Control of Motor Taxation Revenue

Manawatu Times, Volume LV, Issue 6834, 15 April 1932, Page 3

Control of Motor Taxation Revenue

MAIN HIGHWAYS BOARD PREFERRED The National Expenditure Commission’s recommendations in regard to the disposition of the revenue derived from motor taxation was referred to at Wednesday’s meeting of tho Oroua County Council, when circulars on the subject were received from the Counties’ Association.

After drawing attention to the commission’s proposals, the chairman. (Cr. A. Campbell) read the comment thereon which had been offered by the chairman of the Counties’ Association (Mr. Jull), and stated that ho fully concurred in that opinion. Cr. Campbell was opposed to the idea that motor taxation revenue should be paid into the Consolidated Fund, as well as to the argument that all highway grants should be subject to annual Parliamentary vote. Motor taxation was imposed for a specific and definite object, and motorists had submitted to the taxation on the definite understanding that tho money was to be utilised for improving the roads of the Dominion. That it should now be the desire to utilise part of these funds for other State services was altogether wrong. To do so would be to confess that all motor vehicle owners were a class apart singled out for special taxation. Further, the speaker felt that if the proposals were adopted the Main Highways Board would go out of existence, for without funds it would prove useless, as its power would be, subject to political control. The Oroua county, and in fact, all counties, had benefited substantially under the existing system, and while the speaker agreed with the necessity for practising economies, he failed to see the existence of any justification for the proposal of the National Expenditure Commission to have all motor taxation revenue paid into the Consolidated Fun'd. Moreover, he disagreed with the view that it, was not, right than any taxation should be earmarked for a special object. If that were so, why were the people being especially taxed for the definite object of relieving unemployment'?

Cr. T. Green: But that is only a temporary measure. In my opinion taxation should not be earmarked for special objects. The tax on beer, for instance, is not used for any special object. Cr. IV. McLennan: But one is not compelled to pay that if one does not drink beer.

The council generally agreed that great benefits had been conferred on local bodies by the operations of the Main Highways Board, and they did not desire anything to happen that would result, in the board going out of existence. It was decided to support thc Counties’ Association opinion and to solicit the support of the member for the district.