THE PETROL TAX

Gisborne Times, Volume LXXI, Issue 11294, 26 August 1930, Page 4

THE PETROL TAX

AY AS THE REDUCTION^ JUSTIFIED ?

(Special To The Times). AAkELLINGTON, August 22

Speaking in the House on the Tilianee Bill, Air. Lysnar said that he would have voted for. the 7d petrel tax and that consequently he had voted against any reduction. He thought that .it was quite wrong to reduce t-lic tax. It was. he continued, idle for anybody to say that the tax was not reduced because of tho opposition. There had been an allnight silting; and then the Prime Minister: had said that, in consequence of that fact, he would make the reduction—to meet the House. Proceeding, Air. Lysnar said that he had received wires from local bodies at AVairoa- and Gisborne regarding t-lie petrol lax. They were under the misapprehension that they were losing the revenue they had been receiving in the past. He had shown those telegrams to the Prime Aliuister. and Air. Forbes bad given an assurance, which lie bad accepted, and, which he had communicated to those bodies, that those places would get the same revenue in the future as in the past, and that the 2d duty was only imposed to relieve the Consolidated Fund of its contribution to the Highways Fund. If. added’Air. Lysnar. those local bodies were to receive the same amount as they had received in tho past, the only alteration proposed to he made was to relieve the Consolidated Fund of its quota- to th 0 Highways Board and to make the user.of the roads pay- 2-d to the Consolidated Fund’s quota, as well as Id as extra- funds for-the backblocks roads. Now, through tlio opposition of certain members of thq House, the i funds for the backblocks roads had /-**• been lost, but the 2d lax to relieve the Consolidated Fuuil had gone through, and was the only alteration.

Mr. J. A. Nash: “And do you ap--prove of that?” Mr. Lysnar: “Yes, Ido approve of it. And 1 would have approved of the- 7d petrol tax. 1 would have dune so for more reasons than one. I think that that tax would place t-lio motors on a more equitable basis in connection with competition with our railways,. and -it would relievo tlio Consolidated Fund. What difference is it, !• ask, from a political standpoint whether the Consolidated Fund gets the: revenue front tho petrol lax, or whether the extra- duty is put on somo i(articular article? In one caso the tax is placed on the whole of fho Dominion ; and, ill tho,other case, it is placed on the users of the road." Mr. J. A. Nash: “What- about Ao contract .with, tho Highways BoarJm’l

Mr. Lysnar: ‘/Tliero was no contract.' It is childish: to suggest that there was a contract—absolutely childish. The honorable piember may think tho House is simple enough to believe that there was a but 4 tell him, with all sincerity, that if -he goes outside the House, and tries to put that down the necks of the, ho will find they win not*, swallow ; it..-There l was ho- contract-. . Any contract is made by. this Parliament!. ,If this Parliament Goiters the statute law light to; do ;so.. More creditor I >,say, j? to *a Government that deals .with the posiiidu and finds out'i way fof-&n» proving the taigatlca ’of the. day.” -.*%»* * • .... -y. , ...