MOTOR TAXATION.

New Zealand Herald, Volume LXIX, Issue 21133, 16 March 1932, Page 14

MOTOR TAXATION.

TRANSFER OF ROAD, FUNDS. SCHEME STRONGLY OPPOSED. EAR-MARKING PRINCIPLE UPHELD. The proposals of the National Expenditure Commission concerning motor, taxation were the subject, of discussion at the half-yearly meeting of the South Island Motor Union, held in Christchurch last Friday, at which representatives of the North Island Motor Union were present. Details of a statement issued on behalf of both unions were given yesterday by Mr. M. PL Wynyard, representative of tho North Island Motor Union on the Main Highways Board. Prior to 1929 free grants of £235,000 had been made to the Main Highways Board by the Government, Mr. Wynyard said, while the board received 92 per cent, of the petrol tax, in addition to the tyre tax and licence and registration fees. Since that date all annual grants had been withdrawn; the petrol tax had been increased to 8.4 d a gallon; and tho actual amount out of petrol tax available for tho board for main highways purposes was under 3d a gallon. 'ihe balance of 5.4 d a gallon, which, in a full year, would amount to approximately £1,200,000, was used either in relief of the Budget or of the farming community. The report stressed the importance of eflicient and adequate maintenance of main highways in order to avoid high capital expenditure at a later date. Die motor users of the Dominion were fully sensible of the need for sacrifice at present. However, it was felt that the extra taxation and the sacrifices that they had already made were very considerable, and that, as they had already contributed in their private capacities, they were, in a sense, subject to dual taxation. Strong exception was taken to the proposal that the road funds should be transferred to the Consolidated Fund. 1 hat proposal would be resisted to the utmost. It was held that the whole main highways system rested upon the funds being independent and administered by a board. The ear-marking of motor taxation for road purposes was recognised in practically every country in the world and had been emphasised at the recent Road Conference in the United States. It was the expressed basic principle on which Parliament had passed the Main Highways Act, and it bad been approved by the" Select Committee appointed last year to consider highways finance. There could be no object in destroying the road fund, as any temporary transfer to meet abnormal conditions could be made from the Highways Revenue Fund to the Consolidated Fund. It was believed that both local authorities and motorists would be opposed to (he proposal to merge the present Main Highways Board's funds with the Consolidated Fund. The suggestion of the commission that the funds should be subject to Parliamentary control was practically in existence already, inasmuch as. Parliament had to make the annual appropriations to the board. The unions hoped that tiie Cabinet might hear them in regard to the commission's proposals before any definite action was taken.