INCREASED PETROL TAX

Stratford Evening Post, Issue 7, 30 July 1930, Page 5

INCREASED PETROL TAX

MOTORISTS' OPPOSITION PRIME MINISTER’S APPEAL THE BEST COURSE ADOPTED WELLING JOT*. July 29. The Prime Minister (the Hon. 0. W. Forbes) in an interview, stated that he recognised that there was strong hostility to an increase in the petrol tax. ‘A national necessity has forced the policy to which the motorists propose to object, and 1 am hopeful that those who view the whole situation in a broad sense will ultimately realise that however they may object to the increased petrol tax it is the least unpleasant method of meeting «. difficult situation,” said Mr Forbes. 11 First and foremost, the consolidated fund, in other words the taxpayer, had to be relieved this year of as many burdens as possible, and among the burdens lifted have been made from revenue for road construction and road maintenance. There is no desire on the part of the Government to cease these payments if it is possible to make them, but it is just as well to recognise that they _ can no longer be made, and that as it is entirely a matter of road costs, the opinion of the Government is that road users should, as far as possible, bear that burden. Call on Consolidated Fund. “What is proposed in the Budget does not completely relieve the consolidated fund from this liability, because the revenue contributed by the general taxpayer is carrying a very big burden in respect of interest on road construction loans. The details of the Dominion’s public works expenditure to March 31 last, show that considerably over £18,000,000 has been expended on reading and that the taxpayer is finding the interest on that large debt. Thus a very substantial contribution is still being made by the taxpayer. The Government is also expending from general revenue a good deal of money in relief works on roads. This again is a big burden which neither the road users nor the local bodies are asked to carry, binder these circumstances, it is considered reasonable that the Government should ask the road user to carry a larger proportion of the financial burden of roads and in raising the petrol tax by threepence there will be some additional revenue also available for the direct benefit of secondary highways. ‘The Government had two alternatives,” continued the Prime Minister. “It was obliged to cease payments to the main highways account, and it had to decide either to make good the deficiency by a further tax or to curtail the finances on the Main Highways Board and local bodies. There is evidently considerable objection to relief being given through extra petrol tax, and if this- agitation is -successful it, only means that the burden of curtailed finance is thrown on the Highways Board and local authorities. Having ample proof of the necessity of relieving the consolidated fund, the Government considered that this could be achieved with the least amount of hardship by imposing the burden on those who get the benefit.

Prime Minister’s Assurance. “The Government would like to make this personal appeal to the motorist,” concluded Mr my assurance that this is a time of national necessity, which has forced the Government to undertake an unpleasant task. There was a big deficit to be avoided. -An easy way would have been to run into the financial morass and extricate the country by borrowing to meet tho deficit in the current revenue, but those who pm first in their minds tho Dominion’s high financial reputation, would deplore the adoption of such a course and admit, however reluctantly, that under the circumstances the Government has done the right thing.” INCREASE IN PRICE, SOME FIRMS ADD FOUEPENCE. WELLINGTON, July 29.' In tlie House ox Ropresentat.ves toiiigut xur J. x. Hogau asned xne Jt-riiuo iu in is ter whctUor no was aware tnat many service stations in cliiteicuc pans ux xne xionuiiiou uau. aiieauy increased tno petiui price by xourpence a gallon, oviueiiuy wuu me oujcct of raising the greatest oujecuon to the increased tax. x\ir Hogan pointed out that there was no ittcrcaaeu cost in nauaixng mo tor spirit, and as mere was no excuse for increasing tnc price uy as much as fourpunce lie asked the X-'rime minister io lane steps to prevent seen action. rur Forbes said he understood that the prmciptti nttiis ueie increasing prices uy no more than threepence a ganon. He would be pleased to look iiito me point raised by xur Hogan. .