TAXATION ON MOTORISTS

Evening Star, Issue 20507, 11 June 1930, Page 2

TAXATION ON MOTORISTS

OTAGO CLUB’S PROTEST PROPOSAL TO INCREASE PETROL TAX Strong exception to the proposal to increase the petrol tax to benefit the charge on the Consolidated. Fund of the Hospital and Charitable Aid Boards and to the Government using only South Island highways fund money for the restoration of the West Coast roads damaged by the earthquakes last year was expressed at the monthly meeting of the Otago Motor Club last night. Mr Harry Halliday said apparently the Farmers’ Union had started the agitation to increase the petrol tax. Some of the North Island county councils had given their support definitely to the agitation, and ho understood quite sympathetic support was being given in official quarters. The proposal was to increase the petrol tax to lid. Motorists were now paying 4d a gallon, which amounted to £900,000 yearly. It: the proposal were brought into effect the taxation would be increased to £2,000,000 annually, but of that amount only £1,000,000, it was suggested, should bo given to the Highways Board, the remainder to go to the relief of the hospital and charitable aid charge. Mr Halliday commented that that would be a very nice thing for the farmers. In recent years the motorists of the dominion had contributed the following in taxation;—l927, £586,000: 1928, £716,000; 1929, £l,944,000; 1930, £1,420,000. „ Those amounts had been paid into the highways funds, but, m addition, 8 per cent, of the petrol tax collected had been given to the cities, and motorists also had to pay driving licenses, third party insurance, and the cost of number plates. The heavy traffic owners would be penalised. Motorists as a whole were now paying £3,000,000 annually. Ho thought the new proposal called for the strongest condemnation; and nothing stronger could bo said than that those agitating for the increased taxation knew nothing of what they were talking about. It was a pity that public men should be allowed to get on a platform and advocate things of which they did not know even the principles. “It is the same old thing,” said Mr Halliday. “ Motorists are being asked to pay for everything new in the country.”

Mr A. I. W. Wood moved that an emphatic protest be made against any further taxation being levied on motorists, and especially against any taxation to bo used in such a way as was now being suggested in certain quarters. He said that the taxation was first made so as to pay. for the cost of repairing damage to the roads done by the users. To suggest that taxation should bo levied for a foreign purpose on a section of the community was unjust and inequitable. The proposers were endeavouring to dodge their just liabilities and responsibilities. Why should motorists have to keep up the hospitals? (Laughter.) Mr W. Wright: We don’t fill them yet, (Laughter.) Mr Wood said the Highways Board was formed in 1924, but it was not till 1926 that it was functioning. Throughout New Zealand progress was evident, although in the southern portions the work was backward. Any move to retard or interfere with the activities of the Highways Board would bo opposed by every motoring'club,in the country. The motion was carried. The Chairman said that the club had made strong protests a year ago against the suggestion of the Government that the highways funds should bo used for the restoration of -he damaged West Coast roads. Mr A. R. Ansell, M.P., stuck to the Minister of Public Works and members of Parliament until he obtained a promise that the money used would be restored from the, Public Works Fund. The quarter of a million pounds already expended had been taken from the South Island-part of the highways funds. If the money were not restored it would mean that South Island motorists alone were to pay for the restoration work. That would be most unfair. On the motion of Mr Wright, the club decided to enter a most emphatic protest and to ask the South Island Motor Union to take steps to see that the Government promise is kept.