THE NEW TAXES.

Timaru Herald, Volume CXXV, Issue 18629, 26 July 1930, Page 8

THE NEW TAXES.

RAID ON MOTORISTS. NEW PROPOSALS STRONGLY CONDEMNED. By Telegraph—Press Association WELLINGTON. July 25 . The proposals in the Customs tariff and the Budget touching motorists were strongly condemned by Mr A. E. Ansell, Reform member for Chalmers, and president of the South Island Motor Union, in an interview this evening. He said the proposals would be met by great opposition from motorists in general and organised bodies. In the petrol tax alone £750.000 would be paid' The discontinuance of grants from the consolidated fund and Public Works Fund, and the payment of interest on a basis of the transfer of £1,226.000 from Public Works funds to the Highways Construction fund was unjust, and reflected no credit on the authors of that evasion of moral responsibility. In the past grants had been made by Parliament free of interest. The Government was throwing the whole cost of 10.000 miles of roads on motorists and local bodies, and refused to contribute anything towards their maintenance. Petrol tax was a clumsy way to tackle the matter of putting road competition with the railways “on a more equitable basis,” for many roads and their users were not in competition with the railways. With all the extra taxation, the highways programme could not be expedited nor counties given any substantial assurance. Town and cities, although contributing heavily to the fund, received no benefit. Motoring was taxed like a luxury, but it was not. AUCKLAND OPINIONS.

By Telegraph—Press Assoc>ati<«i AUCKLAND, July 25. Mr M. H. Wyngard, motorist representative on the Highways Board, said it was possible that the increase in the petrol tax might reduce consumption, with the result that the funds on which the Board depended for maintenance and construction might be very much less than estimate. The proposal to grant a special subsidy for new' subsidiary highways in outlying districts appeared contrary to the original object of the Act, which related to main highways only. Mr Spence, secretary of the Auckland Racing Club, said the higher totalisator tax would probably cause a reduction in stakes, and an increase in illegal betting with bookmakers. Mr Mabee, secretary of the Trotting Club, said: “We accept the position with a smile, because everything is taxed. That is all there is to it. The taxation is going to turn the betting public to the bookmaker more than ever.” Mr Henry Hayward, theatre director, said: “It is not a case of a swollen head with the Government, but a swollen overhead.” The amusement tax was being imposed at a time when business was staggering under the effects of the talkie revaluation. The tax on lower price tickets was a direct impost on the worker. If Parliament insisted on the higher grade of the tax on talkies, it should insist that it should not be passed on to the exhibitor. It if were passed on, many of the smaller businesses would be forced to close.

THE TOTALISATOR TAX. By Telegraph—Press Association WELLINGTON, July 25. The President of the New Zealand Racing Conference, Mr O. S. Watkins, approached with regard to the increased tax from the totalisator, said at this juncture he thought it best to say nothing. The Secretary of the Conference, Mr Sellers, said it came as a blow. The proposed increase of 2S per cent, made ! the first charge on the totalisator 12i per cent. Of this, the Government would take 5 per cent., and clubs 7i per cent. The dividend tax remained at at 5 per cent., making the total charge 17£ per cent. Thus each £1 invested on the totalisator immediately shrunk to 16/6. SOUTH ISLAND HIT. By Telegraph—Press Association CHRISTCHURCH, July 25. “It looks as if the South Island is going to be worse off than ever,” said Mr J. S. Hawkes, secretary of the Canterbury Automobile Association, referring to the Highways Board finances. “The Government is robbing the Board of £235,000, and putting an extra 3d on the petrol tax. When taxation on motorists was first proposed it was intended exclusively for highways. Then secondary highways were added. Now r it is being used to bolster up the consolidated fund. It is being made the most unjust tax.” Mr Hawkes said the money made available for the improvement of backblack roads would be spent in the North Island. “Where are our backblocks?” he said. CHRISTCHURCH VIEWS. By Telegraph—Press Association. CHRISTCHURCH, July 25. Referring to the proposal to impose a further tax of 2 h per cent, on totalisator investments, Mr J. H. Williams, president of the New Zealand Metropolitan Trotting Club and the New Zealand Trotting Association, said: “If this is done, it is only right that the Government should see that legislation is passed permitting Clubs to receive money and also to institute a double totalisator if desired. If the Government is sincere, it will surely grant this relief.” Concerning the Budget generally, the general opinion in the City is that increased taxation was necessary, but business men consider that much more could have been done in effecting economies in Departmental expenditure. MOTOR UNION PROIKST. By Telegraph—Press Association. CHRISTCHURCH, July 25. The executive of the South Island Motor Union to-day held a special meeting to consider the Budget proposals, and carried the poliowing resolution:— “That this meeting protests against alterations to the Main Highways Act, which will be necessary to carry out the proposals contained In the Budget, viz., withdrawal of the annual grant ot £35,000 to the revenue fund, and the annual grant of £200,000 to the Construction Fund. It also emphatically protest against the proposal to charge interest on grants already made under the Act.”