BRITISH BUDGET

Hawera Star, Volume XLVII, 26 April 1928, Page 7

BRITISH BUDGET

CHANCELLOR’S SURPRISE. PROPOSED PETROL TAX. MOTORISTS UP IN ARMS. (UNITED PRESS ASSOCIATION—BY ELECTRIC TELEGRAPH—COPYRIGHT.) (AUSTRALIAN PRESS ASSOCIATION.) Received 10.15 a.m. to-day. LONDON, April 24. The police had to clear a way in Downing Street to enable the 1 Rt. Hon. Winston Churchill to pass the crowd to the House of Commons. He was accompanied by his daughter Diana. He walked to Whitehall amid cries of “Good okl Winston.” A passing bus driver called: “What about beer and baccy?” The chancellor, wreathed in smiles, waved a friendly hand. . M.r .Churchill’© surprises were the petrol tax and children's allowances off the income tax. The petrol tax is certainly vigorously opposed by motorists. Mr Reece,' chairman of the motor section of the Liverpool Chamber of Commerce, describes/ the tax as wicked and iniquitous and says: “It will do untold harm and keep a large number of cars off the road.”.

Mr Malcolm Campbell, the motor racer, regards it as unfair to motorists, who are already heavily taxed. The registration tax', based on horsepower, i§ quite sufficient. Taxi-owners and drivers say that it is simply ruinous. The Commercial Motor Users Association that the average goods traffic vehicle will pay £4O to £SO annually extra for petrol. This is simply staggering and will cost the General Omnibus Company more than £300,000 extra yearly. It is expected that the fares will be increased.

Sir Robert Horne, an ex-chancellor, says that he is glad Mr Churchill haw taken the opportunity to bring out a comprehensive scheme for relieving the staple industries, but lie regret© the necessity for taxing petrol for this purpose. This has prevented momentarily the cancellation of the tax on horsepower of motor cars, but the chancellor say© lie has not dosed the door upon the alteration of this important duty. Sir Robert refers to rating reform, which he says has been favoured by all sections of the House for a long time, but the money has been wanting. The effect of the reform will he that after October, 1929, all property used for production by means of manual labour will be relieved of three-quarters of the local rates arid agricultural land, already relieved of three-quarters, will be relieved entirely, the local authorities being compensated by exchequer grants. Offices and private residences will not benefit in any way. The railways, which benefit to the extent of £4,500,000 annually, have agreed to pass on the saving® iri the form of freight reductions. PRICE) OF PETROL INCREASED LONDON, April 21. Petrol prices have advanced 4sd per gallon. The extra farthing, is to cover the cost of collecting the tax. As ©oon as the. Budget was known, motorists streamed to the filling stations." In all parts of London there were queues of cars.