MAIL CONTRACTS.

Timaru Herald, Volume XCVIII, 21 July 1925, Page 5

MAIL CONTRACTS.

“A MORAL CLAIM.’

DEPUTATION TO PRIME

MINISTER

The introduction of the heavy traffic by-laws under the Motor "Vehicles Act was stated by a deputation that waited on the Prime Minister to have left at a disadvantage many of the mail contractors who had already signed their contracts. They were required to pay a good deal more in taxes each year. Tho Prime Minister, tho Hon. J. G. Coates, was asked to increase the mail subsidy as a means of relief for mail contractors.

Introducing the deputation, Mr E. A. Ransom, M.P. (Pahintua) explained that they realised that it was not fair to ask the Government for a reduction in taxation. The increase in subsidy would apply only to vehicles which came under the heading of two tons and over. Continuing, he said that the legislation had boon passed after the contract had been signed, and tho contractors had been thereby placed at a disadvantage. Mr H. J. Knight said that mail tenders were lot at the latter end. of last year, and these were signed without realising that in a very short time the tax under the Motor Vehicles Act would be due. They had come along to ask for some relief. They would ask for an increase of 15 per cent, on tho tenders. Mr Knight said that he quito realised what a difficult problem it was, but tho tenders had been put in without tho knowledge that they would be required to pay tho new tax. Those concerned were objecting only to tho heavy lorry tax.

Mr Coates: You know, of course, that you have no legal standing? Mr Knight: Yes. but I believe the Post Office authorities arc sympathetic tc the contractors. Mr D. E. Robson said that in carrying out their contracts they had other penalties, including the tyre tax. Ho thought that they were perfectly justified in asking the Prime Minister to review the position. Mr Coates : “Yes, it would mean about SOOO iv year.” Personally I think that you have a. moral claim.” Continuing he said that many of the cars of the contractors had did not come under the operations of the Act. Tho Department had had many requests, some of which had been settled. Mr A. T. Markham, Secretary to the Post and Telegraph Department, said that morally the Department should do something ' for tho contractors, but strictly speaking it was not required to do anything. Mr Coates and ho had talked the matter over previously, and they had come to the conclusion that an increase of 10 per cent, would lie reasonable. He said th.at tho Department would give consideration to the extra payment to mail contractors based on a percentage in the mail contractors’ prices or a percentage on heavy taxes for vehicles used for mail services. Mr Contes pointed out that under tho heavy traffic, by-laws some of the contractors wore paying less in Southland than they did before the regulations came into force. The object of tho regulations was to make the tax even nIT over the country. He said that the localities would have to he taken separately in the matter of the arrangement-.