FURTHER TAXATION FOR MOTORISTS IS NOW HINTED AT.

Star (Christchurch), Issue 18187, 21 June 1927, Page 12

FURTHER TAXATION FOR MOTORISTS IS NOW HINTED AT.

INFORMATION GIVEN BY HIGHWAYS BOARD. (Special to the "Star.”) BLENHEIM, June 20. Some very interesting and important information in relation to the Highways Board's finances, and the possibility of further taxation on motorists, was forthcoming in the course of Mr C. J. Talbot’s reply to a local body conference here. The conference, which was fully representative of the local bodies of the district, unanimously carried a resolution urging the Highways Board to reconsider its decision to improve the Redwood Pass section of the Blenheim Christchurch highway, the meeting stressing the desirableness, instead of attempting to improve the present road, of putting in a deviation via the Dashwood Pass, which would reduce the distance between Blenheim and Seddon by four ami a half miles. Mr Talbot, as the counties’ representative on the Highways Board, did not seem impressed with the request, and went as lar as to refer to the Dashwood Pass route, as not a vitally necessary work, but a frill. He explained that owing to the Government having decided this year not to borrow the customary £300,000 for highways construction, the Highways Board was reduced to borrowing £350,000 from its maintenance account for construction work. He said the money would be paid back, but in the meantime the board had to conserve its funds, and that was the main reason why it had offered to subsidise the improvement of the present road at a cost of £15,000 instead of the Dashwood deviation at a cost of £45,000. Motorists will be particularly interested in the news that the Government has raided the Highways Board funds to the extent of £300,000, even if it is only temporarily, for that is what Mr Talbot’s statement means. Instead of borrowing £300.000 as usual for new work, the Government is compelling the Highways Board to use for the purpose money received from motor taxation and earmarked for maintenance work. Mr Talbot added that the maintenance account was now so much depleted that maintenance subsidies to local bodies would have to be decreased, or some new form of taxation imposed to raise more revenue. He did not say so, but this probably forecasts the probability of a petrol tax, hints in Ihis direction having already been thrown out by the Prime Minister and by Mr Furkert. Strangely enough in his presidential address at the annual meeting of the Marlborough Automobile Association a few weeks ago, Mr P. P. Furness warned motorists and local bodies of the fact that such ari attractive sum as £350,000 was lying idle in the Highways Board’s maintenance account, and would prove a temptation to the Gov. eminent, if it got hard up, and he illustrated his point by drawang attention to the fact that the British Chancellor had appropriated the British highwavs fund to help make up his deficiency.