DERATING FARM LANDS

Hawera Star, Volume LIV, 7 March 1935, Page 6

DERATING FARM LANDS

USE OF THE PETROL TAX.

OPPOSITION TO PROPOSALS.

The question of the derating of farm lands, was the subject of a conference in November last between Messrs W. J. Poison, M.P., H. ( E. Blyde and R. H. Feisst, representing the Farmers’ Union, and Messrs A. E. Jull, M.P., W. Morrison and C. J. Talbot, repi’csenting the New Zealand Counties’ Association, in order to arrive at a policy agreeable to both organisations. Particulars of the proposals decided on were read to the provincial executive of the South Taranaki Farmers’ Union this morning. Mr E. J. Betts was in the chair.

The views of the New Zealand Counties’ Association as outlined by Mr Jull were (1) That the petrol tax should be continued and stiould be .made available for road construction and maintenance jjurposes only. (2) In lieu of the present system of subsidy on general rates which now .obtains with a maximum of £2500 per annum for any one county, there should be substituted direct assistance in the form of a £ for £ subsidy from the petrol tax in respect of all roads other than main highways. “If this policy were adopted,” stated the circular, “it would be more equitable than the present subsidy on general rates ana would have direct relationship to the expenditure on the roads themselves. At the present time the subsidy on local body rates is being paid out of the Main Highways Fund instead of out of the Consolidated Fund. The amount paid to counties last year was in the vicinity of £135,000. Mr J. S. Tosland (Pihama) moved that the proposals be endorsed. - In this lie was supported by the chairman.

Mr W. A. Sheat levelled some criticism at the proposal on the grounds that it was formulated by the Counties’ As-1 sociation, and - he was against the principle. of that body dictating the policy' of the Farmers’ Union. The union had always reaffirmed the policy of complete derating of farm lands, and the proposal was .a step down from that, principle. He suggested that on those lines the Union could not endorse the principles outlined in the circular in its entirety. He moved an amendment that the Dominion executive be advised that the branch reaffirm the. policy of the complete derating of farm lands, but endorse the Counties’ Association insofar as they would prevent the tax being diverted into other channels. The amendment was seconded by Mr iS. J. Hollard (Kaponga). The amendment, when .put to the meeting, was carried, Mr Tosland' recording his vote against it.