Motor Taxation and Highways

Press, Volume LXXIV, Issue 22513, 22 September 1938, Page 10

Motor Taxation and Highways

. . V The need for a complete reconsideration of motor taxation in its relation to highway development becomes more pressing with the passage of time. The facts, as revealed in the latest- report of the Main Highways Board for the year 1936-37, are that the board’s expenditure record level of £4,113,046, as compared, with £3,114,196 for the previous .year, while income from revenue sources ex-

panded only £ 2,385,889 to £ 2,607,027. Annual loan charges against the main highways account rose from £307,516 to £338,494. This reveals a dangerous trend that ought to be thoroughly investigated. The Dominion’s road bill during last year reached the peak figure of £ 9,008,700. There is some evidence to show that expenditure at or about this level should be sufficient to meet the reading needs of the country for the next few years. The total traffic for the year shows an increase of 28 per cent, over 1933-34. In the same period, motor taxation has risen rapidly from £3,119,834 to £5,887,206. some 89 per cent., providing a sum equal to 65 instead of 44 per cent, of all expenditure. These are trends the full implications of which are too often forgotten. It is unfortunate that motorists still appeal specifically for the expenditure of the whole of the receipts from motor taxation on highways, and for the reduction of the petrol tax from lOJd to 6d a gallon. The one is as useless and indefensible economically as ■ the other is impossible in view of the increasingly heavy commitments entered into by the present Government, It would be wiser to grasp the essentials of the situation and to remove the anomalies in the present system. No effort has ever been made to relate motor taxation to the annual costs of highway improvement and maintenance. The determination of the extent to which it has been adequate to meet the true costs of development cannot at present be undertaken because the distribution of expenditure between the elements of highway structure which are subject t rapid depreciation, such as surface, and those which are relatively permanent, such as drainage, are not known. Essential steps in the direction of relating expenditure to traffic use have been taken in the holding of traffic censuses. But it is curious and depressing to note that the full import of this work has not yet been appreciated by motorists’ organisations. Insistence on the expenditure of motor taxation for road purposes only is tantamount to denying that highways give a community service, besides implying that such expenditure should be governed by the funds raised from special taxation. In fact, three sorts of road exist: State and main highways, county roads, and urban streets, expenditure on which for maintenance and construction a mile was £ 165, £ 239, and £57 respectively during 193637. The allocation of motor taxation to these classes was: £1,958,919 to main highways, £346,457 to urban roads, and £298,586 to the rest. The purpose of State highways is to make possible inter-city transportation; the fact that owners of adjoining properties derive benefits is a secondary consideration. The cost of building and maintenance is therefore properly chargeable to the general user. On the other hand, township roads and city streets are maintained primarily for the benefit of the local landojwner and local community. While these roads serve some general use, this is incidental to their main purpose. County roads are intermediate in character, but in general resemble the former rather than the latter in that their main objective is to afford intercommunity transport. Of the total road bill 71 per cent, was provided from sources other than motor taxation and 49 per cent, from local rates and general taxation. Similar arrangements exist throughout the world. Finally, it is important to remember that a properly constructed system of taxation would be of as great benefit to the commercial user as to the private motorist. The existing arrangements for heavy traffic fees, about the highest in the world, and still based on the original classification of 1925, could well stand investigation. Passenger vehicles are charged practically double the amount payable on motor-trucks, whil,e they pay about three times as much petrol tax a mile as private cars. Highway improvement has contributed greatly to the increased effectiveness of motor vehicle operation—But a balance between expenditure and taxation should be aimed at. At present a very indefinite relationship exists between the two. A general overhaul of the present system would certainly reveal many anomalies, and would probably point to the need of lightening the'burden on the motor transport industry.