EFFECT OF RISE IN TAXATION

Southland Times, Issue 23897, 16 August 1939, Page 4

EFFECT OF RISE IN TAXATION

Motor Transport In

Dominion

INCREASED COST OF OPERATION

HIGHER CHARGES MAY BE NECESSARY

1 (United Press Association) WELLINGTON, August 15.

Recent increases in taxation had. increased the cost of operation of motor transport by approximately five per cent, according to a report presented to a meeting in Wellington today of the councils and branch representatives of the four national commercial transport organizations. Mr J. B. Cullen, president of the New Zealand Road Transport Alliance presided, and there were present representatives of the New Zealand Carriers’ Federation, the New Zealand Passenger services Federation, the New Zealand Taxi Proprietors’ Federation and the New Zealand Road Transport Alliance. The meeting was the largest and most representative of the interests concerns yet held in New Zealand.

The meeting considered that the increased taxation recently announced was not intended to be directly borne by the industry and that, in the absence of other considerations, commercial transport as a whole would have no alternative but to increase its charges commensurate with the increase in costs. FUTURE OF INDUSTRY . There were, however, other factors which had a great bearing on the immediate future of the industry which it desired to ascertain in assessing the incidence of the petrol tax in relation to the whole position. Of greatest.importance among those, were the legislation already contemplated to extend transport licensing control to taxis and town carriers with the consequent stabilization expected, the decision by the Government on the recommendations made at the request of the Minister of Transport (the Hon. R. Semple) involving future transport policy, and a review of the regulations affecting operating conditions with a view to the elimination of all possible undue restrictions. It was decided that, in the event of an assurance being forthcoming that those matters would receive the attention of the Government, the industry generally would not ask for any flat rate increase in charges. The industry, however, considered that certain sections with fixed charges would be unable to bear the increased, costs caused by the petrol tax and required the right for all engaged to have' consideration given to any application for increased charges. After a discussion of transport policy and administration, the following resolution was carried unanimously:

That this meeting, representative of the commercial motor transport industry places on record . its continued confidence in the Minister of Transport and expresses appreciation of his action in consulting the industry about future policy. The meet'fff will continue tomorrow.