HIGHWAYS WILL SUFFER

Sun (Auckland), Volume IV, Issue 1034, 26 July 1930, Page 11

HIGHWAYS WILL SUFFER

INCREASE IN PETROL TAX

A.A.A. ATTACKS GOVERNMENT Far from assisting greatly in relieving back-blocks settlers of their rates, the new petrol-tax of threepence a gallon will actually give little benefit to those in the country districts and will reduce materially the amount available for construction works by the Main Highways Board. This is the view of the Auckland Automobile Association council, which discussed the proposals at a special meeting yesterday. The association also declares .that the proposed methods of distributing the road funds involve a distinct breach of faith with the motorists on the agreement framed at the time of the establishment of the Main Highways Board. The following statement was issued by the council yesterday: “In the opinion of the committee, the various proposals of the Government are so confusing to the average motorist that the actual facts should be placed before members in town and country alike. It is desired that members should realise that the proposed increase in the petrol-tax is not likely to help roading to any great extent, and can only be interpreted as a desperate effort to overcome the shortages in general revenue. The country motorist is likely to pay more in increased petrol-tax than he will get back in the way of relief from ANOTHER RAID “The meeting considered that past pledges and promises made between the Government, local bodies and motoring organisations were being ignored. Last year a combined deputation representing local bodies, automobile . associations, county councils, borough councils, town boards, chambers of commerce and progress leagues from the North Cape to the Bluff strongly represented to the late Sir Joseph Ward then Prime Minister, that the proposal of the Government to deprive the Main Highways Board of its rightful annual contribution of £235,000 from the Consolidated and Public Works Funds was a breach of faith, and unjuist. The principles of the Main Highways Act and the validity of these contributions were affirmed when the Government gave way and acceded to the deputation’s representations. Now, in spite of these promises, the proposal has been again brought forward, and attempts a similar raid. “The committee places the following facts before the public: The principle underlying the original Main Highways Act provided for contribution by three interested parties—firstly, the motorist or road user; secondly, the country ratepayer, the value of whose land and whose amenities would b© raised by the improved access; thirdly, the Government, representing the inhabitants of New Zealand, whose convenience and profit would be served by the better facilities of transport given by up-to-date construction and maintenance of highways. “These principles, which are behind most of the highway systems in the world, will be abrogated by the new petrol tax and the proposed method of its application. The Government will make no contribution at all and in addition is requiring payment of interest upon the amounts, which, in the past, have been given free of interest to the Highways Board under the terms of the Act As a matter of fact, these amounts were paid by the Government for the construction of roads throughout the Dominion before the Main Highways Board came into existence and before motorists agreed to special taxation to augment these amounts. It will thus be seen that the Government proposes totally to ignore obligations which have always been regarded as a charge on the public funds. LITTLE COUNTRY RELIEF

“Except by the very small proportion of the increased tax allocated for back-blocks highways, the country ratepayer Is not relieved, but the amount which up to the present has been found by the Government out of the Consolidated and Public Works Funds is to bo placed on the shoulders of the motorist by the tax. “Another result likely to arise Is pertinent, namely, that the increase of close on 100 per cent, in the petrol duty, added to the other imposts made by the Budget on the earning power or income of the individual, will undoubtedly result in less use being made of cars and consequently less petrol being consumed. “Mr. M. H. Wynyard, motorists’ representative on the Main Highways Board, stated that owing to the fact that the surplus funds of the board which had accumulated in the past years were now much depleted the board had found it necessary to curtail the construction expenditure for the present year by £200,000, even after taking into consideration that it was estimated that the revenue from the existing tax of 4d a gallon would be slightly increased over last year’s amount. If the additional tax resulted in a decrease in the consumption of petrol the board’s funds wou.d be less than estimated and its activities must then be further curtailed. “The committee of the association considers that the objections voiced last year with regard to the £235,000 and the interest charges on £200.000 apply equally strongly today. The arrangements with regard to these amounts were the result of negotiations bet wen the motorists and the then Government, under which they agreed to the legislation providing for taxation for the construction and upkeep of roads. To recede from that position is breaking faith with the motorists and an insistence on the present demands is unfair and unjustifiable. “Another very important feature is the proposed deduction of approximately £220,000 which has previously been paid to local bodies in the way of subsidies. WILL DEFEAT OWN ENDS “For the above reasons, the association makes no apology for opposing the increase of the petrol tax and the proposed application of the proceeds therefrom. It is of the opinion that the excessive increase will defeat its—own ends and both motorists and local bodies will suffer severely as a result. “As a result of the proposals the Main Highways Board will be forced to bear the following olharges, which previously have been paid out of other funds. Previous annual contribution to the« Main Highways Board from the Consolidated Fund .. .. £35,000 Annual free grant from the Public Works Fund, being equivalent to the amount paid by the department toward the construction of roads now main highways, before the passing of the Main Highways Act 200,000 Interest on past amounts granted free of interest by Parliament 61,300 Subsidy on local body rates previously borne by the Consolidated Fund 220,000 Total - additional charges imposed on the Main ' Highways Board .. £516,3^0 “The estimated-income from the increased petrol taxation is £875,000, which will leave the board an annual sum of £358,700 for back-blocks roads. The above estimate of £875,000 of additional revenue is based on the present consumption of petrol, but it is certain that the additional tax will result in a reduction in petrol importation and consequently not only will the revenue from the extra tax not reach the estimate, but the revenue from the present fourpenny tax will show a marked decline.”