PETROL TAX

Hawera Star, Volume XLVII, 12 November 1927, Page 5

PETROL TAX

PROPOSAL TO REDUCE IT LOST ALLOCATION OF FUNDS. TREATMENT OF CITIES. (liY TELEGRAPH—PRESS ASSOCIATION.) WELLINGTON, Nov 11. The Motor Spirits Taxation Bill was further considered in committee in the Houso of Representatives to-night. Mr. 11. Atmo-re moved an amendment to reduce the tax from Id to 121, but the Minister declined to accept the amendment which, on -a division, was defeated by 39 to- 19. Mr. T. K. Sidey moved an amendment that the money raised front tlie petrol tax should, at- the liseretion of the Main Highways Board, be ex pended- in the Narth and South Islands on the basis of the number of motor vehicles in each Island. He said he had drafted his amendment in strict accordance with the present law, which provided for the revenue derived from the tyre tax -and the registration fees being distributed 'on this basis. He saw no- reason why one portion of tll<S revenue .should be allocated til one way and another in another way He hoped this would not be regarded as a question of South versus North. It was not intended so, but was merely asking the Government to be consistent.

Mr. AY. D. Lysnar strongly objected to the amendment. It might be in the present Act, lie said, but two wrongs did not make a 1 right. Mr. D. G. Sullivan contended that the amendment provided for the expenditure of the money in the island in which it was collected. 'The amendment was permissive, not mandatory. Mr. W. A. Veiteh said the amendment was reasonable -and just and he would support it. Mr. G. W. Forbes maintained that some such provision in the- Bill would help to allay a great deal of turmoilover the question of main highways, because there was a feeling that the South Island had not in the past got its fair share.

Mr. V. H. Potter at this stage sought to interpose with a prior amendment -ncreasing the allocation of revenue to the cities under clause 8 from 8 per cent, to 12 per cent. The Prime Minister said he had been discussing this aspect- of the ca-se with the Wellington City Council, but as yet no decision had been come to. What was decided with regard to Wellington would .apply to other cities as far as practicable. Air. T. M. AY.ilford and Sir Join: Luke said Air. Potter’s amendment did not go far enough to be of any use to Wellington. A,t this stake the chairman of committees ruled Air. Potter’s amendment out of order on the ground that it •should have been moved earlier, and consideration of Mr. Sidey’s amend ment was resumed.

On resuming after .supper, the Minister said lie could not accept the amendment, not that lie wished to set island against island, but he did not agree that the original legislation on which All - . Sidey relied was right. He did not know how long he would be administering the fund, but while he did so. he wanted to be fair. So far ns he had seen of the South Island, the part on which the greatest expenditure_was_ required was away from the main highways (on tile West Coast),, and he wanted the fullest liberty a,nil latitude in spending money where it was most required. Mr. P. Fraser urged that the expenditure should be national and not ov islands.

Air. J. Bitcheuer thought the South 'slain! representatives would not support the amendment because tnev con ,iilered the South Island had been very fairly treated in the past. Air. J. Horn considered the South Island. should have its noney “earmarked” in some way. After further discussion the amendaoiit was lost on the voices and clause 3 was agreed, to. Other clauses were .i-lso agreed to and a new clause was added exempting from the tax petrol intended for use in the Chatham Islands. Progress was then reported. CONCESSION TO SAIALL TRADERS TO MEET COAIPETITION OF BIG MEN. BV TKLKUHAPH —SPECIAL TO "THE STAR.”) AVELLINGTON, Nov. 12. Legislative effect was given last night to the request made by the small traders that the petrol tax should not apply to any .spirits shipped; on or beore November 8. This was done after midnight, when the Alini-ster of Public Works introduced the necessary amendments to the Alotor Spirits Taxation Bill. One amendment prorides that where any duty has been mid in respect of any motor spirits ixempt from duty the Collector of Customs shall, without further authority, illow a refund.

It was explained to the House that this had been done to. meet- the small iupplier. who was not ready to eom>ete with the large trader who had big stocks in New Zealand.. The small traders had said that if this alteration were made they would be quite satisfied.

Air. P. Fraser: “You are quite satisied that the public will get the beneit?”

The Minister of Public Works (the don. K. S. Williams) .said that he lelieved the importers were trying to lo the fair thing. Dealers had been *ery fair, and had not taken advan- - a ere- of the public, as might have been done.

Air. AI. J. Savage said that he had i letter from a small company which omplained not of what was on the rater, but of what was actually here. 3ig American concerns with large docks would be able to sell for some rime without .barging the tax, while he small trader, living from hand to nouth on small stocks, would have to )0 charging extra or hearing the loss limself.

Sir Joseph Ward : “But this amendnent meets what you complain of.” Mr. Savage contended that big firms vith millions of gallons in store would bare the best of it, because the small nan would lie* paying 4d while his docks were on the water. The comiany which had written to him had -uggested that the tax .should be .■barged on sales. It seemed clear that the big man could go on .selling without charging the tax, and the small in an would lie forced out of business.

The lit. Hon. J. G. Coates* said that this amendment would enable. the ■small man to keep his customers.

Air. Savage : “But it seems to make : t worse, because the big fellow is on the water, too, with more -supplies.” Air. Coates: “Well, the trader® are satisfied, anyhow; this is what they isked for. They say that if they can have this concession "their stocks will iust about see them through. We don’t like to lose £60,000 or £70,000,

of course, but we don’t want to be close-fisted or mean about it. I am bound to say that- nothing could have been more pleasant than dealing with the bulk holders; the case men, too, looked at it in a very broad and fair way, and the public can depend on it that thev will*give them service.” Air. T. Al. Wilford said that he was satisfied that- a fair thing had. been done. After all, if the big trader had large stocks lie was entitled to any advantage.