THE PETROL TAX

Hawera Star, Volume L, 29 July 1930, Page 5

THE PETROL TAX

WILL IT BE DEFEATED? MR FORBES REVIEWS POSITION AN UNPLEASANT ALTERNATIVE, (By Telegrapli—Special to “THe Star. ’) WELLINGTON, July 29. The Prime Minister recognises that there is a strong hostility to the increase in the petrol tax, but in an terview with the “Hawera Stars correspondent, when some points or criticism were submitted to him, Mr Forbes showed that an unpleasant financial 'necessity had forced this plan on the Government, but that there is an alternative which, unfortunately, would be equally unsatisfactory, not only to the Government hut also to local authorities and the Main Highways Board. “Of course, no 'Government likes to have indignation meetings held to discuss its proposals,” remarked the Prime Minister when his attention was called to the plans of city motorists. “A national necessity has forced, the policy to which they propose to object, and I am hopeful that those who view the whole situation in a broad sense will ultimately realise that, however they mav obiect to tlie increased petrol tax', it is the least unpleasant method of meeting a difficult situation. First and foremost the Consolidated Fund, in other words, the taxpayer, had to he relieved this year of as many burdens as possible, and amongst the burdens lifted have- been grants from revenue for road construction and road maintenance. NO BREACH OF FAITH.

“The statement has been made that this action, dictated by no other reason than the relief of taxpayers, constitutes a breach of faith. There is no desire on the part of the Government to cease these payments if it is possible to make them, but it is just as well to recognise that they can no longer be made, and that as it is entirely a matter of road costs, the opinion of the Government is that road users should, as far as possible, bear that burden. However, what is proposed in the Budget does not completely relieve the Consolidated Fund from this liability, because the revenue contributed by the general taxpayer is carrying a very big burden in respect of interest on road construction loans. “Details of the Dominion’s public works expenditure to March 31 last show that considerably over £lB,000,000 has been expended on roading, and that the taxpayer is finding interest on that large debt. Thus a very substantial contribution is still being made by the taxpayer for the provision of facilities for road transport. The Government is also expending from the general revenue a good deal of money in relief works on roads, and this again is a big burden which neither the road users nor local bodies are asked to carry. “Under these circumstances it is considered reasonable that the Government should ask the road user to carry a larger proportion of the financial burden of roads, and in raising the petrol tax by threepence there will .'he some additional revenue also available.for the direct benefit of secondary -highways.

ALTERNATIVE TO PETROL TAX. “Tire Government had two alternatives/' continued the T'riine Minister, “it was obliged to cense payments to the main tugiiways account, and it had decided to make good the deficiency by a further petrol tax, or to curtail the finances ot the Main Highways Board and local bodies. The subsidy to local bodies on rates expended for loading purposes was, so far as I know, properly spent in that, direction. There is evidently a considerable, objection to relief being given through tiiiei extra petro ltax and if this agitation is successful, it only means that the burden of curtailed finance is thrown on the Highways Board and local authorities. Having ample proof of the necessity of relieving the Consolidated Fund, the Government considered that this could be achieved with the least amount of hardship by imposing the burden on those who get the benefit.

“A PERSONAL APPEAL.” j \ “I would like, to make this personal appeal to! the motorist,” concluded Mr Forbes.. ’ ’ I give my assurance that this is a time or national necessity which has forced the Government to undertake an unpleasant task. There was a big deficit to be avoided, and an. easy way would have been to run into- a financial morass and extricate the country by borrowing to meet a deficit in the current revenue, but those who put first, in their minds, the Dominion’s high financial reputation .should deplore the adoption .of such a course and admit, however reluctantly, that under the circumstances, the Government lias done the right thing.”

“RAID” ON HIGHWAY FUNDS

CO UNTIES’ OPPOSITION. (By Telegraph—Press Association.) \V HANGAREI, July 28. After a conference ol the North Auckland Counties’ Association Mr. Luke Webb, as president, forwarded a letter of protest to Messrs Coates, Murdoch, Mason and Harris, memners of Parliament, concerning the- Budget proposals to curtail the funds of the Main Highways Board. The letter summarises the prospective handicap placed upon county councils and concludes: “The Northern Counties’ Association views the proposals in question with no small degree of consternation and through the northern representatives in Parliament, desires to voice its disapproval of the proposal designed to divert the revenues of the Highway Board into other channels. Your active opposition to the proposals as outlined in the Budget, therefore, is urgently solicited.” INCREASE SUPPORTED.

RAILWAYMEN’ S RESOLUTION. WELLINGTON, July 28. Members of the Thorndon branch of the A.S.R.S. carried the. following resolution: “That members heartily support the proposals to increase the' tax on petrol, as the present, special and costly type of road is being constructed for the sole benefit of motor vehicles and should be a charge against the owners of such. Furthermore that members of the branch are of the opinion that much of the present chaotic state of transport affairs is due to the fact that, in the past motorists have been allowed to escape from their just obligations. It is, therefore, urged that the present proposed increase is altogether insufficient and should be much higher.”

DEFEAT OF PROPOSALS

MR,. ANSELL’S ANTICIPATION. DUNEDIN, July 28. Air. A. E. Ansell, M.P., interviewed this morning, stated that lie was optimistic that the Premier’s petrol tax proposals would 'be defeated in the .- - House, though he oould not answer a.. -* question whether the Reform and _ Labour Parties had decided on any course of action. One of the most objectionable features was that main ■and secondary highways would not benefit at all. It was evident that the taxation was devised to assist the Consolidated Fund; also that grants to 'backblock roads would be used for that fund through assisting the un-,.... employed. The suggestion that the ■ railways would benefit lie merely described as a very clumsy method ;ofy~ assisting them. The, strongest possible protest should be made.

MOTORISTS PROTEST

“SCREW ON THE TAXPAYER

NAPIER, Juiy 2S

“The ■ Government is making no effort to cut its coat according to its cloth; the Treasury is simply framing its estimates and then putting the screw on the taxpayer to get £2,000,000, or whatever it may be, extra) The good old taxpayer is being ground down by autocratic bureaucracy and Mr. Forbes is simply firing the pills at him,” said Mr. J. H. Edmundson at a meeting of the Hawke’s Bay Automobile Association this- afternoon, called to discuss the increased petrol tax. . The general opinion of the meetingwas that the Government should effect economies in expenditure instead of imposing additional taxation. After some discussion the following resolution was carried: “That the proposed motor taxation, involving serious increases in Customs duties and petrol tax, is viewed as non-economic and unjust, and that this meeting is of opinion that the Government should take steps to effect economies in road construction and thus help, the country to recover from its present .unfavourable position, one step of which should be a reduction of the programme oi the Alain Highways Board for the year.” .

“WILL REDUCE lAIPORTATION.”

A WANGANUI PROTEST

WANGANUI, July 28. Wanganui motorists to-night passed a resolution strongly protesting against the increased petrol duty. It was the opinion of those present that such an increase would reduce importation, and so the Customs would secure less revenue.

PALMERSTON NORTH VIEWS

PROPOSALS TO BE RESISTED

PALMERSTON N., July 28A largely-attended meeting or 1 ahnerston North motorists to-night emnliatically protested against \ the increased motor taxation as .proposed m the new Customs duties and the petrol tax, and all motorists and other interested parties present undertook to resist the proposals by every means m their power.

NEW PLYMOUTH OPINIONS

“ROADS GOOD ENOUGH.”

A special meeting. of Taianahi Automobile Association at blew Plymouth last evening discussed him increased petrol tax and passed a tion that the Government _ be to curtail expenditure on mam highways, and to reduce the petrol tax by ha . The opinion was expressed that to roads were good enough for some time to come and'that town motorists would be under no great hardship if nnpi - ments were held in abeyance. Mr Val. Duff, in outlinig the views of the executive of the association, said that the levying of a tax had bee© discussed by the Taranaki association on more than one occasion previous to its imposition. . Consequently it had been decided to call a special meeting, had decided that there should be no opposition if the tax were applied moderately. It was necessary, however to have some suggestion of a practical nature to put in its place. The executive felt it unwise to pass a resolution without having of both sides. It was probable that the majority were country residents who had been given to understand that the proceeds' of the tax would be devoted to the alleviation of the condition of the backblack farmers. Consequently, it was thought they had no right to protest against something that was going to benefit such a large number of memb6TS. He bad previously been sent to Wellington by the Taranaki executive with a view to supporting a moderate motorists’ tax, provided the money was used for the benefit of farmers, proceeded Mr Duff. The Highways Board, controlled 10,000 miles of roads of 40,000 miles in New Zealand. If the tax were applied to the improvement still further of the condition of the highways under the board’s control the executive had deckled it would be opposed to it, as it was felt that the roads near the towns were good enough to stand for the time being. There would be no great hardship to the town motorists entailed in foregoing improvements. It had been recognised that these views might not be popular with some bodies. Some city motorists felt they had no duty towards the upkeep of the back- | block roads. Thev asked why they should pay the tax when they did not use the roads. This was rather a shortsighted view to take, as those in the towns were dependent on the farmers, \ and any betterment of the conditions for farmers must in the end! reflect for the good of the town dwellers. The crux of the thing was whether or not the money was going to be spent in a ' proper manner. The tax was not very \ heavy,, each motorist being required to pay in about £2 or £3. “This is a very difficult proposition,” said Mr O. J. Harris. “We know the Government has to find money, but it seems that the Government is rather breaking faith with motorists.”. During the past few days he had investigated and had come to the conclusion that the farming community had no great objection To the tax, provided there was an assurance that the money would be spent on backblock roads. The chairman remarked that that was the consensus of opinion. Mr Harris moved that the Government be asked to curtail its expenditure on the main roads and reduce the tax by about half. Because of the , present position the Government could afford to let the main roads stand for a I while. The motion was carried.