PETROL TAX.

Press, Volume LXIII, Issue 19159, 16 November 1927, Page 10

PETROL TAX.

ALLOCATION OF MONEY. SOUTH V. NORTH. [THE PMSSS Special Sftrrice,] WELLINGTON", November 15. A dozen South Island members of the House of Representatives waited on the Prime Minister this morning in reward to the allocation, as between the North and the South Islands of the revenue from the Motor Spirits Taxation Bill. Mr T. K. Sidey said the deputation had come at the instance of the motor organisations of the South Island, and tho South Island Progress Leagues. What these organisations were asking for was that the allocation of the petrol tax should be on the same footing as the tvre tax, in so far as the portion as between the North and South Islands was concerned. Cook Strait, he suggested, was an effective bar between the two Islands, and it was a mere handful of cars that crossed the Straits. The question was whether, under this proposal, the South Island would get what it was entitled to. Mr George Forbes said that this was a special tax, and the feeling was that the money collected under it should directly benefit the persons paying it. There was a feeling of insecurity and one that the money gathered in the South might be spent in the North. They wanted to be assured that they would get the same amount of the petrol taxation as was the case in regard to the tyre tax. Mr J. E. Hamilton said he had just come up from the South Island where he had found the feeling on the subject was very strong. It had been taken up by the newspapers and the motorists, | the feeling being that the North Island was "getting away with something." There was a feeling in the South that North was too strong for them—that they could outbid and outvote the South. Mr Coates to the Hon. Mr Williams: Have you any intention of robbing the South Island, Mr Williams?—l certainly have not. The only suggestion of the kind comes from the South Island. Provisions of the Act. The Prime Minister, in reply, explained the main provisions of the Act in regard to allocation. The Board, he said, had passed a resolution agreeing to the method of allocation. In regard to the 25 per cent, allocated to the secondary roads in the counties, the counties selected the roads for improvement. It was the roads that had been selected, not the amount of money, that mattered. The District Councils made their recommendations to the Highways 'Board, and the allocation, was made according to the size of the county and the difficulties it was experiencing. Roughly speaking it would work out at £llOO or £I2OO per county for the purpose of getting an equitable line on it. That would bo the first way to do it. Then they would go into the mileage in the different counties and so forth. It was not a question of taking money from the one Island. It was the consideration of the roading problem in each county in New Zealand. The motorists using the roads would have equal consideration. Mr J.,Hamilton: The South, Island motorists do not use the northern roads. Mr Coates: It is not a question of North v. South. It's a question of maintaining the existing standard and preventing an unfair burden upon the ratepayer who is overreaching himself to meet modern requirements of transport. The idea that the allocation of the money will favour the North is quite unfounded. Mr George Forbes: What about the representation of the South Island? Mr Coates: Mr Williams has indicated that he would consider whether further representation should be given on the Board. Mr Hamilton: Would you be prepared to show each year the revenue and the expenditure from each Island? Mr Coates: Oh, certainly. That's only,a question of a return. He suggested that members should give the Act a trial and see how it worked. If it was found that it was not being fairly administered the legislation could; be reviewed later. Mr Hamilton: You people in the , North are keen on borrowing money. We in the South like to live within our means. i Mr Coates: That is so, and it is very wise.

DISCUSSION IN LEGISLATIVE COUNCIL.

[THE PRESS Special Service.] WELLINGTON, November 10. South Island members of the Legislative Council further pressed the point when the Motor Spirits Taxation Bill was under discussion in the. Council to-day, that the South Island revenue from the petrol tax should be spent in the South Island. The Hon. Mr Cohen asked if it were intended to make provision for the tax collected in the South Island to be applied to the roads of the South Island. "I cannot speak positively'' said the Leadler of the Council, Sir Francis Bell, "but so far as I am concerned as a member of the Government 1 should say no." The two Islands, he said, were one in the matter of the collection of the tax, and the distribution was one, resting with the Main Highways Board. The Hon. Mr Thomson asked if it were proposed to have a Board for the South Island and another for the North. Sir Francis Bell said it was very likely that the necessities of the South Island counties were not so great as those of the North Island, and that would be recognised! by the Main Highways Board. An attempt to divide moneys on geographical lines would not ensure a division according to the necessities of the Dominion as a whole. The Hon Smith deplored the fact that the South Island had not full and proper representation on the Main Highways Board. Sir Francis Bell: It will have that. There will be no difficulty about it. The Hon. Mr Malcolm pointed out that if two Boards were set up each would be out to secure the greatest allocation possible for its own Island, and jis the population, and therefore political influence, in the South was less than in the North, the South Island would probably find itself defeated in its efforts. On the other hand, if the Dominion Board viewed the matter from the point of view of the best interests of the whole country, each road was likelv to be treated on its merits.

WELLINGTON PROTEST. (PBZSS ASSOCIATION TM.EQRAM.) WELLINGTON, November 15. When the petrol tax allocation was first announced the City Council expected to get £IO,OOO, which was immediately earmarked to pay interest on paving loans. It was then dismayed to find that the city was to be asiced to give /up its special Hutt road tax. and take over that part of the road within the city area, which, instead of an. increase of. ia |evenue,

would mean an actual loss of more than £ 1000 per annum. Strong hostility was expressed to this remarkable financing, and the Mayor, Mr G. A. Troup, now states the Government has promised it shall be altered and the city shall receive the £IO,OOO clear of drawback.

SOUTHLAND'S ATTITUDE. (PBESS ASSOCIATION TZLEOBAV.) INVEBCABGILL, November 15, The Southland League has telegraphed all members of Parliament as follows: '' This League strongly protests against the proposal not to allocate the petrol •tax between the North and South Islands on the basis of the number of motor vehicles in each Island."