RAID ON ROAD FUNDS.

New Zealand Herald, Volume LXVII, Issue 20626, 26 July 1930, Page 16

RAID ON ROAD FUNDS.

PROTEST BY MOTORISTS.

ASSOCIATION'S STATEMENT.

INCREASED TAX OPPOSED

LESS REVENUE INVOLVED

Tho increased petrol tax and the proposed alterations in main highways finance are definitely opposed by the Auckland Automobile Association, which holds that they will not appreciably help backblocks road construction, will leave the Main Highways Board with less money to spend, and will not relieve the country ratepayer. Tlio association also declares that tho changes are a distinct breach of the agreement mado with the motorists ■when tho main highways scheme was framed

The position was considered yesterday nt a special meeting of tho committee, at ■which Mr. M. 11. Wynyard, motorists' representative on tho Main Highways Board, was present. Subsequently the following statement was issued : '"ln the opinion of the committee, the various proposals of the Government are so confusing to the average motorist that the actual facts should bo placed before members in town and country alike. It is desired that members should realise that the proposed increase in the petrol tax is not likely to- help reading to any great extent-, and can only he interpreted as a desperato effort to overcome the shortages in general revenue. The country motorist is likely to pay more in increased petrol tax than he will get back in the way of relief from rates.

Another Raid Attempted. "The meeting considered that past pledges and promises made between the Government, local bodies ami motoring organisations were being ignored. Last {•ear h combined deputation representing oeal bodies, automobile associations, county councils, borough councils, town boards, chambers of commerce and progress leagues from the North Cape (o the Bluff strongly represented to tlte Into Sir Joseph Ward, then Prime Minister, that the proposal of the Government to deprive the Main Highways Board of its rightful annual contribution of £235.0 CX) from the Consolidated and Public Works Funds was a breach of faith, and unjust. The principles of the Main Highways Act and the validity of these contributions were affirmed when the Government gave way and acceded to the deputation's representations. Now, in spite of these f)roinises, the proposal has been attain irought forward, and attempts a similar raid.

"The committee places the following facts before the public: 'J'he principle underlying the original Main Highways Act provided for contribution bv three interested parties—firstly, tho motorist or road user; secondly, the country ratepayer, tho v'alue of whoso lajid and whoso amenities would bo raised by the unproved access; thirdly, tho Government, representing the inhabitants of NewZealand, whoso convenience and profit would bo served by the better facilities of transport given by up-to-date construction and maintenance of highways.

Charge on Motorists.

"These principles, which are bfchind most of the highway systems in tho world, will be abrogated by the new petrol tax and the proposed method of its application. The Government will make no .contribution at all and in addition is requiring payment of interest upon tho amounts, which, in the past, have been given free of interest to the Highways Board under tho terms of the Act. As a matter of fact, those amounts were .paid by the Government for the construction of roads throughout the Dominion before tho Main Highways Board came into existence and before motorists agreed to special taxation to augment these amounts. It will thus be seen that the Government proposes totally to ignore obligations which have always been regarded as a charge ou the public funds. "Except by the very small proportion of the increased tax allocated for backblocks highways, the country ratepayer is* not relieved, but the amount which up to the present has been found by the Government out of the Consolidated and Public Works Funds is to be placed on tho shoulders of the motorist by the tax. "Another result likely to arise is pertinent, namely, that, the increase of (lose on 100 per cent. i:i the petrol duty, added to the other imposts made by the. Budget on the earning power or income of the individual, will undoubtedly result in less use being made of cars and consequently less petrol being consumed. "Breaking Faith."

"Mr. 'M. H. Wynyard stated that owing to the fact that thb surplus funds of the hoard which had accumulated in the past years were now much depleted the board had found it necessary to curtail the construction expenditure for the present year by £200,000, even after taking into consideration that it was estimated that the revenue from the existing tax of 4d a gallon would bo slightly increased over last year's amount, if the additional tax resulted in a decrease in the consumption of petrol the board's funds would be less than estimated and its activities must then be further curtailed. "Ihe committee of tlie association considers that *Ke objections voiced last year with regard to the £235 XOO and the interest charges on £200.000 apply equally ttready to-d;.y. Ihe arrangements witii regard to these amounts were the result of negotiations between the motorists acd the then Government, under which they agreed to the legislation providing for taxation for the construction and upkeep of roads. To recede from that position is breaking faith with the motorists and an insistence on the present demands is unfair and unjustifiable. ' Another very important feature is the

proposed deduction of approximately £220.G0D which has previously been paid to local bodies in the way of subsidies. Less Money for Highways. 'lor the above reasons, the association makes no apology tor opposing the increase oi the petrol tax arid tiie proposed application of the proceeds theieiioni. It is of the opinion that the excessive increase ■will defeat its own ends and both motorists and local bodies will suffer severely as a result.

" As a result of the proposals the Main Highways Board will be forced to bear the' following charges, which previously have been paid out of other funds:Previous annual contribution lo the Main Highways Board from the Consolidated Fend . . . . £3i>,ooo Annual free jrrant from (lie Public AVorka Fund, equivalent to tbo amount paid by the department toward the r.opstrii'.tiofi of road* now main highway*, l,efor« the parsing of the iff/.n Disrhwsy* Act . . Wl.Mt Interest on pas). tr;.',-i? U artr.U-ti free of interest by Subsidy on !o'd! horiy ii>i -.c. vicualy borne :>■/ Fund Total adfllt joriid rKt r ;;*■ ? ,; ,v- ! on the .Mam vy.i>> <■* . i'\; " The c.y.Umiit ft\ \Ttffftr," ir'fh (},/> \t, ! creased petrol taxation i* ,U7',///). I v. ill leave the board an arm-Mi s-.m of £353,700 for back blo< k•. roads. 'i he nbovo est iniale r.f £tt75.000 of )rI,» u ir ,., | revenue is based on the preserif ron sumption of petrol. but it is certain that, the additional tax will result jn a. reduction in petrol importation and consequently col only will Iho esUmn'h- T"'l U ." 5 CXlra l:,x "»«•'reach the ' entTr revenue from the prosclinc. U * will s,low a marked do-