money for the North. Island. Further support to the motion was given by Mr A. Eraser (Mayor of West Harbor). Ho approved of Air Stevenson’s suggestion that someone should be sent to Wellington to push the claims of the South, and no better men than Air Anscll and Air Macdonald could bo chosen.

Air James Taylor, president of the Dunedin Chamber of Commerce, said tho chamber had recently passed a. resolution of protest on the same linos as tho motion before the meeting. Although ho felt that they had to accept the word of the Minister of Public Works that justice would bo done to both islands, the personnel of a Alinistry might he changed any day, and the successor of the present Minister might not foot inclined to honor Hie promise made now. The South was right in asking that the tax should be allocated in the preper manner. BACKBLOCKS SETTLERS,

Air James Ritchie, chairman of tho Otago Comities’ Association, said that body had already taken steps to place its objection before the Minister, and had also written, to tho Members of Parliament urging them to do their best to allocate the- petrol ta>; on tbo same basis as the tyre tax. “We know very well as county representatives that the Minister is an honorable man, but we do not think it is fair that ho should be put in the position of judging between the two islands. Wo think it should bo laid down hard and fast (hat those who provide a special tax for a special purpose should he allocated a portion of tbo revenue. ’The county councils’ first duty was to provide decent roads from the settlers’ homos to tho nearest railhead. The counties bad every sympathy with (he motorists, and lie admitted they should have lifted tbo money lying to Their credit in the highways revenue account. But they had % duty to the struggling settler in the hackbldcks; lie had a mud road and perhaps did not have a. car, and bo did not sco the railway. Those wore tho men tho counties favored. Tho counties were to receive a share of money to bo spent in tho hackblocks, but ho did not consider it fair that the allocations should be left (o the Minister. The .Highways Board had given them fair treatment in tho past. Unfortunately tho county councils iu the South Island had. not the spending power of the North Island counties, and had been unable to.claim tho subsidies. Tho counties declared that they were not going to borrow niouey to provide roads for passing motorists, and saddle the ratepayers while ■the. settlers' wore struggling along with mud roads. He promised that tho Counties’ Association would do its best to see that the petrol tax was allocated on a proper basis,

In reply to Cr Mitchell, the Mayor said lie was not aware that the Works Committee of tho City Council had discussed the tax. hut ho was pleased to hear that they had taken action. Ho had not tho slightest doubt about, the opinion of the city councillors on the question,, They would support the

conference all the way. As a matter of fact, it would bo very hard to find anybody in Dunedin who did not support the motion. Ho read a letter from tho Kaikorai and Boslyn Hatepayers’ Association supporting the mooting, and said ho was gratified that such a representative meeting was unanimous. Replying, Mr Ansell said Mr Ritchie had raised a very important point, which tho motorists had been stressing. Tbo county authorities in tho South Island had objected to largo loans being raised for highways, and he congiatnlated them on that stand. Tho motoring association had always made objection to raising _ loans, as it considered tbo users of the road should pnv a fair share. One of the reasons the South Island had agreed to tho petrol taxation was that counties in tho South should not bo required to raise large loans. The present position was that they might be belter or worse off than before. Mr Macdonald: You are worse olt Mr Ansell said the Government bad now, placed a brick wall before their window. Tho Minister was not playing the game with them. Ho had at his disposal a sum of money in the vicinity of £500,000 in the construction fund, and GO per cent, of the tyro tax and CO per cent, of the petrol tax were going to the North Island. The Minister could give the South Island the whole of the £500,000, but ho had refused to give them even 40 per cent, of the petrol tax. “I say that there is something wrong when ho refuses to accede to our request for a 40 per cent, allocation,” declared Mr Ansell. “We are only asking for our rights. If Mr Coates and tho Government defy us we should he equally insistent, and refuse to accede to their dictates.” MONEY ABSTRACTED.

The motion was carried unanimously. “Tho motorists of the South Island are not prepared to trust the Minister of Public Avorks or the Prime Minister,” said Mr Halliday in moving—

That this meeting further demands that tho Hon. the Prime Minister makes immediate arrangements for the refund of tbo money borrowed from tho revenue account of tho Main Highways Board in lien of the amount statutorily payable from tho Consolidated Fund, as the money so abstracted is not being expended according to the terms of section 21 of the original Act, nor of the resolution of the Main Highways Board—viz.: “ That the money temporarily transferred from the revenue fund to the construction fund shall bo allocated according to their use between the North and South Islands on tho basis.now in force in regard to the distribution of revenue received from motor taxation.”

Mr AY. If- Steel, secretary of flic Expansion League, seconded the motion. Ho said that"the following figures would show the extent of tho highways in the dominion:—North, 2,600 miles; South, 2,000 miles; yet the South. received only 40 per cent, allocation. Tbo South Island was being starved. Tho roads in the South passed through much country of little productive value, which could not pay for tho loans if they wore raised. Mr Downie Stewart had referred to the loss of £300,000 on tho railways. “Wellington mismanagement made the loss,” declared Mr Steel. “If the opulent and brainy cow cocky of tbo North finds it too great a strain upon bis pocket to keep bis poor cousin in the South, let him cut tho painter and leave us to manage our own affairs. Wo did it in the old days when we had to find the mass of money to keep tho North Island from being pushed into the sea by tbo. hostile Maori, and wa can do it again, and give them an object lesson in economical government. One of tbo canons of democracy is government by consent of the governed. We don’t consent to the Government as we are at tbo present moment. It is just the beginning of a big row, which will end at the ballot box at the end of next year.” Mr Mitchell suggested that the word “abstracted” in the motion should be amended to make it less stinging. Mr Halliday: I believe in leaving as much sting in ns possible. Mr Macdonald; In my opinion the money was not borrowed—it was abstracted. Leave the word in. The motion was carried without dissent.

After some dismission it was decided that Messrs Ansell and Macdonald should be the nucleus jof the deputation to travel to Wellington, it was decided to ask all provinces in the South Island to assist in sending a united deputation. Mr E. W. Hall suggested that they should wait till a reply t|o the motions was received by the local bodies, but the delegates wore omphalic that immediate action should bo taken. Mr Walls urged that the deputation should also place before the Ministers the pressing need for relief being extended to the. boroughs, such as Mosgiel, which wore connecting links between the highways. Mr Macdonald supported the Miggestion. He understood some relief was to be given, the boroughs to get 8 per cent, of the petrol tax. However, after the North island bad finished with the money, that would bo 8 per cent, of nil for the South. Tl>e Mayor said that the deputation could discuss the matter.