MOTOR VEHICLES TAXATION

Northern Advocate, 23 June 1925, Page 7

MOTOR VEHICLES TAXATION

ROPING IN" TAXI CARS,

MINISTER'S REPLY CHALLENGED..

At the conference of local authorities held in Whangarei a month ago to deal with the problem of control of heavy traffic the licensing of motor vehicles used for hire or for commercial purposed under two tons laden weight, was discussed. It was decided to write to the Minister of Internal Affairs upon the subject and it was pointed out to him that, as the law stood, it did not appear possible for a county council to license motor vehicles unless they were actually "plying" for hire within the interpretation laid . down in Blackburn v. Buchanan. A borough council could not charge a fee for plying for hire beyond the cost of issuing a license and inspection of vehicle. As the whole of the vehicles which mostly ran over the roads of Whangarei Coutny were domiciled in the Borough of "Whangarei and did not strictly ply for hire within the County, within the meaning as laid down in the case cited, it meant that that class of vehicle, under two tons and used for taxi and commercial purposes, escaped its share of taxation. A seven-seater motor vehicle over two tons laden was required to pay at the rate of 30/ per passenger, yet seven and fiveseaters and commercially used motor vehicles, all under two tons laden, in actual practice got off with, in the case -of motor vehicles plying for hire only, a small amount payable to the Whangarei Borough Council to cover cost of licensing and inspection. The Conference considered that aspect most unreasonable and' urged that the Act be amended to empower both borough and county councils to directly tax such vehicles in return for their use of roads and streets. It was asked that the Minister should interest himself, in the hope that suitable amending legislation might be framed and passed next session.

In reply, by direction of the Minister, Mr G. Newton, Assistant UnderSecretary, wrote that the Motor Vehicles Act did not take away from local authorities any rights previously possessed by them in respect of vehicles plying for hire, but a section of the Act limited the powers of local authorities to make charges in respect of vehicles plying for tire only. It was admitted that certain County Councils, including Whangarei, had at one time power to license all vehicles using county roads, but it had to be remembered that that power was given prior to the passing of legislation dealing with main highways and motor vehicles, special provision being made in the Main Highways Act for the apportionment of moneys received in respect of the licensing of motor vehicles or as customs duties, and County Councils were therefore already paid moneys in respect of the licensing of motor vehicles. The under secretary also drew attention to the point that, under the Motor Vehicles Act, local authorities received fees from the licensing of all

motor drivers. He was also directed by the Minister to state that he was unable to see his way clear to introtluco an amendment of the Motoi Vehicles Act giving local authorities power to license all such vehicles, irrespective of whether they plied for hire or not. In a further communication with the .under-secretary, the Whangarei County Council again urged that the need of amending legislation was really

urgent, especially in the case of live and aeven-seater motor cars, under two tons laden, plying for hire. It was pointed out that in the Whangarei district there were five motor lorry service cars of over two tons laden weight which paid, under the regulations, at the rate of 30/ pet passenger. There were also approximately 25 taxi ears and service cars, all fn e and seven-seaters, under the two tins laden weight, which were garaged in Whangarei Borough, and all in competition in the usual way. with the motor lorry service cars. All used the same roads, chiefly county, and competed on an equal footing, and that was the point, that whereas the motor lorry service ear paid at the rate, ;of 30/ per passenger the other service ears and taxis escaped a corresponding tax, in that the Borough was not legally empowered to license them, and the County Council, in view of the legal interpretation placed on the word "ply" was in actual practice precluded from exercising the statutory right given it in

cases of vehicles plying for hire. It was added that owners of the motor lorry service cars complained bitterly of the unfairness. The points of the under-secretary's letter were fully understood, but it was stressed that the urgent need for giving some relief still remained. The Council suggested that the difficulty could be overcome by giving a suitable statutory meaning to the words "plying for hire," and therefore urged that the matter be given favourable reconsideration. It is understood that the Otamatca County Council has replied to the Minister in a similar strain.