THE PETROL TAX INCREASE.

Taranaki Daily News, 31 July 1930, Page 10

THE PETROL TAX INCREASE.

Even his political opponents must acknowledge that there is little to cavil at in the tenour of the Prime Minister’s reply to critics of the increased petrol tax. They may not admit the soundness of his arguments, but they will agree that they are given in a dispassionate and reasonable manner, and with no appeal to party politics. Mr. Forbes’ justification of the Ministry’s proposals stresses three points: First, • the necessity for relieving the Consolidated Fund wherever possible to avoid still further increases in ordinary taxation; second, that even allowing for the funds raised by the petrol tax the general taxpayer has still to bear the interest upon £18,000,000 spent upon roads; third, that unless more money is available apart from local rates the work of the Highways Board and of local authorities in regard to road improvement or formation must be seriously curtailed. Most people will agree that these are statements of facts. Whether the position has arisen through extravagant administration, or from other preventible causes, is another matter, but that the position is as stated by the Prime Minister must be admitted, however unpalatable it may be. It is also certain that 'the limit has been reached in local body rating, especially for backblocks roads, yet there is nothing more essential to future land settlement than road access to the holdings thrown open. It is true that when the first petrol tax was raised- there was an undertaking given to local authorities and motorists that the revenue from it would not be available for general taxation, and that it would be used entirely for roading purposes. An alteration of the law, modifying this undertaking to some extent, is necessary before, the Ministry’s proposals can become law. Circumstances have altered, and it is no new experience for one Parliament to revise or repeal the legislation of its predecessors. Mr. Forbes does not burke this issue, though he endeavours to show that his new proposal does not in spirit depart from the principle that the funds from the petrol tax are to be used for roading purposes. He has appealed to motorists to view the question nationally, to weigh the advantages of better roads with lighter running costs against the higher tax, and to come to the assistance of their country at a time when a special effort is demanded. It rather looks as though the onus is upon his opponents to show a wiser course,, in all the circumstances, than the one the Prime Minister is advocating.