PETROL TAX

Evening Star, Issue 20128, 19 March 1929, Page 12

PETROL TAX

NORTH AND SOUTH ISLANDS LIVELY POLITICAL ISSUE [Special to the ‘ Star,’] WELLINGTON,. March 38. The basis- of distribution of the petrol tax between the North and South Islands is likely to become a lively political question. There is no,statutory method, but in accordance with the decision of the former Prime Minister the tax- proceeds have been allocated on a basis having, regard to number and class of vehicles in the respective islands. Suggestions have been made that a fairer basis would be 70 per cent, for the North Island and 00 per cent, for the South Island. Your correspondent has investigated the statistical position in line with the various suggestions, and' lias found that if the petrol tax is distributed on tho basis of respective petrol consumption tho results for 1928 would Lave given <2 per rent, of the tax to tbo North Island and 28 per cent, to the South Island. This disparity in consumption is much greater than the difference in tho relative number of motor vehicles, and is accounted for by tho fact that the petrol consumption per mile is much heavier in the North Island owing to heavier grades on most of its roads. This makes a, very substantial difference, ami that is further increased by the larger proportion of heavy vehicles in the North Island, giving a smaller .mileage to tho. gallon. ’Tliis fact is strikingly evident from nu analysis of tho classes of vehicles in the two islands as follows :—• North South Vehicle. Island. Island. Cars ... <>’l % “> Commercial motors (59 31. Motor cycles 59 % 41 % If petrol consumption is to be taken as an index to the petrol tax distribution there will be a further important improvement in North Island reading finance.