TYRE – TAX INCOME.

Waipa Post, Volume XXI, Issue 1280, 12 August 1922, Page 8

TYRE - TAX INCOME.

■NO DISTRIBUTION TO LOCAL

BODIES

Many persons have been wondering "what is being done with the large amount of money that during the past year has been collected in the form of tyre taxes from owners of motor vehicles. The following letter sent recently by the Minister for Public Works ('Hon. J. G. Coates) to the member for Waitomo (Mr W. T. Jennings) shows to what use-- the tax is being put: “In reply to yours of 22nd June, supporting the resolution of the Ohura County Council, urging that funds accumulated by way of tyre tax. should be allocated among lo’cal bodies and made available for use during the current year for maintenance and repair of main roads used for motor traffic, I have to state that the tyre tax was imposed for a specific purpose, and the money so derived has been specifically ear-marked by the Finance Act to the Main Highways Fund. It was the Government’s intention to have passed main highways legislation last session, but owing to local body objections to some of the provisions proposed it was not possible to do so. The matter is again under consideration with a view to introducing a Bill this session, and in the meantime the tyre tax is accumulating. It was the intention of Parliament that this tax should be available for the proposed 'Main Highways Board, and even apart from the specific provision in the Finance Act of last session, it would be .unwise to distribute the money already accumulated amongst local bodies, as proposed. 'lf the amount at present accumulated was spread all over New Zealand it would not effect any material improvement, and, furthermore, it is essential that when the Main

Highways Bill is passed, and the Board constituted, the Board should have a considerable sum of money immediately available to carry out, at any rate, a part of its operations. I regret, therefore, that 'I am unable to favourably entertain the application which has been made for the immediate distribution of the money to local bodies.”