PETROL TAX INCREASE

Manawatu Standard, Volume L, Issue 142, 15 May 1930, Page 8

PETROL TAX INCREASE

OROUA COUNTY'S OBJECTION. ’ PRESENT TAX SUFFICIENT. (Special to “Standard.”) FEILDING, May 15. After a full discussion on tho question, tho Oroua County Council yesterday decided to tako no action in regard to a request from the Whakatano County Council that tho Government bo urgod to- increase* tho petrol tax to such a figure as will onablo it to completoly finance all future maintenance and construction costs on primary main highways, only one councillor being in favour of supporting tho proposal. Cr. McElroy remarked, on tho reading of the letter, that the council had had a similar request before boforo and , Cr. McLennan observed that such requests seemed to bo getting popular. ’ Tho chairman (Cr. A. Campbell) said that no ono in the Oroua County would expect to bo relieved of their expenditure on tho roads, but thought the time had arrived when towns of 6000 or under population should be placed on a more eqmtablo basis than at present. Tho speaker wont on to cite tho caso of tho Oroua County, instancing that roads leading to Palmerston North carried a £3 for £1 subsidy while those into Feilding only received £2 for £1 subsidy. Thoro was a danger, however, in putting the administration cf the money in tho hands of the Government. Cr. McElroy: That is a good point. Continuing, the chairman said tho proposal raised the question of the nationalisation of the main highways. '1 ho letter from tho Whakatano Council had stated that the sido roads had been neglected, but the chairman differed from this as regards their own roads. Mr McElroy: I move that tho letter lie on the tablo, Tho council from which this letter emanated had its roads bunt by the Public Works Department and the Main Highways Board and so were some of tho roads in tho adjoining county where tho Highways Board constructed 25 miles on ond. As a matter of fact, the counties in tho Auckland province have been getting moro than their sharo of the petrol tax and tho tyre tax than tho legislation provided for. Wo have rated ourselves and raised special loans to build roads, but they havo dono nothing of tho sort, in fact, they are liko Uliver Twist, they are asking tho other follow for some more. What with tho tyro and potrol tax, I think the motoring people aro woll taxed to-day and aro paying their portion of tho upkeep of the roads. There is a danger also ill asking tho Government at any tiino to increase taxation. Somo people aro advocating that tho tax bo raised to Is per gallon, but how is it going to benefit our county and roods ? Wo aro getting a subsidy from tho Highways Board and our roads havo to bo maintained out of rates. Cr. Green: The motorist is not doing his fair sharo to-day. I think this is a move in tho right direction. If a man docs not want to pay tho benzine tax he should not uso tho roads; if ho does, ho should pay. Gr. McElroy: Do you think it will reduce our rates ? Cr. Green: Certainly. . Cr. McElroy: Never. It would simply moan that tno people in tho Auckland province would got an increased subsidy on thoir main higliways. . Cr. McDonald: There's a lot in what Cr. McElroy says. If we wore going to get our sharo ot tho increase revenue, well and good, but aro wo ? Tako tho Pohangma County Council, tor instance; they haven t many miles of main highways, yet all the ratepayers would bo called upon to pay trie increase. Tho weakness lies in how tho money is going to bo spoilt. If tho extra money collected in tho No. 9 Highways District was spent in it it would bo very good, but, taking tho caso of Pohangma again, if thoir tax was doubled would they get doublo the money spent on their roads V There’s the danger. The chairman: Yes, and what about those counties that have already surfaced their roads’! 1 can’t altogether support the request for tho sinipio reason that local bodies should not ask for all their roads to be dono liko this, but I do think wo should all bo placed on tho same footing as if wo wore adjacent to boroughs like Palmerston North. The Kairanga County Council gets £3 for £1 subsidy on their roads while we, being adjacent to Feilding, only get £2 for £1 in subsidies. Cr. Green: I take it that the tax would only apply to main roads. It is not taxing all our ratepayers. . Cr. McDonald: How many of them arc there without cars? , .. Cr. Green: Not many, certainly, but all don't use them to tho same extent. Cr. McDonald: It’s going to hit counties pretty hard whero the artorial roads go straight through like somo of tho Main 'Trunk counties. * Cr. McLennan: It's a move to make tho motorist pay for tho roods; it’s tho thin edgo of tho wedge. Tho chairman: It s tho thin edge of the wedgo towards tho nationalisation of our highways and that's what wc have to watch. We havo all benefited by the Main Highways Act, but if wo aro going to ask tho Government to spend the money collected for tho roads, thon the next thing wo can expect thorn to do—to natioaaliso the whole of tho highways of Now Zea- ’ land and I consider that a danger. By adopting this resolution wo are risking tho Highways Board spending tho whole of tho money. _ . Cr McDonald: How aro counties going to got on where tho work is already dono ? * The chairman: I don't know. I don’t think they can make legislation retrospective. This resolution is pretty bald, as a inattor of fact; wo don’t know where it is leading us to, but I’m dead against nationalisation of our highways. Cr Green: I can’t seo any suggestion of highways nationalisation coining from a county council. Cr McElroy: I would liko to mention that the rates in "tho Whakatano County aro not very heavy. They aro on tho unimproved value and arc only from 2d to 3|d in tho £1 for goneral rates. Cr Green: Yes, but with thoir land how much mote can they pay. Cr McLennan: To ask for an increased tax for now roads is out of tho question. If it reliovcd the tax on our ratepayers I would support it. Cr McElroy: It's not going to rolicve our ratepayers ono iota. - , Cr Green : What would tho rates havo been to-day without tho petrol tax? lo tax motorists is fair. ' .. . ' Cr McDonald: It depends on how it is adjusted. It isn’t fair to tax them to build other people’s roads. Tho chairman: Our roads would have been nationalised before if wo hadn t had a strong Minister of Public Works at tho (jr Greon: Nationalisation is not likely to happen. , • ... , .. Tho chairman: Moro likoly than you tl> Cr k ’Green: It's fairer 5 to incrcaso tho petrol tax than the rates. . , Tho chairman: We havo not increased our rates these last few years. Wo havo got to remember also that there s a tromendous amount of petrol tax collected ill the cities and spent on country roads. Anyhow, the incrcaso in tho tax can bo left to tho Highways Board. They will incrcaso it quick onough if they find themselves running short of funds. Cr Green: The board could not do that without legislation. The chairman: That would be an easy matter for the board. Cr McElroy: The farmer to-day has plenty of taxes without an incrcaso in tho petrol tax. Will you accept a resolution opposing an increase in the petrol tax, Mr Chairman ? Tho chairman: I’m afraid not, because wo might want an increase one of these days Ond the Highways Board is making investigations now in regard to the iniloof motorists. However, wo cannot subecrilio to this resolution. We built up a t 6 before. W CV Cr McElroy: We aro going along very nicoiy as wo are. increase the tax Cr uLsEon •should bo altered and tho our allocation , • (j, O SB ino propordisbursoments made m ‘ i tiou a 3 tho increase re3o j ut ; 01l g0(;s a • ih ° C] ‘ a «nTrm convinced that no Gov.ong way and J. m c _j 3 better than eminent could run t ho present tho local bodios are doing “35 .w. srw“ <" w *"‘ ol ■*

seconder. Cr McDonald’s motion that tho letter bo received was seconded by Cr W. Greenhqw and carried, Cr Green being the only dissentient. OPINION AT POHANGINA. Opinions that the more rcinoto county areas did not receive an allocation ot main highways funds equitable with their contributions were expressed at tho monthly mooting of tho Pohaugina County Council yesterday when the iettcr from the Whakatano County Council regarding tho petrol tax was read. “I don’t know that it is in accordance with our. ideas altogether,” commented tho chairman (Cr Strahan). “Other counties may bo more iavourably situated than us.” , . Cr Howoll expressed tho opinion that tho ratepayers were paying a great deal moro than thoy wero receiving. There wore about 400 ratepayers in the county, and most of them owned cars. At a fiat rate of £2 per car tho county would no contributing £BOO, in addition to about £7OO a year in petrol tax. Tyro tax might be assessed at £IOO. That was £I6OO that tho ratepayers contributed to tho Main Highways Board, irrespective of other considerations. Last year tho county received £I2OO from the board lho difficulty was tho manner m which the main highways allocations wero distributed. Straightening of' bends and improvement of roads meant moro frequent accidents through spooding, increasing the hospital charges on the ratepayers. Cr Howell stated that they could .not support tho proposal unless the counties were so classified as to givo tho back blocks areas an equitable proportion. Otherwise the ratepayers would bo saddled with an /additional £4OO for practically nothing. lho principle of tho board's funds was, right, but tno allocation was wrong/ Cr Knight stated that tho county rates in (lie hack areas amounted to as much as 5s per acre. . That was a protty fair rental. The opinion was expressed that tho district was bearing a heavy burden of taxation in all respects. Tho council decided to roccivo the lottar, and not to support it in its entirety.