THE PETROL TAX

Evening Star, Issue 20556, 7 August 1930, Page 6

THE PETROL TAX

MONEY FOR ROADS SOUTH ISLAND'S POSITION [Special to the ‘ Stah.’j CHRISTCHURCH, August 6. “ It is anticipated that out of the £450,000 which the additional petrol tax of 3d a gallon will produce this year £135,000 will bo available for roads.” This statement was made today by Mr C. J. Talbot, the representative ol the South Island counties on the Main Highways Board Mr Talbot addressed a conference of representatives ol local bodies that bail uten called by the Progress League to discuss the payment ol the restoration of earthquake-damaged roads out ol the South Island funds of the Main Highways Board. After hearing Mr Talbot, the conference adjourned. In his opening speech. Mr Talbot explained that the Highways Board was a non-political body The question of the payment for restoring the West Coast roads had now become a political question, and he felt that ho should keep out of a discussion on that matter. The motorists’ organisations had been informed of the board's attitude on tlie matter. Twelve months ago the board bad approached the Go \ eminent lor assistance in this matter. No definite promise of assistance was given, but the Minister ot Public Works seemed to be sympathetic. Later the Government said that no action could he taken, so the whole responsibility fell on the board. It the board got no assistance from the Consolidated Fund or th. Public Works Fund there was no option but to pay the money out of tlie South Island funds. That was the legal position, and the hoard could have taken no other action. In regard to a deputation which waited on the Prime Minister yesterday, dealing with the petrol tax, Mr Talbot said that the Counties’ Confer-

ence and the Farmers’ Union had some time ago urged that there should be an increase in the petrol tax. The Highways Board was paying 8 per cent, interest and sinking fund on its loans now, and the board presumed that if the interest was to bo charged by the Government on the back grants it would be at the rate of 8 per cent. Out of the additional petrol tax tho sum of £220,000 would be paid as subsidies to county councils and boroughs. This money, which was formerly found by the Consolidated Fund, would come out of the new tax. _ It was anticipated that the additional tax would produce £450,000 this year, out of which £135,000 would bo available for country roads. In a full year there would be, it was estimated, £050,000 available from the new tax, of which £350,000 would be available for country roads. His impression of what transpired at tho deputation was that there was not much chance of the Budget proposals being changed. There was no proposal to interfere with the present position of the board. Tho revenue from the present petrol fax of 4d a gallon the tyre tax. and the registration fees on motor voMoles would still £?o to hoard. In reply to C E Cross (Waimairi) M>- Talbot said that the new tax was to help the roads in the outlying districts. That was what the Budget said. „ Mr F. W. Johnston (Canterbury Automobile Association) said In* would have been satisfied with Mr Talbot’s .t-’.’TTt’ori if lie had registered his vote against the use of the South Island muds for earthquake-damaged roads. They looked on the representative of the counties as the only full representative that the South Island had on the Highways Board, as the motorists’ representative was there on behalf of both islands. Mr Talbot said that there was no other legal way of finding the money for the restoration of the West Const roads. Regarding the remark* as to the differences between the North and South Islands, he wanted to say that practically nil the members of the hoard were born and bred in the South Island. There was no pull one way or another. The board endeavoured to be quite fair to each island.