TAX DIVERSION

Gisborne Herald, Volume LXXIII, Issue 21964, 7 March 1946, Page 6

TAX DIVERSION

PETROL DECREASE DEMANDED ROAD IMPROVEMENTS “Now that the war is over we are asking the Government to remove the taxation of 4d a gallon on petrol that it imposed for'war purposes,” said the president of the Automobile Association (Auckland). Mr. F. G, Farrell, addressing motorists in Gisborne last night. “The recent reduction of 2d a gallon was not a gift from the Government as it has been made out to be. The reduction by 2d was caused by the lower freight, and war insurance.” Referring to Main Highways Board finance, Mr. Farrell said the North Island Motor Union had requested the Prime Minister. Mr. p. Fraser, to receive a deputation to discuss this subject. “Out of Is 2Jd a gallon of petrol paid by motorists the board received just under 6d." he said. “We have requested that this taxation paid by the motorist for uses other than roads should be reduced. The motor unions have decided that they will not discuss this matter with any person other than the Prime Minister, and hope to do so now that he is back.” £2,000,000 Spent on Roads Mr. M. H. Wynyard, motorists’ representative on the Main Highways. Board, who was also present, said that in 1938, 1939 and 1940 the board was spending on roads about £5,000,000 a year. Last year the expenditure was just over £2,000,000. To-day the money was not going as far because of increased costs. During the war the roads of New Zealand had deteriorated to some extent. Deferred maintenance, it was estimated, would cost about £1,000,000 and it would take five years to overtake. Since the inauguration of the board £36,000,000 had been spent on the roads of the Dominion and this asset had to be preserved. Because of the shortage of man-power and materials, however, it was doubtful if more could have been done even if the money had been made available. Mr. Wynyard said there were many wooden bridges in New Zealand 40 years old. Some were only being held up by their reputation. There were some new bridges required in the Gisborne district, but again the delay was caused by the shortage of materials and man-power trained in the work. There was the bad bluff on the Tiniroto road. The only remedy seemed to be the construetion of two bridges across the river, and they would be expensive. However, it was a problem to which consideration would have to be given. Shipment of Bitumen

Bitumen was also in short supply for the Dominion's requirements because of the shortage of dollars. During jhe next month or two the board was expecting to receive a shipment of 6000 tons of Trinidad bitumen, which was in the sterling area. Last year the board had done about 39 miles of new sealing compared with an average of about 300 miles in pre-war years. , . , The nature of the Gisborne district, said Mr. Wynyard, made it a difficult roading proposition. The country had a tendency to slip and the cost of metal was high. The cost of delivering metal to points near Gisborne was about £1 a yard, whereas in more favoured districts it ranged from 5s to 9s a yard. Mr. Wynyard said the hoard proposed to grow more trees in the district with the object of stabilising the country. The needs of the district were fully realised by the board. Further work, including sealing, however, would depend on supplies and man-power conditions. , , .. The meeting decided, on the motion of Mr. J. W. Williams, that representations should be made urging the full restoration immediately of both finance and equipment to the Main Highways Board to enable it to overtake the vast amount of deferred maintenance of bridges and roads. Further, it was urged that the charging of interest on former free grants should be abandoned,