PETROL TAX CUT

Taranaki Daily News, 15 August 1930, Page 9

PETROL TAX CUT

REMISSION OF ONE PENNY

CONCESSION BY PREMIER

PROVISION FOR LOADING

BENZINE COST INQUIRY

By Telegraph.—Press Association.

Wellington, Last Night.

'Mr. J. G. Coates moved in the House of Representatives to-day that the proposal to increase the petrol tax be referred back to the Government for further consideration with a view to the Government giving an assurance that the money would be used for easing the burden of costs on users of the roads

and ratepayers. The amendment was ruled out of order as it related to a clause of a Bill which has not yet been reached. Mr R. A. Wright moved that the tax be reduced to sd. Mr. A. Harris moved a further amendment to reduce the tax to 4d, but this was ruled out of order on the ground that it would in effect amount to a restoration of a tax which had been. rethe first part of the schedule was disposed of, Mr. Forbes stated if Mr. Wright’s amendment was carried there would be a shortage of money for local bodies, and they would have to go without. He' did not propose to treat the matter as one of no-confidence. Mr. Coates asked why local bodies should be singled out to suffer for a shortage of funds. Why should there not he pro rata economies applied to other departments ? Mr C. A. Wilkinson said there were other ways of getting money. He objected to members of a useful section of the community being crushed out of existence. ■. Mr. D. Jones said if the Prime Minister could not find the money to carry on the affairs of the country there was only one thing for him to do Mr W. A. Veitch stated that the finance for which the Government could be held responsible was not involved m the present case. What was involved was the finance for the Highways Board. , . The debate on the amendment continued till 7 a.m., when the Prime Minister moved to report progress. . lhe House then adjourned till 2.30. STRONG FEELING AROUSED.

When the House resumed this afternoon Mr. Forbes said since the House rose he had been going into the matter of the petrol tax. Realising there was strong feeling as to the amount that was being added he was quite prepared to meet the House by making the extra dutv 2d instead, of 3d. < “In doing this” said Mr. Forbes, I want to say that that is the greatest extent to which the Government will go in the matter.” s „ It had been stated by Opposition members that the petrol tax was a policy matter on which they should stand or fall, and he thought there was a good deal in what had been said. It was a matter in which the Government was deeply concerned. He did not wish the Government or himself to remain under any charge of a bread.i of faith. When the amendment, before the House reducing the tax- to 5d was disposed of he intended to move a reduction m the tax from 7d to fid. “What about backblock roads.' asked a member. ’ Mr. Forbes said he would endeavour to make extra provision for \ ack J lo< * roads through the Public Works fund. ' The Prime Minister said he picferred that money for reading in the backblocks should be paid out of ordinary revenue instead of from the Pub Works funds, which were borrowed money. In regard to the proposed reduction of the petrol tax he said the companies were at present absorbin o one penny of the increase. There was no guarantee that they would continue to carry this share if a reduction were adopted by the House, but he thought they would be wise if they did. There had, Mr. Forbes continued, been numerous references during the debate to the price of petrol to consumers compared with the cost of landing it,and he felt the country should have full information on the subject. He would undertake to have an investigation made during the recess. . In reply to other points raised Mr. Forbes said he might have to make some adjustments in other taxes to compencate for the loss of revenue involved in the proposed reduction in the additional petrol tax to twopence. Mr Wright’s amendment to reduce the total petrol tax to fivepence was then put to the vote and was defeated by 17 votes to 53. . Tire division list i 8: “* AYES (17). Ansell Linklater Barnard McKeen Burnett Mason Dickie J* 1 Endean Sykes Fletche’ Wilkinson Harris Wright Jones Young Kyle NOES (53). Armstrong Lysnar Atmore McCombs Bitchener McDonald Black McDougall Broadfoot MacMillan Campbell MacPherson Carr Makitanara Chapman Massey Clinkard Munns Coates Munro , Cobbe Murdoch De La Perrcllc W. Nash Donald Ngata Field Parry Forbes Ransom Fraser Samuel Hall Savage Hamilton Semple Hawke Smith Healy Stallworthy Hogan Stewart 11. E. Holland Sullivan Howard Taverner Hunter Veitch Jordan Waite Langstone Williams Lye The Prime Minister then moved that the tax be reduced to sixpence and this

was adopted by 4G votes to 25. The division list is:-— AYES (4G). Atmore McCombs Bitchener McDonald Black McDougall ' Broadfoot MacPherson Campbell Makitanara Carr Massey Chapman Munns Clinkard Munro Coates Murdoch Cobbe W. Nash De La Pcrrclle Ngata Donald Parry Field Ransom Forbes Samuel Fraser Savage Hawke Smith Healy Stallwortby H. E. Holland Stewart Howard Sullivan Hunter Sykes Jordan Taverner Langstone Veitch Ly e Williams NOES (25). Ansell Kyle Armstrong Linklater Barnard Lysnar Burnett McKcen ninkie MacMillan Endean Mason Fletcher K A. Nash Hall Sem P le Hamilton Waite Harris Wilkinson Hogan Wright H. Holland Young Jones Prime Minister moved an amendment that oils in vessels having a capacity of less than one gallon should pay. ft duty of 20 per cent, ad valorem or sixpence a gallon whichever returned the higher duty. This was . agreed to on the voices,. Mr. Forbes pointing out that the amendment was necessary in order to secure uniformity,*