UNITED’S BUDGET

Hawera Star, Volume L, 31 July 1930, Page 5

UNITED’S BUDGET

DEFENCE BY MR VEITGH

RAILWAY RETRENCHMENT

APPLICATION OF PETROL TAX tliy Xelcgrapli —Press Association.) W'ELLLNGTOa. July 31). Guniinuiiig tile iiud'get debate in the House m itcweaeiifcaibives to-day, Hon. u . a. \ oiten said lie admitted that hue application ol' Hie amusement tax was an unp.easant uuty for the Government, it had. been necessary to raise a large amount, in additional taxation, and it worn Id have been a serious n latter to have attempted to raise it all in one or two quarters. After all, at a time when money was urgently needed, it was not out of place to ask for a contribution in the form of amusement tax.

With regard io the employment of railwaymen, Mr Vfilch said he hoped that conditions in the railway service would be altered so that it would be possible to employ a larger average number of men throughout the year m preference to engaging a large number at rush times and having to dismiss many of them later. The Minister quoted figures 'to show the efficiency of the railway staff. Last year, for every man in the service 1479 passengers and 401 tong, of merchandise had been carried. During the. last four years the average had been 148 S passengers and 401 tons of merchandise Comparing this with the pre-war .period, he said the average per year from 1906 to. 1910 was 1254 passengers and 412 tons of merchandise, per man. In answer to. an interjection the Minister said: “Anyone who is acquainted with my record will know that I spent a. lengtibv .period of mv life in building up conditions in the railway service, and I am not going to start now in the evening of ray life to destroy that work.”

Tlr Veitch added that he greatly regretted that shortage of money bad necessitated the dismissal of a number of employees, but he gave an assurance that he 'would' do. everything in his power for tile workers in the railway service.

UNNECESSARY BRANCH. LINES. Mr Veitch stated that, motor transport had not interfered with the railways to the extent that was popularly imagined. Actually it had prevented the. railway from expanding to the extent that ’had been .anticipated, and d the railways were kept down to those services that were in existence before motor competition had been introduced; it. would be found that the losses could be considerably decreased. The difficulties of the present day had largely been accentuated by the construction of branch lines where they were not ueoesIhe plying to- the criticism that there had been a breach of faith in regard to the highways fund 1 , the Minister said that as 'long as the Government didi not take from the Highways Board the pi oeted.s of the original tax of 4d on petrol the. bargain made by Mr Coates would have been maintained. There had been no agreement 'bearing on additional taxation that might be imposed on petrol. It. had been necessary to obtain finance for reading, and the Government had chosen the most equitable method or raising it. Motorists were users of the roads. It was not desired to overburden country ratepayers. Mr TV. J. Poison: Half of the l tax will be paid by country ratepayers who are motorists. , „ , Mr Veitch replied that half of the cost of maintaining; back blocks roads would be borne by city motorists. He repeated til at- the tax on petrol was the fairest method of raising money. Mr A. E. Ansell (Chalmers) declared that the extra petrol tax would he used for general purposes. It was. not a luxury tax and Would affect a large number’of people who codld not afford to pay. It" was unjust that such a heavy burden .should be placed on the motorists in 'addition to the. ordinary taxation which they already paid m various ways. A very large portion of the: tax would be paid by city dwellers, who would receive, no. benefit whatevoi Not on lv was the cost of petrol to be increased, but the prices of cars themselves and of lubricating oils would lie raised. Tt was inevitable that the. -proprietors of ’buses would pass these charges on and working people would have to pay more in fares.