PETROL TAX FOR ROADS

Taranaki Daily News, 15 October 1934, Page 11

PETROL TAX FOR ROADS

OPINION OF THE COUNTIES SUBSIDIARY ROAD MAINTENANCE. GREATER ASSISTANCE REQUIRED. STATEMENT TO TRANSPORT BOARD The views of the New Zealand Counties’ Association on various phases of taxation for road transport were recently submitted to the Transport Coordination Board. The association felt that heavy traffic license fees should remain, as they are a fair representation of the relationship to road wear of heavy and light traffic. It had been suggested that heavy traffic fees should be abolished and any deficiency in revenue made up by an additional tax on petrol. The association, however, felt this would be unfair, as it would in effect only .increase the disparity between light and heavy traffic without regard to the damage that would ensue through the use of lightly constructed roads by the heavy traffic. A small number of counties, in addition to the exemption from petrol tax of vehicles used entirely for road purposes, desired that farmers’ trucks used for the carrying of their own produce should also be exempt from heavy traffic license fees. Where roads were improved there was a tendency for traffic to increase in weight and velocity to an extent greater than the road surface and foundation would stand and regulations had to be rigid to safeguard expenditure so that it had reasonable relationship thereto. This was in the interests of the user and the taxpayer because if traffic were in excess of the road-bearing strain taxation must increase either to reinstate the road or increase the standard of the road. LIFE OF BITUMEN ROADS. The bitumen roads were not uniform in foundation or surface and it was not yet known by experience what the lifi of such roads would be under continuous heavy traffic conditions. This important factor inust be borne in mind when dealing with special heavy traffic license fees. The counties were practically unanimous that petrol taxation should be for the purpose of improving and maintaining the roading system and that at the earliest moment the special taxation of petrol for general revenue purposes should be abandoned. The association emphasised the. need for still greater assistance to the roading funds from the petrol tax. The Government had not only ceased to pay any contributions from the Consolidated Fund to. the highways fund, but also had actually transposed grants into loans and was now charging the highways fund with £61,000 interest annually. The association felt that the petrol tax should be continued and made avail-

able for road construction and maintenance only. It was felt that 30,000 miles of roads not under the jurisdiction. of the Main Highways Board should receive direct assistance from the petrol tax. A committee set up by the counties’ conference in 1930 reported as follows on the form of assistance desired:—That counties are now unduly burdened with rates to provide for the construction and maintenance of roads, which burden has not been lessened by the main highways contribution; that substantial relief is imperative; that all road expenditure is entitled to a contribution from the petrol tax as all roads are used by motor traffic; the committee recommends that, while the main highway ■ system should be maintained, an extra petrol tax of 3d per gallon should be imposed, to be entirely devoted to all road expenditure by county councils on roads other than declared main highways. NOT MAIN HIGHWAYS. It was suggested that assistance in respect to roads not main highways should be on the £1 for £1 basis. Such a method would be more equitable than the present subsidy on general rates and would have a direct relationship to the expenditure on the roads themselves. It would go a considerable way towards removing the disabilities at present existing in many counties where the percentage of main highways to the total roads was disproportionate. It would also contribute towards eliminating the feeling of injustice that had prompted the demand for the derating of rural lands. The association was strongly of the opinion that no attempt should be made to encroach upon the functions of county councils in the administration and control of the roading system of the rural districts and pointed out the very great services being given by members of county .councils. It was felt necessary to stress this because there were organisations, probably with imperfect knowledge’ of the local government system, inclined to advocate the centralisation of control of local government.

The association also pointed out that in other countries cities contributed substantially to the maintenance of county roads and pointed out that this principle was accepted in New Zealand prior to the petrol tax being imposed. The association favoured the continuance of the present tyre tax. It urged that drivers’ licenses should remain as at present with a more simple system of renewal, without the obligation of applicants having to attend personally .to answer questions already filled in on the original form. The association considered the present system of annual registration of cars had much to commend it. It was felt that a saving to motorists, could be made in the cost of number-plates. The association had no special recommendation to make regarding the duty on imported cars, except that a number of counties suggested that duties on United Kingdom cars be reduced, if not abolished.