TAXING THE MOTORIST

Otago Daily Times, Issue 21580, 27 February 1932, Page 18

TAXING THE MOTORIST

THE HIGHWAYS FUND ASSISTANCE FOR COUNTY RATEPAYERS. (From Our Parliamentary Reporter, i WELLINGTON, February 26. Fears recently expressed by motorists that the Main Highways Fund was to be absorbed for general purposes by the Consolidated Fund appear to be groundless, but it is practically certain that the Highways Fund will again be called upon this year to assist country ratepayers, possibly to a greater extent than last year. There was cause to believe a short time ago that the Main Highways Act was in danger, chiefly because of the desperate state of the Treasury, and colour was lent to this impression by the Prime Minister’s statement last session that he personally did not favour the application of special taxation for special purposes. It is now gathered that the Act will remain, but the taxation from motorists, comprising the petrol tax, tyre tax and registration and license fees, will again be asked to devote a large sum toward the relief of other sections of the community. Last year £250,000 was handed over and applied to the 121 per cent, reduction in county rates. This year it is understood the amount is not likely to be any less, possibly greater, and will probably be applied to similar purposes, for country ratepayers are in no better position than when the last allocation was made. Motorists are afraid the Government might be contemplating imposing further taxation in view of difficulties which the State Accounts have encountered, but it is believed that official circles have not yet considered this question. Motorists themselves consider further taxation to be intolerable. They are carrying as much as they possibly can at the present time, they state, and any further burden would immediately cause to operate the law of diminishing returns, with the result that the State would lose rather than gain revenue. Cars would be forced off the road, and registrationswould fall away. Suggestions have been made by motoring organisations that relief work could be given from the Main Highways Fund for road construction. The Government is so placed financially, however, that all construction works of a comprehensive nature are to be ruled out for the present, and the money devoted toward keeping the roads in proper repair. Certain sums are to be spent on maintenance and adequate safeguards will be taken against the deterioration of main highways. New works will be reduced almost to nothing.