MOTOR TAXATION

Hawke's Bay Tribune, Volume XXIV, Issue 210, 18 August 1934, Page 3

MOTOR TAXATION

JLJse by Consolidated Fund I ROAD DETERIORATION The North Bland Motor Union conference at Napier vesterdav considered the follow ing statement by the chairman:— “During the past few years there has not been a conference of the union at which the very important questions Of motor taxation and its expenditure have out been discussed. Members of the uuiou have been apprehensive with tegard to the continually increasing taxation upon motor transport, the substantial proportion of which has been used for the relief of the Consolidated Fund.

•'At the same time as our taxation has been increased the amount available for highway maintenance and construction has been substantially reduced, with the result that there has been a serious deterioration in our roading system all over the Dominion. One prominent highway authority has estimated that up to the end of March last the highways have deteriorated to the extent of at least £500,000. We have, ou numerous oocasions, made reference to the false economy in starving the highway system. “Viewing the matter from another angle, necessary construction works, including replacement of bridges, have been definitely held up, with the result that the motorist has lost the benefit of lower transport costs, which are always a consequence of improved road surfaces. ‘‘The position ot the union has been very difficult. It appreciated the problems that the Government had to meet during an abnormally dnaeult period, and agreed that the country’s interests and welfare were paramount, whilst at the same time it recognised that it had a duty to the members Of organised motoring. “Some three years ago the union decided that it would give to the Government helpful co-operation, and that policy has been faithfully adhered to. It recognised the tact that sooner or later there must be substantial lelief from the heavy demands upon the Consolidated Fund, and that when that time arrived a review of the position was justified. SOME IMPROVEMENT. “It would appear that there is now •ome improvement in Government finance, as shown by the quarterly figures, and accordingly we have been in consultation with the Right Hon. J. G. Coates, Minister of Finance, urging that the proceeds of motor taxation be applied for roading purposes. -It was evident that the Miniater of Finance appreciated the position —and, it might be added, has appreciated it all along—and whilst he was unable, pending the presentation of the Budget, to give any definite information, he did indicate that considerable improvement on last year can be expected during the current and following financial years “Of course, it must be some time before the whole of motor taxation can be applied to roading. but, as stated on numerous occasions, we are anxious that the first restoration to the fund should be in respect of the sum Of £500.000. winch for the past two Or three years has been annually converted to the purpose of .consolidated revenue. There arc indications that for the current year the Consolidated Fund will not require the full payment of the £500.000. and we hope that the following year will show a still further improvement in this matter.” REPOSSESSION AND CONTROL. Steps should be taken to secure repossession and control of the £500,000

a year appropriated out of petrol taxation and used in the Consolidated Fund, said Mr W. H. Wynyard, piotorists’ representative on the Main Highways Board. If this were achieved it would quash the demand for de-rating and give relief to local bodies. Mr Wynyard said that it was regrettable that money to be made available for construction purposes would coms out of the loan account, since interest would have to be paid. This came in spite of the fact that the Main Highways Board was contributing a great deal towards the Consolidated Fund. It was important, though, to have a larger sum available. In some quarters there Had been agitation for de-rating, he added. So far as the highways were concerned, derating had reached its peak. The amount contributed by local bodies to the main highways was more than offset by the subsidy received from the Main Highways Fund and the heavy traffic fees paid. These amounts totalled more than the contributions of local bodies to the highways. He said there was the need for taking steps to secure re-possession and control of the £500,000 a year diverted from the petrol tax to the Consolidated Fund. If this re possession were secured it would go far to provide relief to local bodies, as well as permanently quash the call for de-rating. Mr Wynyard dealt with bridges under construction by the Main Highways Board. Even with restricted finance, he said, there were 33 bridges being built, and seven others completed. The main ones built last year were those at Balclutha, which cost £39,000; at Fitzherbert, across the Manawatu, £33,000; at Waipukurau, £13,700. This year, members of the Main Highways Board would resume their tours. This would enable local bodies to make their representations in their own territories.