PETROL TAX

Otago Daily Times, Issue 26746, 15 April 1948, Page 8

PETROL TAX

BIGGER SHARE WANTED LOCAL BODIES’ CLAIMS “For the last 21 years, 92 per cent, of the motor taxation available for roads has gone into developing the network of highways connecting the various centres,” stated the Mayor ot Wellington, Mr Will Appleton, when moving a remit on petrol tax allocation at the conference of the Municipal Association yesterday. Mr Appleton explained that the petrol tax tor the year ending March 31, 1946, was distributed as follows: —To Consolidated Fund, £2,724,000; main highways, £1,505,700; and to boroughs over 6000 population, £115,900. Mr Appleton added that more than half the motor taxation was paid on trucks which operated mainly in the large centres and did not generally tour long distances. Because of the parking of thousands of motor cars daily on the streets the ratepayers were being put to enormous expenditure in providing additional road space in the larger centres. The cost of road construction to overcome this congestion in the cities was very much heavier per mile of road than similar costs in rural areas. “Wellington, particularly, is faced with huge expenditure in providing new internal highways such as its proposed tunnel under The Terrace.” With petral rationing in force, Mr Appleton added, it was not likely that the amount of revenue allocated to all boroughs over 6000 population would exceed £120,000. If the 8 per cent, were increased to 20 per cent, the sum available would fall short of what should be spent in meeting the growing congestion. The additional amount should come from the portion of the tax which was paid into the Consolidated Fund, and not from the highways allocation. ’ Mr G. Belton, chairman of the Counties’ Association, who seconded the adoption of the remit, said Mr Appleton had only referred to petrol taxation. Taxation on cars, however, amounted to over £5,000,000 a year. He believed there should be a general review of the position, and that cities as well as boroughs should get a larger proportion. The Counties''Association, Mr Belton added, had arranged for a conference in May with the motor unions and the Municipal Association, when the whole question would be considered. . The remit, which was carried, stated: “That representations be made to the Government urging that a larger percentage of the revenue from the petrol tax be allocated to boroughs having a papulation of 6000 or upwards, particularly to cities whose streets are congested by motor traffic.”