REVENUE FROM PETROL.

New Zealand Herald, Volume LXVII, Issue 20623, 23 July 1930, Page 16

REVENUE FROM PETROL.

EXPENDITURE ON ROADS.

NEEDS OF THE BACK BLOCKS.

QUESTION OF DERATING.

[jiV TELEGRAPH. —SPECIAL Ili:r OUTER.] WELLINGTON. Tuesday.

What docs the Government intend to do with tho increased revenue derived from the higher petrol tax ?" asked tho Leador of tho Labour Party, Mr. 11. E. Holland, during tho Customs tariff dohate in the House this evening. Mr. Holland inquired whether tho additional revenue would go into the Consolidated Fund or whether it would ho applied to rondmaking. Ho said the inereaso in tho petrol tax was abnormal compared with other increases.

The Primo Minister, Hon. G. W. Foiljos, said that liy law tho petrol tax had to bo paid into tho Main Highways Account.

Mr. P. Fraser (Labour —Wellington Central): Dot s the Primo Minister intend to alter that'!

Mr. Forbes said it was not proposed to make a change. Tho petrol tax would receive greater attention in the Budget.

Mr. Holland: Will you say that this money going into lho highways account will lie used fur railways?

The Prime Minister s.'iirl it- would lio applied to country requirements and particularly rond niiikiiig in back block districts.

The Leader of ilie Opposition, Rt. Hon. ,7. Ci. (Joules, said ho was by no menus satisfied with the Prime Minister's statement relative to tlio petrol tax. So far he had heard no justification for the increase of threepence. "Lho increase should he considered only in relation to the working charges on land. Many of the country's best settlers had been reduced to a mere pittance owing to the progressively increasing charges, whilo at the sanii) tiino the prices of prod lets from the land were falling. Whatever increase in funds was necessary to meet loading costs should be considered only in relation to charges by way of annual rates. Thoso rates had been forced up by the demands of traffic, a large percentage of which was foreign to the district. Mr. Coates' tiino limit expired as lie was elaborating his point.

Including tlio surtax, tho new duty on petrol is 7.35 d per gallon, as against 4d previously.

INDEPENDENTS' ATTITUDE.

CRITICISM OF PROPOSALS. THE CONSTITUTIONAL POSITION. [r,V TELEGRAPH.—SPECIAL REPORTER.] WPJLLINGTOX. Tuesday. "The constitutional position is that the Government should resign," declared Mr. C. A. Wilkinson (Independent—Egmoui) in criticising the customs revision schedulo in the House this evening. Mr. Wilkinson referred to the Government's promises prior to the last election. Tho Government should frankly confess that it was unable to redeem those promises and should accordingly resign. Mr. Wilkinson's views hold special interest as ho has so far supported the Government on crucial tests, but may bo expected to change his allegianco if a division is taken when tho Customs Amendment Bill appears later in tho session.

Another Independent member, Mr. J. S. Fletcher (Grey Lynn) described Mr. Forbes as a " blind Samson pulling down the temple of tho country." He would offer uncompromising opposition to the petrol tax proposal. Mr. H. M. Rushworth (Bay of Islands), the solo. Country Party member of the House, who has also supported the Government on crucial divisions, expressed himself as greatly distressed at the proposals, while Mr. W. J. Poison, Independent .member for Stratford, said tliero would be consternation throughout tho country when to-morrow morning's papers were read.

Labour speakers wore scarcely less critical of some of the tariff proposals.

As Mr. Wilkinson remarked, it will be interesting to see in how many cases all these protests will be translated into action when a division is taken on the subsequent bill. Claiming to speak on behalf of nil (lie Independents, Sir. Poison said later that the constitutional position was that the Prime Minister should have his resolution passed, but tho bill would be hotly opposed when it came down.