MONEY FOR HIGHWAYS

Taranaki Daily News, 24 July 1930, Page 13

MONEY FOR HIGHWAYS

INCREASED TAX ON PETROL DOUBT ABOUT DISPOSAL OF FUND. ALLEGED RECKLESS SPENDING. Discussing at a meeting of the Taranaki Chamber of Commerce last night the increase of 3d in the petrol tax that comes into operation to-day, the chairman (Air. J. McLeod) said that if the Main Highways Board would only spend the money on backblocks roads, the purpose for which the tax was stated to be levied, people would not mind. It would be a blessing in disguise if the money was expended say in opening up good highways from Taranaki to the Ohura mid other partially developed districts. The trouble was, however, that one did not know what the Main Highways Board would do. It was a law unto itself,' out of reach of even Parliament, and had the power to do just what it liked. Mr. A. F. Sandford said that at the present time it was disastrous to impose such a petrol tax, as it. was a direct charge on every commercial house at a time when they all had to face another hurdle in the new Customs duties. The trouble was that it seemed very doubtful whether the Main Highways Board was going to spend the petrol tax in the right direction. Mr. S. E. Shaw said the imposition of the petrol tax-at the present time was an extraordinary thing.' It was not a revenue-producing tax. It meant that the Highways Board was to receive practically another £BOO,OOO a year from the public. It looked as though 1 the Government was , striking a deliberate blow at motoring in order to check that sort of expenditure. 'Mr. McLeod thought the petrol tax was a step towards, assisting the farmer in derating. The farmer had asked for a sixpenny tax and he had been met halfway, with a threepenny one. The original petrol tax of 4d a gallon produced a sum of approximately £1,250,000. Another 3d would realise another £BOO,OOO, which meant that the board was to be given about £2,000,000 to-spend. ■■■.-. -■ .■ Mr. Sandford: We are not getting value for our money. ' , Mr. Shaw: • The more money the board gets the more lavishly and recklessly it spends it. In view of the meagre information available as to the expenditure of the money obtained by the increased petrol tax it was decided to take no action in the matter until further details were provided in the release of the Budget to-night.