SUBSIDY ON RATES

Taranaki Daily News, 8 March 1935, Page 8

SUBSIDY ON RATES

PETROL TAX UTILISATION.

FARMERS’ UNION DISCUSSION. While still declaring for the complete derating of farm lands, the South Taranaki executive of the Farmers’ Union yesterday decided to support the Counties’ Association in an endeavour* to have petrol tax continued for road construction and maintenance purposes only and to have the system of subsidy on general rates altered for a £1 for £J subsidy on roads other than main highways.

The discussion arose from a circular received from Dominion headquarters presenting views from a meeting between representatives of the Fanners’ Union and the Counties Association. The resolutions put forward as the result of a meeting between Messrs. H. E. Blyde, W. J. Polson, M.P., and R. H. Feisst (Farmers’ Union), and A. E. Jull, M.P., W. Morrison and C. J. Talbot (Counties Association) were: The petrol tax should be continued and should be made available for road construction and maintenance purposes only; that in lieu of the present system of subsidy on general rates which now obtains with a maximum of £2500 a year for anyone county, there should be substituted direct assistance in the form of a £1 for £1 subsidy from the petrol tax in respect of all roads other than main highways. If this policy were adopted, the committee considered it would be more equitable than the present subsidy on general rates and would have direct relationship to the expenditure on the roads themselves. At the present time the subsidy on local body rates was being paid out of the highways fund instead of out of the Consolidated Fund. The amount paid to counties last year was just on £135,000. Criticism of the resolutions on the grounds that they were definitely, put forward by the Counties Association, and were different from the Farmers’ Union stand in the past was made by several speakers, Mr. W. A. Sheat saying that the counties’ policy was at variance with the Farmers’ Union and that, in consequence, it , should not be upheld in entirety. He suggested, as an amendment, that the Farmers’ Union should stick to complete derating of firm lands, but that support should be given to the Counties Association in its desire to prevent the petrol tax being diverted to other channels.