MOTORING TAXATION.

New Zealand Herald, Volume LXVIII, Issue 20827, 20 March 1931, Page 12

MOTORING TAXATION.

RUMOUR OF FURTHER IMPOST

NO OFFICIAL CONSIDERATION.

LATER INVESTIGATION POSSIBLE. _____ [BY telegraph.—special reporter.] WELLINGTON. Thursday. Apprehension has been expressed by motoring interests throughout New Zealand at the persistent suggestion that 'the Government contemplates imposing further taxation ori the motoring public, particularly in the direction of a horsepower tax, similar to that which has lieen operating in England for many years. • ,

While admitting that before the session ends he must find avenues through which to draw an extra £850,000 in direct and indirect taxation, the Prime Minister, the Rt. Hon. G. W. Forbes, said to-day that the sources of that additional revenue .would be determined largely by the reception which was accorded his other economy proposals in*the House of Representatives. "I have to get £850,000 from taxation," Mr. Forbes said, "and at the moment I can only say this revenue will come from direct and indirect taxation. My taxation plans will be formulated as soon as possible after the disposal of the measures now being considered by Parliament. So far the Government has not gone into the question of imposing further taxes upon the motoring public." Farmers Who Own Cars. Although the possibility of motor taxation is a real one, for no source of rovenue is absolutely safo from particular attention at present, there are several excellent reasons why Mr. 'Forbes will probably consider it only as a last resort. Nearly 50 per cent, of motor-vehicle owners in the country belong to the farming community and any additional burden upon motor-cars, whether it be a horse-power tax or an increased petrol tax, must react heavily on farmers and nullify in some degree at least the efforts Parliament is now making to enable tho primary producer to withstand the hardships of the economic depression. When Mr. Forbes was in London he conferred with members and officials of the Ministry of Transport and was shown some of tho detrimental effects of the operation of the horse-power tax in England, chief of which" was the restriction of enterprise in motor-car construction by confining engines to low horse-power and opening the door to higher-powered foreign cars on the overseas market. It was felt in England also that the horsepower tax, although equitable upon paper, has failod to exact revenue according to the use of the roads.

Main Highways Funds. The motoring public and local bodies are already suffering through the stoppage last year of the usual contribution of £35,000 from the Consolidated Fund to the Main "Highways Fund and it is practically certain that this year s amount also will be retained by the Government for ordinary purposes, with a corresponding restriction on highways construction throughout the Dominion. "We do not ftnow ourselves," Baid Mr. Forbes, "but as soon as wo ascertain how the country receives our other financial and economy proposals, sources of extra taxation will-be determined and bills will immediately bo brought down for the consideration of the House."

PROTECTION OP INTERESTS.

CO-OPERATION ADVOCATED,

The suggestion that the time had come for the motorist, the farmer, the county ratepayer and' local bodies to co-operate to protect their interests under the Main Highways Act, which were > now very much in common, was made in a letter received by the City Council from the Auckland Automobile Association last evening. In submitting an official statement of the combined associations of the North Island, delivered at a recent meeting of the North Island Motor Union, in regard to motor taxation, the Auckland Association emphasised the fact that the funds derived from motor taxation were sufficient to effect a very considerable reduction in county rates if the Highways Act was applied as "was originally agreed between motorists and tho Government. » The council decided to refer the matter to its by-laws committee.