MOTORISTS SEEK REMOVAL OF WAR TAX ON PETROL

Greymouth Evening Star, 27 September 1947, Page 9

MOTORISTS SEEK REMOVAL OF WAR TAX ON PETROL

(P.A.) CHRISTCHURCH, Sept. 26. The South Island Motor Union, at its annual conference in Christchurch today, decided to request that the tax of 4d a gallon on petrol imposed in 1939 fpr defence purposes be removed without further delay and also to ask the Government to give an assurance that the minimum contribution annually to the funds of the Main Highways Board would be not. less than the total taxation collected from motorists each year. • . . It was agreed that ths Municipal and Counties’ Associations, Federated Farmers, commercial interests and others should be invited to support the motion and that the resolution should be sent to all members of Parliament. The North Island Motor Union was associated in the resolution. .

Main Highways Board. Mr M. H. Wynyard, motorists’ representative on the Main Highways Board, reported to the conference that heavier traffic on roads where wartime restriction on maintenance had left weaknesses was causing concern. Maintenance expenditure in 1938-39 was £1,311,000. and in 1946-47 it was £1,750,000. This year it waS estimated that more than £2,000.000 would be spent in this way. Discussing proposed changes m finance lor the board, Mr Wynyaid said £12,000,000 loan indebtedness had been written off by the Government and also £460,000 a jjpar interest. These two sums, and nearly £600,000 free for construction, were equivalent to nearly another 2Ad a gallon of the petrol tax. If the board could get from the Consolidated Fund the equivalent of a total of lOd a gallon of the petrol tax the board w.ould be assured of adequate resources.. “Revenue Might Be Smothered” The president (Mr W. R. Carey) said that if the beliefs of the board were realised all was well; but he was concerned that revenue from motorists might be smothered in the general fund.

Mr P. W. Breen (Otago) said the motorist was to the Government the goose that laid the golden egg. So long as the class tax went back to the roads they were satisfied; but they would not tolerate its diversion to other purposes. It was to be hoped that the board would not have to go on its knees to the Treasury. Mr G. Hamilton (Canterbury) said much could be covered under the Blanket of the Consolidated Fund.

Although the Government had wiped off debts of more than £12,000,000. it should be remembered that it had appropriated £28,000,000 from taxation on motorists for other purposes, said Mr M. M. MacDonald (Southland). •'

The resolution was carried on the motion of Mr Twyneham and Mr J. H. Main (North Otago).