Govt criticised for road policies

Press, 19 April 1979, Page 2

Govt criticised for road policies

Wellington reporter The Government came under strong attack for its road-funding policies from members of the National Roads Board at the board’s monthly meeting in Wellington yesterday. Representatives of the Automobile Associations, the Road Carriers’ Association, and the Municipalities’ Association all complained to the Minister of Works (Mr W. L. Young) that the Government has behaved badly. “We were assured by the Government in its election manifesto that the National Roads Board would be independent and that its income would have an automatic growth factor to counter inflation,” said the Mayor of Takapuna (Mr F, Thomas). “Neither of these goals has been achieved. “The Government needs a public-relations exercise to retain the confidence of individual members of the board and the organisations they represent on it. Yet the Minister tells us he can give no assurance that the board will even get the SI7OM we have been promised.”

Mr W. J. Knox, representing the Road Carriers’ Association, said that the Government had increased the road-user charges to his members to bring in an extra SI4M, but was siphoning off SISM to SI6M from normal income.

“This means that heavy vehicle firms are effectively contributing directly to the Consolidated Account instead of for reading, and that is not acceptable,” he said.

When Mr Young reminded Mr Knox that sales tax on heavy vehicles was being progressively reduced at the same time, Mr Knox said that firms had never been happy with the 40 per cent sales tax, “a punitive tax,” when compared with the lesser sales tax on other vehicles. “We do not believe that it is fair to tie rising road-user charges and falling sales tax to each other,” Mr Knox said. “Sales tax has always been far too high.” Mr Young refuted Mr Thomas’s complaints about lack of independence by the board. If the board was subject to direction then he, as Minister, would have directed it to construct the projected Mount Victoria road tunnel between Wellington and his own electorate of Mirimar, he said. In fact, there was never any suggestion of such direction from him or the Government. Board members were also angry about the announcement by Order-in-Council on March 26, only a few days after a board meeting, that road-user charges would be increased and some motorspirit duty moneys taken into the Consolidated Account.

“This takes away at least SISM of private "motorists’ money, but neither the Automobile Associations nor the members of this board (except the Minister) knew a thing about it,” said Mr F. R. M. Parkinson, representing the associations. “It was embarrassing for members to have to admit

publicly their ignorance of a matter so vital to the board they are supposed to run. “Also, it takes away money which legitimately belongs to the board at a time when the Government is actively seeking to reduce motor-spirit consumption, and so there is great uncertainty over revenue from this source,” Mr Parkinson said. “But I also consider this a serious manipulation of taxation. I wonder if this is just a move by the Government to take money for which it can later take credit for having contributed.”-

Mr Young said that as a member of the Cabinet he had known of the pending Order-in-Council. Cabinet security had dictated that he could not advise members in advance.

“In 1977, private motorists accepted the 1c increase in motor-spirit duty with good grace, because they were told it was needed to provide better roads,” Mr Parkinson said.

“Now they find they agreed to a 1c increase to provide the Government with another SISM in taxation. That is a matter of grave concern.”

The Director of Reading (Mr F. A. Langbein) said that the criticism by the Auto mob i 1 e Associations showed they had not caught up with the new system for funding of roads. “As for the heavy-vehicle users — they are still keen to see the private motorists fund their battle with the Railways,” he said.