PETROL TAX ALLOCATION

Taranaki Daily News, 16 November 1927, Page 9

PETROL TAX ALLOCATION

THE SOUTH ISLAND'S F r ARS MONEY MAY BE DIVIDED UNFAIRLY NORTH TOO KEEN ON BORROWING By Telegraph.—Press Association. Wellington, Nov. 15. A fear which was expressed when the Motor Spirits Tax Bill was before the House last week that the South Island would not receive its fair allocation of money derived from the tax was further voiced by a deputation of South Island members which waited on the Premier and the Minister of Public Works this morning at the request of the motor organisations. The main point expressed by Mr. Sidey, the chief spokesman, was whether the Government would reconsider the allocation of the petrol tax so as to place the allocation of the money on the same footing as the tyre tax insofar as the apportionment between the North and South Islands was concerned. Cook Strait was an effective bar to the cars of one island using the roads of the other. Only a handful passed from one to the other. After others had spoken Mr. Coated turned to Mr. Williams and asked “Have you any intention of robbing the South Island, Mr. Williams?” “I certainly have not. The only suggestion of the kind comes from the South Island,” Mr. Williams replied. Mr. Coates said that the Government could not agree to the request for a definite allocation, and pointed out that the Bill had passed the House. It was not a question of taking from one island to another, or from one county to another. Each county would be considered according to its requirements and its special loading difficulties. He deprecated the raising of the question of North versus South with regard to allocation and eaid that it was quite unfounded. Mr. Williams had already indicated that he was prepared to coneider during the recess the question of giving South Island motorists more representation on the board. He suggested giving the legislation a trial. It could be reviewed later. Mr. Hamilton: You people in ,the North Island are too keen on borrowing money. The South Island people like to live within their means. Mr. Coates: That is so, and it is very wise.

PROFOUND DISSATISFACTION. “SOUTH PAYS FOR NORTH ROADS.” Dunedin, Nov. 15. At a meeting of the Chamber of Commerce Mr. 8. B. MacDonald, who was present as a representative of the Otago Expansion League, moved: That this meeting of the chamber expresses profound dissatisfaction at the non-allocation of the petrol tax between each island, and requests members of Parliament to insist on the insertion of a clause in the Highways Aet Amendment Bill now before the House giving effect to such allocation on the basis of the petrol used in each island. Mr. MacDonald spoke strongly against the Government’s proposals and expressed the opinion that, unless a strong protest was made, thd whole of the money raised by the petrol tax would be spent in the North Island. He said South Island roads were put in their present condition by the people, who made a present of them to the Government at the time of the aboh tion of the provincial councils. Tim Government had given practically, nothing towards the cost of roads in the South Island, and yet the South Island had given millions for roads in the North Island. The South Island wanted either an allocation on a 50 —50 basis, or the money spent in the island in which it was collected. The motion was seconded by Mr. G. J. Williamson, who expressed the opinion that the bulk of the tax would be spent in the North Island. Mr. A. Barnett said he would like all the associated bodies in Otago and Southland to discuss the matter in a comprehensive way and to send such a strong delegation to Wellington that the Government must listen to them. Mr. MacDonald said the action suggested by Mr. Barnett had been taken. The Expansion League had organised the matter and the voice of the South Island would be heard very strongly in Wellington. The motion was carried unanimously.

HUTT ROAD TAX TO BE GIVEN UP. WELLINGTON COUNCIL PROTEST. Wellington, Nov. 15. When the petrol t ..x allocation was first announced the City Council expected to get £10,009, which was immediately ear marked to pay interest on the paving loans. They were then dismayed to find that the city was to be asked to give up the special Hutt Road tax and to take over that part of the road within the city area, which, instead of an increase of £lO,OOO in revenue, would mean an actual loss of more than £lOOO per annum. Strong hostility was expressed to this remarkable financing, and the Mayor now states that the Government has promised it will be altered, and the city will receive the £lO,OOO, clear of drawback.