PROTEST AGAINST PETROL TAX

Southland Times, Issue 23888, 5 August 1939, Page 12

PROTEST AGAINST PETROL TAX

FARMERS OBJECT TO CLASS IMPOST

SERIOUS EFFECT ON BACK COUNTRY SETTLERS

A strong protest against the increase in the petrol tax was made by the Southland provincial executive of the New Zealand Farmers’ Union yesterday, but one delegate raised objection to a description of it as a class tax and said it would bear equitably on all sections of the community. The following telegram had been forwarded to the Prime Minister (the RL Hon. M. J. Savage) and the Leader of the Opposition (the Hon. Adam Hamilton): We emphatically protest against further class taxation on petrol. The farmers are already overloaded. The tax means a further addition to transport costs. It will seriously affect production. _ „ A reply from the Hon. H. G. R. Mason for the Minister of Customs stated that the representations would receive due consideration. Mr D. H. O’Brien said the executive should put forward a stronger protest. He had no words in his vocabulary sufficiently strong to express nis feelings. The extra taxation was going to press very heavily on the back country fanner for whom a motor-car was a necessity. The extra taxation was likely to cost back country farmers £lO directly and possibly another £lO or £l5 indirectly. He moved that the executive protest against the tax in the strongest possible terms. The following remit from the Limehills branch was accepted as the motion: “That this executive strongly protests against the further tax of 4d a gallon on petrol for the following reasons: (a) "It will again put up the cost of production by increasing transport charges on lime, manure, and so on, on to the farm, and lambs and other produce transported off the farm. (b) “It will put petrol-driven tractors out of commission because of the high cost of this fuel, and allow power kerosene to rise in price because of tire wide gap between these fuels.

(c) “The farmers are at present paying a heavy rate for the upkeep of roads. Why should they be again loaded with a further taxation on petrol? (d) “This will also increase the cost of delivering milk to the cheese factories and further reduce the farmers’ income.

(e) “It will spell the ruin of the back-country farmer who has to depend on petrol for the pumping oi •water and supplying other amenities.” Mr D. McDonald said fishermen received a rebate of 8d a gallon and he suggested that the farmers should apply to be put on a similar basis. A voice: The fishermen don’t use the roads.

Another voice: And they don’t pay rates.

Mr A. H. McLean said the Prime Minister (the Rt. Hon. M. J. Savage) had described the petrol tax as a luxury impost It was not a luxury tax as petrol was used in production. A tax on liquor, sugar, tea, racing and amusements could have spread the tax most equitably. Mr J. A. Taylor described the tax as a class tax.

Mr J. E. Hickey denied that the tax was a class tax. Farmers owned only a small percentage of the motor-cars in the country and the tax would bear equitably on all classes. A voice: Nothing of the sort. Mr O’Brien moved an addition to the motion that the extra charge on the back-country farmer not served by electricity would be put “out of action.” The addition was accepted and the motion carried, Mr Hickey voting against it.