PETROL TAX.

Press, Volume LXIII, Issue 19147, 2 November 1927, Page 9

PETROL TAX.

MINISTER IN DEFENCE. WHY REVENUE IS NEEDED. [THE PBEBS Sptci&l S#r*iee.] WELLINGTON, November 1. The point that the new petrol tax of fourpence a gallon would mean that the price of motor spirit would be raised only to what it was eighteen months or two years ago, and also that experience had shown that increases in the prices of petrol were accompanied by an increase in the consumption, was made by the Minister tor Public Works (Mr Williams) when replying to the debate on the new tax in the House this morning. The resolution which gave effect to the tax was passed by the House at twenty minutes past two, and the House then adjourned. A Bill incorporating the amendment to the Customs tariff, and the Government's plans for granting rebates with respect to motor spirit used for launches, stationary engines, and by dry cleaners, is to be brought down. Replying to the suggestion that the proposals constituted rush legislation at the end of the session, the Minister said he had no intention of hurrying the Bill through the House, and, on the other hand, he had no intention of allowing it to be unduly delayed. The proposals had not been brought down without a great deal of thought, not only as to how extra money should be raised for road works, but also as to how the requests which had beta made throughout the country should be met. "I have not visited any part of the Dominion where it has not been pointed out to ma by the local bodies and ratepayers, individually and collectively, that the position they were getting into was more than they could bear," continued the Minister. "They said they appreciated the work the Highways Board was doing, but they also pointed out that the main highways seheme was having an effect that was altogether unanticipated when it was inaugurated. They found that motorists were coming in on the good roads, and when they found a district to their liking, they spent anything up to a couple of days in travelling around over roads that were not metfnt for that class of traffic. Moreover, the ratepayers found that most of their rates were being diverted to the main highways, and that the secondary roads were being left.

"Whether the Government or the local bodies should carry out the work of improving the roads adjacent to the large centres in order that they may meet the requests of the motorists for better Toads ia a matter of opinion," Mr Williams proceeded. "There is no doubt that there is a demand for better roads. It appeared to the Govern.' ment that it would be better to embark on a scheme that would not only bring relief to the settler in the country, but also meet the growing demand for roads adjacent to the cities." Mr V. H. Potter (Boskill): What do you call adjacent! The Minister: Twenty-five, thirty, or up to 50 miles—an easy run from the city. Mr E. J. Howard (Christchureh South): Those roa,ds are. all fixed up. "They may be in some cases, but there is a desire for extensions'&nd improvements," the Minister replied. ''About 25 per cent, of the cars in New Zealand are owned in the four main centres."

Mr Williams said that when hq was considering the question of a petrol tax he had enquiries made as to the effect on consumption of a rise in the price of motor spirit. A graph which had been prepared by his officers showed that the consumption rose as the price increased, and the motor importations showed no signs of falling away when petrol prices were higher. He would like it to be realised that the imposition of a tax of fourpence a gallon would only bring the price of motor spirit up to what it was 18 months or two years ago. Nobody would say that since the price of petrol came down some time ago, there had been any marked difference in the fares charged on service cars and by taxis. If there had been any reduction, the Minister thought it could be fairly claimed thsit it was due to better roads and means of access, and possibly to better machines, and not to any reduction in the price of benzine. "Th6re is this other point," the Minister went on, "it has been said that there will be a great outcry over the new tax, but I am quite sure that if the people woke up iu the moaning to find that dealers had increased the price of petrol by fourpence, the people, after the first shock, would take no notice of it. The increased»revenue will enable us to give the public the road service' it wants. If the higher price of petrol will mean that cars are run at a slower and more economical speed, there will be the added advantage that it will be a good thing for the country, and for the roads." The Minister added that it was intended to give consideration, in the allocation of the new revenue, to the claims of special districts. It was recognised that it was Very costly to road some districts, and, strangely enough, the districts concerned were those least able to bear the heavy expense.

PROTEST MADE. SOUTH ISLAND MOTOR UNION'S ACTION. '"The little bombshell which appeared in the newspapers this morning regarding the petrol tax made it advisable to call this meeting in order that mem)>ers may tako into consideration views expressed here or by the North Island Motor Union," Mr H. C. flarley, chairman of the South Island Motor Union, said last night in explaining why the meeting was held last night instead of to-morrow night the regular meeting night. At a later stage the question came before the meeting, when a telegram was read from Mr M. H. Wynyara, motorists' representative on tho Highways Board, stating that he would bo in Wellington attending a special meeting of the Highways Board to-morrow, anfl that he would be able to attend any conference in Wellington regarding the petrol tax. Mr W. L. Minson said that if 4d por gallon was collected and properly expended on the roads, motorists could look -upon it as an investment. Mr F. W. Johnston said he thought that they must adhere to what tuey agreed to with the North Island Union. Tho chairman said that in anticipation of the petrol tax being submitted, the matter was discussed by the North and South Island Unions, and it was decided that 2d per gallon was the most that shonld be imposed. Mr Johnston said that a member of the Highways Board attended the conference and seemed to think 2d, m conjunction with th© tyre tax and the existing flat tax would go a long way to help the Board over its difficulties.

As South Island moneys bad been hoarded up, he thought that they should stick to their guns and protest against the tax being more than 2d. He moved: "That the South Island Motor Union protest against the excessive amount of the petrol tax as levied —-Id—and urges that it should be reduced to 2d, as suggested by the conference of the North and South Island Motor Unions, held in Wellington on Jnly 19th." Mr J. S. Hawkes soconded, and the motion was agreed to in the following terms: "That the decision to impose a petrol tax having come before Parliament, tho South Island Motor Union urges the amendment of tho resolution by tho substitution of 2d per gallon for 4d per gallon, and that there be no exemptions." Mr Johnston then moved: "That in view of the increased taxation, and as motorists are tho greatest contributors to the highways fund, this Union demands an extra seat on the Highways Board for a motorists' representative to be nominated by tho South Island Union." Mr Hawkes: Is it wise to introduce that at the present, time? Mr Minson: "T think that the time is ripe and is very opportune." He seconded the motion, which was agreed to. It was further agreed that tl>e South Island Union should join with the North Island Union, and that tho decisions arrived at should be communicated to the North Island by telegram. In tho event of a conference of tho two Unions being held, Messrs Hnrley and Johnston were appointed to represent the South Island Union.

MOTORISTS AND ROADS. (PRESS ASSOCIATION TELEaHiM.) DUNEDIN, November 1. Mr J. Ansell, president of the Otago Motor Club and the South Island Motor Union, stated that the petrol tax was rather more than anticipated, but must be regarded as a satisfactory endeavour to overcome roading problems in the Dominion.

Motorists had to recognise their liability to assist local bodies to maintain the highways. He heartily endorsed the proposal to allocate a substantial portion of the tax for the improvement of roads in the vicinity of cities. No objection could be taken to exemptions so long as the Government was able to make satisfactory arrangements to enforce the regulations, but he objected to anything which would increase the cost of administration and make the levying of the tax with exemptions economically unsound. Mr Ansell also supported the retention of the tyre tax, but urged the abolition of the flat rate.

AUCKLAND PROTEST. (PRESS ASSOCIATION TELKQBAX.) AUCKLAND, November 1. At a hurriedly csalled meeting of the Council of the Auckland Automobile Association, the following resolution was passed on behalf of 5500 members: "We strongly protest against the imposition of a petrol tax of fourpence in addition to the tyre tax and registration feti. "We consider that no exemption should be allowed."

KILLING COMPETITION WITH RAILWAYS. (PRESS ASSOCIATION TELXGBiV.) WELLINGTON, November 1. "As far as we can see," said Mr Hare, of the Hutt Combined bus, ser. vice, when approached on the Subject of the petrol tax, "it is a slap against competition with the railways. I understand that the Government is holding a meeting to-day to decide whether they will buy us out or run buses in opposition. This tax is probably an attempt to make us bring our price down. "Although, personally, I prefer a tyre 4ax, a petrol tax in itself is quite all right so long as it is not excessive* No one could object to a tax of a penny or even twopence a gallon, but when it comes to fourpence, it is too heavy altogether. It is without doubt a move on the part of the Government to kill not only our services, but all those in competition with the railways."

CARRIERS' VIEWS. '?■ (PRE3B ASSOCIATION TBLIOI4M.) DTJNEDIN, November 1. Mr Malcolm Stevenson, when asked by a reporter to speak for the carriers and owners of heavy traffic vehicles in regard to tho petrol tax, said that the carriers of New Zealand had always advocated a petrol tax, and representations to that effect had been madQ__to the Government. Tho tax was to be the only tax to bo paid with the exception of annual registration fees. Putting a tax of 4d per gallon on petrol and allowing all the other levies to remain was putting a heavy burden on this class of user of petrol. The trade would have difficulty in bearing such an additional burden unless it was going to get a reasonably speedy return for its money in the form of good roads, which would result in greatly reduced maintenance expenses. People would want to know just how this money was O oing to be spent, as the present administration of tho Highways Board funds was not producing what it should in the way of improved roads. The carriers would expect, after paying the 4d tax, to bo allowed to run their heavy lorries on any roads. At present vehicles over a certain weight were barred from certain roads. If this extra levy resulted in all roads being opened they would have littlo to grumble at. Mr Stevenson concluded by saying: "It appears to me as a carrier that the Government is using this additional tax as a weapon to remove the competition with the railways of local enterprise. I have no doubt whatever on that point."