HIGHWAY FUNDS.

Press, Volume LXVIII, Issue 20494, 12 March 1932, Page 15

HIGHWAY FUNDS.

PROPOSAL CONDEMNED. MOTORISTS' HOSTILITY.

Strong hostility to the proposal <■>£ the Economy Commission to the effect that the Main Highways Revenue Fund and Construction Fund be abolished and >f that all motor taxation should be paid id direct to the Consolidated Fund was ie expressed yesterday at a half-yearly a- meeting of delegates to the South Island t, Motor Union, at which the North Island Associations were represented. It was ; h stated that of the petrol tax of 8.4 d per gallon now imposed on motorists, 11 no less than 5.4 d was proposed to be used to relieve the Budgetary position. ,ii The following statement was submitted to the meeting: 1_ The proposal involves a complete reJ versal of the principles under which a motor taxation was imposed in New Zei- >£ land, and is contrary to principles apIt' proved by National Roading Authorities the world over. Roading Needs of Dominion. The Main Highways system developed since the initiation of the schemo has been found eminently suited to th« needs of the country, and has proved satisfactory to local bodies concerned, (j and to motor-users throughout the l)oL _ minion, and the Main Highways Board 0 is a body in which both have confidence. , In a statement made by the Govern-. ' rm , ment of the day, and published in the ■j Press, explaining the purpose of Th« Main Highways Bill, 1921, the following e paragraph appears: e " The second essential requirement is that as far as possible the expenditure of moneys provided out of Dominion finance for the maintenance and construction of main arterial highways should be removed from political or parocHial influence at every kind. It is only in dealing with main highways under a comprehensive policy free from all local influence, that material progress and improvement can be achieved within a reasonable time. The determination of the particular part of a highway to be constructed, reconstructed, or. maintained, and of the particular parts of a highway re'quiring special 1 and exceptional expenditure or main* tenance. should be left to an independent Expert Board without" interference from Government or Parliament, except, so far as is necessary to preserve the Government control of th« expenditure of Government money. "• . The recommendation of . the Economy Committee means political control of the road fund, which is diametrically op- • posed to the foregoing statement, and to the policy frequently expressed by the Automobile Associations. , Motorists' Sacrifices. Motorists are fully sensible to the necessity to make, in eommpn with all sections of the community, sacrifices towards meeting the economic condition* which have arisen in this country. In addition to the amount whicl* they have found as ordinary taxpayers tlife extent of the additional sacrifices which they have already made is indicated by the following statement:— Prior to 1929 the Government made , free grants totalling £235,000 annually. The petrol tax was then 4d per gallon. To-day it is the highest in the world—--8.4d per gallon, but whereas in 1929 the whole 4d per gallon, plus the Government was available for loading. No W; with more than double the tax, the Highways Board is left with only 3d per gallon, the balance of 5.4 d per gallon 'being used to relieve the Budgetary position and Iocs! bodies. In a complete year this 5.4 d i per gallon would amount to £3,500,000, . and to this extent we contend the motorist is dually taxed. Maintenance Subsidy. In order to assist local bodies x the Highways Board during the" past ttfo years "increased its maintenance subsidy to £3 for £l, and granted additional highways. This, with the amount taken from the Highways Fund for the relief of rates,- for subsidies on- fertilisers, and to hospitals, resulted in flocal bodies receiving from' motor taxation nearly £600,000 more last than in any previous year. '" The Economy Commission's -report is fraught with the grayest .danger to roading authorities in its suggestion -of lowering the standard of maintenance, inasmuch as this will involve considerable reconstruction expenditure in time to come, and the proposals of the Commission in this connexion are entirely ' inadequate. ' .'i ; - ; • Earthquake Expenditure. During the past two years the whole of the expenditure on earthquake damage on highways amounting to over £400,000 , •was -placed on tjie shoulders, of the motor taxpayer. Construction funds are required in respect of many bridges and Rome absolutely essential roadwork. If the principles of restoring extraordinary damage due to earthquake, floods, etc., out of motorists' funds, is continued a further rise, will be necesrary , to make the finances of the Board secure. The necessity for making any provision of this nature seems to have \ been overlooked by the Economy Com- . mission, but nevertheless, it must be made in the interests of road-users and local authorities. Before the. Government considers the report of the Economy Commission, Si so far- as Main Highways finance is concerned, it should give the motorusers an opportunity of stating their views. » A most extraordinary situation arises out of the report. Last year a Select Committee of members of the House of Representatives, set up to report on Main Highways finance, affirmed the principle of earmarking motor taxation'for roading— r and now a committee outside the House makes an entirely opposite-recommendation^ The "chairman (Mr F. W. Johnston) said that if the report did not contain a» request actually to abolish the Main Highways Board, it proposed to emasculate it, either of which, if carried out, would amount to a national calamity. It was only a few months ago that the railways were taken out of political control yet this committee put itself in conflict With the opinions of the best brains of the world, which, in itself, was sufficient condemnation of its proposal. Out of a total taxation of £2,500,000 from motorists it was pro- . posed to devote no less a 1 sum than £1,500,000 towards amelioration of the Budgetary position. It seemed to be the view of the Commission that if there was one section of the community which could be plundered it should be so treated. It was' time for the South and North Island Motor Unions to gird up their loans, and become political in an endeavour.to defeat the proposals before they "came before the House. He moved that the statement be adopted. In seconding the motion, Mr W. E. Carey endorsed the president's remarks, and suggested that night letters setting out the views of the Union be sent to all M.P. 's. This was agreed to.