Dearer Petrol Rumour Alarms Motorists

Northern Advocate, 17 December 1938, Page 6

Dearer Petrol Rumour Alarms Motorists

t Special to “Northern Advocate'’ 1 AUCKLAND, This Day.

Mr A. Grayson, acting-president cf the North Island Motor Union made a statement yesterday that there was a

very persistent rumour cf an effort to obtain authority for an increase in Ihe price of petrol before Christmas.

it seemed incredible, he said, that the Government could even contemplate imposing any additional burden of taxation on motorists. “Such an infliction will be the last straw.” said Mr Grayson. "Motor vehicle owners throughout New Zealand are very seriously alarmed. Already over 40 per cent of the taxation collected by motorists is being used for the general purposes of government, and is not being paid into the funds of the Main Board.

Deaf Ears.

“We had hoped that the emergency tax of 4»}d a gallon which was imposed in the depth of the depression would have been lifted during these years of prosperity, but up to the present deaf ears have been turned to all representations.

“No less serious,’’ said Mr Grayson

“is the allegation that a proposal is being considered for the substitution of a horse-power tax in place of, or additional to, the petrol tax, as a means of deriving extra revenue from motorists.

In the past, it has been our experience that rumoured increases in petrol prices very often eventuate, and therefore, the Motor Unions will welcome a statement from the Government that it will not permit exploitation, and that it has no intention of granting authority to the oil companies to raise the price even one penny a gallon.” Strong Protest.

A statement that the A.A. (Auckland) was giving its strongest support to the action of the Motor Union in resisting further taxation by means of increased petrol prices, horse-power tax or any other additional charges or taxes, was made by the president of the association, Mr F. G. Farrell. The association, he said, had telegraphed to the Minister of Finance, the Hon, W. Nash, and the Minister of Industries and Commerce, the Hon. D. G. Sullivan, asking for a definite assurance that the rumour was without foundation. ( Ministerial Replies. Replying to inquiries by the A. A. (Auckland) concerning rumours of an increase in the price of petrol, telegrams received from the Hon D. G. Sullivan and Mr Nash read 'as follows: — From Mr Sullivan; “As you are aware, the price of petrol is fixed by the Government, and cannot be increased without Government authority. There has been no request to me for an increase in the price, and so far as I and my department arc* concerned, there is no evidence to support the rumour of an early increase in price.” From Mr Nash: “The Government has not before it any proposals for a further petrol tax or institutions of a horse power tax.