HIGHWAYS AFFAIRS

Northern Advocate, 5 November 1931, Page 9

HIGHWAYS AFFAIRS

FINANCE PROPOSALS ; COMMITTEE’S REPORT. OXE DISTINCT FUND. (Pm- Association.—Copyright.) WELLINGTON, This Day. Important recommendations arc contained in the report of the Select Committee set up to inquire into highways finance in general, and into the allocation of proceeds of the petro tax in particular. The report was tabled in the House of Representatives yesterday. The rccommittoe recommended that the separate fund now- called the Highw-ays Fund should be maintained, but that it should in future bo designated the Roads and Bridges Fund, and that all proceeds from motor and petrol taxation should be paid into this fund, and also that the whole fund should be earmarked for reading purposes. This would call for the amendment of existing legislation. In addition, this fund should lie called upon to contribute, substantially to the construction' and maintenance of roads other than highways. The roconimittee recommended that the system of automatic allocation should be instituted. “Sums in the fund mentioned,” stated the report, “shoflld be automatically allocated to road districts similar to the principles adopted in the. allocation of Public Works expenditure of a dcvel- j opmental nature, but utilising factors more suitable to the particular requirements of ordinary main roads.

Petrol Prices, In the opinion of the committee, based on the evidence heard, there is a definite indication that petrol is a present-day necessity and that consumers in New Zealand are being charged too highly for the commodity by those, who have control of supply and distribution. As the committee cannot recommend the Government to undertake the conduct of this essential industry, it recommends that the following protective measures be adopted by legislative enactments: —- ‘'(a) That the maximum selling price to importers in bulk at terminal points be fixed at 2d a gallon, plus import duty above the. -world parity price; (b) that the maximum selling price, in bulk tanks in New Zealand, be the maximum buying price, plus 2d a gallon; (c) that any financial person requiring 200-gallon lots or more should have the right to buy at these prices.” As an alternative, : the committee suggested that a foreign corporation tax of at least 3d a gallon should be levied on foreign corporations operating in New Zealand. Evidence which the committee received showed that the initial invoices and charges l for freights, etc., had boon manipulated, with the result that the national revenue had not received the income, tax if would have otherwise received. In the opinion of the committee, the suggested foreign corporation tax might produce the desired result.

Derating Ami Grouping,

Tlio committee was in favour of relief being given in the direction of derating farm lands for reading purposes.

With reference to boroughs of under GOOD inhabitants (in particular, those who have completed most of theiiv paving without assistance from the Main Highways Board), it was suggested that legislation bo introduced to allow these boroughs the option of applying to bo grouped ivith cities and boroughs of over 6000 inhabitants for the purpose of receiving contribution from the 8 per cent petrol tax allocation for direct distribution among cities and boroughs of over 6000 inhabitants, the Main Highways Board to have full jurisdiction in considering and granting

applications. With the exception of Newmarket, all other boroughs under 6000 inhabitants have their arterial routes declared main highways, and they receive a subsidy from the board towards the cost of construction and maintenance. Whore the application of any borough under the proposal is approved by the board, the board should have the power to revoke the declaration of main highways under which such boroughs receive contributions for construction and maintenance. given careful consideration to Ihis important subject, the committee earnestly recommended the Government to give effect to the decisions reached.

Excessive Profits. Speaking after the report had been .Raglan) said the investigation into presented, Mr \V. L. Martin. (Labour, the importation of oil and petrol had shown that petrol could be landed in the Dominion at 1/o,} a gallon, and the cost of distribution was not more than 3d a gallon. There was no doubt that oil companies had been reaping excessive profits. Mr J. S. Fletcher (Independent* Grev Lynn) said it was alleged that the oil companies’ accounts had been manipulated, and If that were so the companies had not been paying full income tax. M,r C. F. Macmillan (Reform, Taurnnga) said If effect were given to the roeommendations of the committee, and the paired duty raised to lOd a gallon, there would ho a return in the highways' duty of £2,8113,000 a 1 voar, or £1,333,000 mofc than the (duty of fid provided. A substantial

drop in price to the consumer would enable a greater amount of petrol to bo used, The committee, which was appointed on July 8, comprises Messrs C. IT. Clinkard (Rotorua), chairman, A. E. Ansell (Chalmers), 11. T. Armstrong (Christchurch East), W. J. Brofldj foot (Waitorno), 11. M. Campbell (Hawke’s Bay), E. F. Healey (Wai* ran), C. E.‘ Macmillan (Taiirrmgaß W. L. Martin (Raglan), the tton. Ei A, Ransom, Minister of Lands, ahd Messrs IT. M. Rushworth (Bay of Islands) and W. B. Taverner (Dtlnedin South).