OPINIONS OF MEMBERS.

New Zealand Herald, Volume LXVII, Issue 20623, 23 July 1930, Page 15

OPINIONS OF MEMBERS.

HIGHER TAX ON PETROL.

SEVERAL PROTESTS MADE.

USE OF FURTHER REVENUE. [BY TELEGRAPH. —PRESS ASSOCIATION.} WELLINGTON. Tuesday. When the House resumed this uvening proceedings were accorded urgency and the House resolved itself into a Committee of Ways and Means to deal -with resolutions affecting the tariff. In making his statement the Prime Minister, Hon. G. W. Forbes, said:—'"Tho Government has given careful consideration to the question of the duty on petrol, and it has been decided to increase the present rata to 7d a gallon. Ilia reasons why thi.% increase is made will bo fully explained in the Budget."

The Leader of the Opposition, Right Hon. J. G. Coates, asked whether it was intended to treat the increased petrol tax as ordinary revenue, or was it to be paid into the Highways Fund. The Leader of tho Labour Party, Mr. H. K. Holland, said it seemed tho Government was adopting tho principlo of getting revenue by indirect taxation. He considered that necessaries which could not be produced in New Zealand should be admitted duty free, while goods which could be produced in the Dominion should be subjected to a protective rather than a revenue-raising tax. With regard to the petrol tax ho asked how industries, particularly ,the carrying industry, were to be affected. " The Overburdened Taxpayer." Mr. A. Harris (Reform —Waitemata) said the Government's only objective seemed to be to extract more and mora from the already overburdened taxpayer. Mr. T. Armstrong (Labour—Christchurch East) said tho imposition of the increased petrol tax would drive out a number of men in business in a small way. Furthermore, the tax did not give protection to any industry. Mr. (J. A. Wilkinson (Independent— Eginont) expressed regret that the duty on wheat had not been removed. The Hon. W. Downie Stewart (Reform — Dunedin West) said he did not think the New Zealand industries should bo protected by an embargo. They should bo afforded some protection, but they should not bo placed behind a brick wall. Mr. C. H. Chapman (Labour —Wellington North) said there should bo a provision that a percentage of the motor-cars imported should bo without bodies, which could bo manufactured locally. Replying to tho various questions Mr. Forbes said tho extra petrol tax would be paid into the Highways Fund. It would be disclosed in the Budget what would be done with the money. The petrol tax was now the same as in Australia. He did not believe in giving any industry a monopoly, as it would "always be better from a certain amount of competition. Cinematograph films would be dealt with in the Budget. Combating Abnormal Clearances.

In reply to Mr. Stewart the Prime Minister said the reason for anticipating the Budget was to combat abnormal customs clearances. The reason for increasing the duty on cigars was to place them on the same footing as cigarettes. The system of a stipulated number of locallybuilt motor bodies had not worked successfully in Australia. Several members expressed the opinion that the resolutions would provide a disagreeable surprise for the country. Mr. 11. M. Hush worth (Country—Bay of Islands) protested against tho increased duties, which ho described as a blow to industry. The additional taxation, ha said, would be passed on to the primary producers and in consequence exporters would b$ placed at a further disadvantage. Mr. H. G. R. Mason (Labour —Auckland Suburbs) advocated additional protection for the New Zealand wine industry. He said there was only 6s duty on wines, compared with 36s on other intoxicants.

Mr. G. C. Black (Government— Motueka) urged that all packets of tobacco and cigarettes claimed to be locally-grown should bear some mark indicating the actual percentage of local product in the contents. The duty on New Zealand tobacco, he said, should not be increased.

Mr. W. Nash (Labour —Hutt) said he estimated that the actual tax on petrol would be a gallon, because a subclause of the fifth resolution provided for a stipulated addition in lieu of primage duty. This would mean that the duty would be increased bv over 100 per cent. " Price oI Petrol Too High."

Mr. W. H. Field (Reform —Otaki) expressed the view tliat somo means should bo devised -whereby it -would bo possible to import petrol more cheaply. At present, he said, the prico was 100 high. With the increased -tariff it would become almost prohibitive. Mr. R. Semple (Labour —Wellington East) submitted that the petrol tax would aggravate the problem of unemployment, and said it would put many struggling carriers out of business. Mr. 11. E. Holland appealed to the Prime Minister to take tho House into his confidence with regard to what lie intended to do with the proceeds of the increased petrol tax. lie said it seemed to ba an impression that the Government was entitled to have its resolutions passed, but when the details came before tho House for subsequent consideration, the Labour Party would take action where it considered it necessary. Mr. Forbes said the petrol tax proceeds, when paid into the Highways Fund, would be used for tho counties' requirements and road making, particularly back-blocks roads. Details of the proposals would be contained in the Budget. Tho petrol tax would not amount- to B£d, but would be seven and Eeven-twcr.tinths pence when the surtax was added and the primage duty deducted. Mr. Coates said he agreed tint Government was entitled to the passage of the resolutions, but ho presumed that no member was bound to support the proposals merely by his voting lor the iesoiutions.

Amendments Predicted. Mi - . W. K. Barnard (Labour—Napier) said there wevo many things in the proposals which many members would consider gravely. Tim Government was likely to finil it necessary to accent several important amendments. Mr. J. S. Fletcher (Grey Lynn) asked why it had been necessary to anticipate the Budget when it was duo in two days' time. Ho said the policy statement should liavo accompanied proposals such as those beforo the House. Mr. W. K. Parry (Labour —Auckland Central) agreed with this view. Ho said the Government was asking the country to "open its mouth and shut its eyes flnd seo what the Government would give it." i\lr. W. J. Poison (Independents-Strat-ford) said lio believed the Government could have obtained tho additional revenue by taxation on luxuries. Air. E. J. Howard (Labour — Christ • church South) said lie would like to know how much money there was in the highways account. "Ho could not see how tho additional revenuo was necessary. The Highways Board had not spent the money already at its disposal. lie feared the petrol would kill the goose that laid tho golden egg. Mr. Wilkinson said the Government, perceiving that it could not fulfil its pledges to the. country, should have resigned rather titan submit such proposals. Mr. Poison, speaking for the Independent members, said they would not oppose the resolutions, but they would bo guided by what appeared in th» Budget in hotly opposing the Customs Bill. Tho resolutions were then adopted ly the committee and the House rose at« U. 58 p.m* 205Q jum, to-jnorrow<

Tho petition was referred to tlio board in committee.