DERATING.

Waikato Times, Volume 109, Issue 18344, 2 June 1931, Page 3

DERATING.

AUTOMOBILE ASSOCIATION* VIEWS USE OF HIGHWAYS FUNDS. PROTECTION OF PRODUCERS. The policy of the Auckland Automobile Association was outlined by the touring manager of the Association (Mr R. E. Champtaloup), at an executive meeting of the Hamilton Agency of the Association last evening. ■ The president, Mr H. Toombs, presided over a good attendance. There were present, by special Invitation, members of the Waikato sub-provin-cial branch of the Farmers’ Union, Messrs W. Boyd and F. C. Roberts. “Derating was a term,” said Mr Champlaloup, “which was very hard to ’define as different interests placed different interpretations on the word, it seems to have come into prominence in the Auckland Province originally, as a medium to attract attendance in some districts a.t meetings which were being organised, but which did not seem to receive very great support. Since then, it had assumed a different aspeet. Some favoured what was termed ‘derating,’ others ‘partial derating.’ Up to the present, these applied to only one class of the com-, munity, the farmer. It was certain that if the farming community was to be completely relieved of its obligation to pay rates towards the construction and maintenance of roads, then all other seotlons of the community throughout the Dominion would demand the same privilege.

The speaker went on to say that the ‘good roads movement In 'New Zealand’ was Inaugurated to provide better access and road users had expressed themselves as willing to pay for this convenience. The A.A.A. was one of the prime movers in the Inauguration of the Main Highways scheme and the fact that motorists willingly came forward and offered to pay a special taxation for the construction and maintenance of roads, was in itself an acknowledgment that they had a direct Interest In roadlng matters. Original Plan Not Followed. As the number • of motor vehicles Increased, so the revenue from motor taxation became greater and on top of this, the petrol tax was imposed. A definite understanding had been come to between the .then Government and the motoring Interests, that the whole of the funds derived from motor taxation would be devoted to roading Improvements. Had the original conception upon which the Main Highways Board's finances were planned been followed in the last two years, there would not have been the need to raise the question of derating, because the original Main Highways plan, supported by the Automobile Associations, was designed to relieve county ratepayers of the cost of the better class of road provided for motor traffic. It had been stated “that the drain on county funds for main highways purposes leaves nothing available In some ridings for ordinary riding roads," vet by reference to the Local Authorities Hand Book, it was found “That for the six years the Main Highways Act had been In operation up to March 31, 1930, the counties contributed an average of 28.3 per cent of the cost of main highways, whereas motor taxation contributed 71.6 per cent." In the 1924-25 year, the first under review, the country ratepayers, contribution was as high as 35.4 per cent of tho total, but In the 1929-30 year, the extra assistance afforded by motor taxation had reduced this proportion to 21.9 per cent. The payments by the Board towards maintenance of highways over the same period of six years increased 8i times, whereas the counties’ payments increased only 3£ times. For construction purposes, the contribution by the Board Increased 4J times, but the counties’ share increased only 2i times. Turning to the latest available figures quoted for our own district, and taking the Franklin, Walpa and Waikato Counties as an example, it would be seen that the payments for the 1928-29 year from county rates for the construction and maintenance expenditure on roads were i 8 per cent for highways and 82 per .cent for other roads not classified as highways. The speaker emphasised the fact that those comparisions must not be allowed to overshadow the increasing amount of money which was being annually expended on roads, but he mentioned these figures to disprove partisan statements which had been published and which would lead to the belief that the farmer was doing everything and the motorist was more or less getting off scot free. Extra Petrol Taxation. The A.A.A. realised the urgent necessity to reduce taxation and was prepared to do everything in its power to relieve Hie farming community. The Association’s object was to; let the farmer know that if the •funds of the Main Highways Board

were Immune from interference, his burden would already have been considerably eased. The Association strongly opposed imposition of the extra taxation of 2d per gallon on petrol believing that it was to be diverted to other uses.

To-day they found that the farmer was paying this extra 2d and although the money was actually being paid over to the Main Highways Board, it was being used to fulfil obligations previously paid out of the Consolidated Fund. By this means, the funds o£ the Highways Board were depleted, last year to the extent of £640,718. This sum would have gone a long way towards providing subsidies to assist the counties. The speaker emphasised the fact that the taxation which was being imposed on roal users to-day was sufficient to relieve the country ratepayer to a very conconsiderable extent and although those counties whioh were just embarking on new construction schemes might not feel the real benefit immediately, there were In the North Island to-day quite a number of local bodies who had aotually reduoed rates owing to the reduced road oosts resultant upon the provision of better roads which during the past few years had been provided by the assistance of the Main Highways Board. In tihs week’s newspapers, the speaker had read that a county council was making a reduction in rates varying from 18 to 23 per cent. This was In a district where full advantage had been taken of the Main Highways Board subsidies. Widespread Protests. The Auckland Automobile Association had circularised all local bodies asking their support in the agitation to insist that the Government should refrain from its practice of commandeering the funds of the Main Highways Board. 'From one end of New Zealand to the other, wholehearted support \yas forthcoming from county councils, borough councils, town and road boards. Support had also been forthcoming in the following remit which was carried at the recent conference of the Farmers’ Union held at Hamilton and which read as follows: “That we ’emphatically protest against the proposed seizure by the Government of the Main Highways Board’s funds.” The speaker noticed a report a week ago from the same Conference of a suggestion for the formation of a "Country” Automobile Association. He did not think that such a move would be in the interest of road users or even in the interest of non-motor-ing farmers. His Association contended that It was extending service second to none, and that service was made possible only by extensive membership of the Auckland Automobile Association. This membership comprised all classes of political opinion, and the Association believed that It would be ruinous to the organisation to Indulge In political controversy or In any way to favour any particular parliamentary party. Many of the statements which had been made throughout the country concerning motor taxation and local body expenditure, to his mind, savoured very much of political suggestion and there were many instances where the Association could have quoted official figures which would have discredited many of these statements, but its policy with regard to politics had caused it to refrain. The speaker found that when lie had the opportunity of fully explaining the policy of the Auckland Automobile Association with regard to road finance to a farmer, the latter agreed tnat the Association was in no way unsympathetic to him and in most oases, lie warmly appreciated tile Association's attitude. Road Finance Discussed. On May 26, just a week ago, the representatives of the North and South Island Motor Unions at whioh the Association’s president was present, met the executive of the New Zealand Counties Assieation to discuss the question of road finance. r lhe following resolutions which were unanimously carried in lic it )I that the Automobile Associations and the County Councils were of one opinion with regard to the expenditure of the funds of the Main Highways Board. The resolutions read: 1. “That in the opinion of this combined meeting, we affirm tiia! moneys obtained from petrol taxation should be used solely for road purposes. 2. “That as soon as the exigency in regard to public flinance ceases to exist, the contributions from the Consolidated Fund to the Highways Board and the County Councils he resumed in recognition of the State's responsibility apart from that oi direct users for the provision of roads as a great public utility and the meeting desires that any renewal of the present legislation be limited as to time and come up for annual revue by Parliament. 3. "That a joint sub-committee be set up to go into the proposed increased charge by the Railway Department to the Main Highways Board for the use of railway bridges.”