VAN LICENCE FEE

New Zealand Herald, Volume LXIX, Issue 21240, 21 July 1932, Page 10

VAN LICENCE FEE

CARRIER'S APPEAL FAILS CITY COUNCIL BY-LAW UPHELD [BY TELEGRAPH —PRESS ASSOCIATION] WELLINGTON, Wednesday An appeal against a judgment of Mr. Justice Reed, delivered in Auckland in March, when he dismissed proceedings brought by Frank Savory, carrier, of Mount Eden, for a declaration declaring void a by-law of the Auckland City Council relating to licence fees payable for motor-vans, was dismissed by the Appeal Court to-day.

At the hearing counsel for f appellant said the purpose of the action was to obtain a reduction of tho licence fees payable in respect of carriers' vans in Auckland. He submitted the licence fee of £2 charged by the Auckland City Council was greatly in excess of the fees claimed in the three Other main centres, and in view of other very heavy traffic licence fees payable by appellant, the charge was excessive. His main point, however, was that as the law stood, licence fees could not be imposed for the purpose of obtaining revenue, and as the by-law attacked by him virtually imposed special- taxation on van drivers, it should be quashed. - • Counsel for the City Council, in reply, said a licensing body was entitled to charge not only for the actual issue of licences, but for other services given by it. Fifteen per cent, of the fees collected was set aside by statute for collection and supervision of licences and tho balance was distributed among local bodies as attributable 16 other substantial services given. The value of the services rendered was not capable, of a reasonably exact estimation and the fee charged could not bo attacked unless it was obviously outrageous. The charge of £2 could be justified' having regard to the area in which vans were entitled to ply ano the services given them. The Appeal Court expressed the opinion that there was nothing to show that the licence fee of £2 was out of all prpportion to the services the council had to perforin, Jtnd, therefore, the appeal should be dismissed, with costs on the lowest scale as :from a distance. Separate judgments were delivered by the Chief Justice, Six* Michael Myers, and Mr. Justico Smith. Mr. Justice Adams and Mr. Justice Ostler concurred in tho judgment of the Chief Justice.