N.Z. PETROL TAXATION

Hawke's Bay Tribune, Volume XXIV, Issue 77, 13 March 1934, Page 3

N.Z. PETROL TAXATION

Use of Consolidated Fund OPPOSED BY MOTORISTS By Telegraph—Press Association. NELSON, March 12. The South Island Motor Union de cided to approach the Government with the request that the £500,000 per annum diverted from petrol taxation to the Consolidaed Fund be retained in the Highways Board's funds in the interest of national economy and in the interests of the national asset of the highways. Mr F. W. Freeman (Canterbury) said that this was one of the most Important matters the union had to deal with. When the Highways Act was launched it was conceded there were three parties which should bear some share of the cost of maintaining and constructing main highways—the Government, county councils as representatives of the land owners and users of motor vehicles. That was 10 years ago. Now it was found that the Government had slipped. out of its responsibility, and also, by the efforts of the Farmers’ Union at least in the North Island, farmers w-ere also seeking to be relieved of their part of the responsibility. The position to-day was that there were 6691 miles of primary highways controlled by the board, plus 4187 miles of secondary highways. Of the primary system, 1500 miles were fully controlled by the board, the remainder being financed by contributions of counties subsidised by the Main Highways Board. In the past the Government had granted these moneys, but these had been withheld since the depression. The finance of the Main Highways Board concerned motorists. Of the 10d per gallon taxation on motor spirit, 4d was retained by the Government for national purposes. The remaining (id yielded in the year ended March, 1933. £1,144,126, but of this sum £500,000 was retained for the Consolidated Fund. Other revenue payable to the board comprised tyre tax and registration and license fees, giving the board altogether in that year a gross revenue of £1,061,595. In order to arrest deterioration and provide better road surfaces, it would be necessary to ensure that the full 6d per gallon tax is used for reading and that the £500,000 per annum now retained by the Consolidated Fund be again made available to the board Mr Freeman pointed out that no money is now being paid to the board, a position which he believed to be unique in tho history of national highway administration. Some effort should also be made against the present derating agitation. After a brief discussion the motion was carried.