PETROL TAX

Otago Daily Times, Issue 23882, 9 August 1939, Page 10

PETROL TAX

COST TO MOTORISTS SOME ILLUMINATING FIGURES A UNANIMOUS PROTEST In view of the fact that a protest against the increase in petrol tax had already gone forward to the Government from the combined associations, the question did not, as might have been expected, become a major issue at last night's meeting of the executive of the Automobile Association (Otago). The most interesting features of the discussion were a list of figures supplied by the South Island Motor Union which strikingly illustrated exactly what the motorist now has to pay in taxation, when he fills the tank of his car, and the opinion expressed by members that the protest was of doubtful value. , A letter received from the South Island Motor Union suggested that the various associations should send to their members a circular letter in which the itemised tax per gallon on petrol was shown. It was pointed out by the union that there was a surtax of one-twentieth of the tax levied as Customs duty, so that instead of the tax on petrol being Is 2d per gallon as was generally believed, it was actually Is 27-10 d per gallon. It was further stressed that when a motorist bought one gallon of petrol, Is 27-10 d of the cost went to the Government in tax, if he bought four gallons, the tax amounted to 4s 10 8-10 d, while if he bought 10 gallons, he was paying no less than 12s 3d in taxation. The union invited the co-operation of all associations in presenting a united and Dominion-wide clamour for equity in the matter of unjust taxation. The president (Mr P. W. Breen) remarked that a protest had gone forward to the Government from affiliated associations representing 100,000 motorists. If the Government would net take any notice of this, it was doubtful if anything else could be done. Mr E. J. Anderson: Why go to the expense of sending out circulars? Does anyone in this room believe that it will do the least bit of good? Before we spend money, I suggest that we ask ourselves what good it will do. It was decided to incorporate reference to the protest and to the Motor Union's letter, in the association's annual report. WELLINGTON TAXI FARES NO INCREASE EXPECTED INDUSTRIAL CO-ORDINATION URGED (Per United Press Association) WELLINGTON, Aug. 8. Taxi fares in Wellington are unlikely to be raised as a result of the increased cost of petrol. Drivers consider that savings in advance of higher costs can be effected by proper co-ordination of the taxi industry. At a special meeting to-night the board of directors of the Wellington Co-operative Taxi Ownerdrivers Association decided that the company did not intend to make an application for any increase in taxi fares. It called on those responsible to so reorganise the taxi industry that the present useless duplication of telephone and stand systems with consequent fierce and unnecessary competition would be abolished. This would bring to the public a greatly improved taxi-cab service without any need for increased fares and would be in keeping with the suggestions made in the report of the 1936 committee of inquiry into the taxi industry. The directors stated that they did not think any of the other interests in Wellington would apply for an increase in fares. The increase in the price of 4d a gallon on petrol would mean, it was estimated, a total cost of about £4OOO to £SOOO a year to the taxi industry in Wellington. They considered, however, that greater wastage than that was taking place through the unnecessary duplication of services involving extra overhead expenses, not only in operating costs but in stand rentals and telephone costs. A suggestion was that the various taxi-cab companies should cooperate closely, particularly in their system of calls. The public should simply have to telephone one number at any time, instead of ringing through a list of competing companies at crowded periods, and the car most convenient in time and nlace would be sent to answer the call. Constantly under the present system services were being duplicated through cars taking passengers to distant suburbs and returning empty, while others went put empty to bring in to town passengers from the same suburbs, and at the same time all this would be eliminated if the proposed reorganisation were made. The directors pointed out that they endorsed whole-heartedly the recommendations made by the committee of inquiry, as a result of which their organisation had been formed and had had the commendation of the Minister of Transport (Mr R. Semple). The committee had recommended that steps should be taken to ameliorate cut-throat competition, improve the financial stability of taximen, provide reasonable returns on capital, and reasonable earnings and hours for drivers, and to ensure reasonable fares, comfort and safety for the public. The Christchurch taximen had decided to increase their fares, but in Christchurch completely different conditions prevailed. Wellington, moreover, had had an increase in taxi fares a little more than 15 months ago. POSITION OF CARRIERS LICENSING AUTHORITY'S VIEWS (Per United Press Association* WANGANUI, Aug. 8. Mr J. P. Skoglund, chairman of the Transport Licensing Authority, sitting at Wanganui, said he hoped carriers would review the position brought about by the increased cost of petrol with calm contemplation and endeavour to arrive at some solution. More effective organising of the transport industry would more than offset the effect of the increase in the price of petrol, and he thought this was a step the licensed operators should lake. Two classes of carriers.

however, would be adversely affected —mail carriers and cream collectors, and something should be done for them to minimise the effect of the increased price of petrol. If the whole of the increased price was put on the user it would mean that carriers would be getting more than their fair share. He considered that carriers should bear their share of the burden and not ask lor an increase in the tariff schedule until after March 31.