THE TAX ON PETROL.

New Zealand Herald, Volume LXIV, Issue 19792, 12 November 1927, Page 12

THE TAX ON PETROL.

BILL BEFORE HOUSE.

RESPITE FOR DEALERS.

EXPENDING THE REVENUE.

NORTH AND SOUTH QUESTION.

[BY TELEGRAPH. —PRESS ASSOCIATION.] WELLINGTON. Friday. The Motor Spirits Taxation Bill was further considered in Committee by the House of Representatives to-night when some important amendments were made. Mr. H. Atmore (Nelson) moved an amendment to reduce the tax on motor spirits from 4d to 2d. The Minister declined to accept the amendment which, on a division, was defeated by 39 votes to 19. Mr. T. K Sidey (Dunedin South) moved that the money raised from the petrol tax should, at the discretion of the Mam Highways Board, be expended in the North and South Islands on the basis of the number of motor vehicles in each island. He said he had drafted hit amendment in strict accordance with the present law which provided for revenue derived from the tyre tax and registrator fees being distributed on this basis. He saw no reason why one portion of revenue shonld bo allocated in one way and another portion in another way He hoped this would not be regarded as a question of South versus North. It was not intended so, but was merely asking the Government to be consistent.

Mr. W. D. Lysnar (Gisborne) strongly objected to the amendment. It might be in the present Act but two wrongs did not make a right. Mr. D. G. Sullivan (Avon) contended the amendment provided for the expenditure of money in the island in which it was collected The amendment was permissive, not mandatory. Mr. G. W. Forbes (Hurunui) maintained some such provision in the bill would help to allay a great deal of turmoil over the question <?f main highways, because there was a feeling that the South Island had not in the past got its fair share.

Mr. V. H. Potter (Roskill) at this stage sought to interpose with a prior amendment increasing the allocation of revenue to the cities under clause 8 from 8 per cent, to 12 per cent. The Prime Minister said he had been discussing this aspect of the case with the Wellington City Council, but as yet no decision had been reached. What was decided with regard to Wellington would apply to other cities as far as was practicable. The chairman of committee ruled Mr. Potter's amendment out of order on the ground that ;t should have been moved earlier, and consideration of Mr. Sidey's amendment was lesumed.

On resuming after supper the Minister said lie could not accept, the amendment, not that he wished to set island against island, but he did not agree that the original legislation on which Mr. Ssidey relied was right. He did not know how long he would be administering the fund, but whilo lie did so he wanted to be fair. So far as he had seen of the South Island the parts on which the greatest expenditure was required were away from the main highways, namely, tho West Coast, and he wanted the fullest liberty and latitude id spending the money where it was most required. At a later stage amendments were adopted providing for the exemption from the petrol tax of motor spirits shipped from the country of export on cr before November 8 of this year, and any motor spirits which have or may be shipped to the Chatham Islands for use there at any time. Power is given to the collector of customs to make refunds, without any further authority, of duty which has been paid on motor spirits exempt from the tax. The' bill as amended was passed.