REVIEW DEMANDED

Chronicle (Levin), 14 August 1946, Page 6

REVIEW DEMANDED

-Press Association

TAXATION ON MOTORISTS MOTOR UNIONS STATE CASE

By Telearavh-

WELLINGTON; August 13. i Bpeak'uig for more tlian 110,000 niotor , veliicle owners and members of Aufo- ■ mo bile Assoeiations throughout the Do- ■ ininion, a deputation representing the ■ Nortli and Eoutli Island Motor Union.s . waited on the Prinie Minister and • Alinister of Finance recently. The ob 1 ject of tlie deputation was to state tlie ■ Automobile Assoeiations' opinion that the time had arrived for a review of • .motor taxation and complete iuvestiga- ' tion of the linaiices of the Main Higli1 wavs Board for tlie purpose of ensur- , iug: (a)-That tlie disabilities under which ' the Board had operated during the war both in linance and equipiuent sliall be removed. (b) That a diversiou of the funds re- ' ceived by the Board from motor taxation sliall cease. •) That the board shall be rclieved from the ever increasing burden of standing cliarges on loau liabili ties tliat would not have been incurred had funds not been diverted from tlie board 10 give relief to the Consolidated Pund. (d) Tliat niotor taxation raised for special purposes, such as to assist tlie Governnient over the dcpression years and to assist the war expenses account, be discontinued. The deputation said Automoliile Assoeiations had for years been apprehensive about tlie impossible position in whii'h the Alain Highways Board would be placed in regard to linance and its consequent inability to carry on its work, if the Governmcnt policy inuugurated in 1930 and maintained since then, were not charged no'w tliat the complete lifting of jietrol restrictions apjieared iinminent. The Assoeiations were of the opinion tliat tlie time for a revieW of tlie whole question had arrived. They felt a long term plan should be immedi ately laid down covering tlie consti'uction of the highways system, a resump tion of highways developnient to moe! motoring requireinents of the futuro, and providing the Board with ample funds to carry out its programme. Tlie deputation presented a series of speeilic complaitits against the Governnient policy in respect of tlie divcrsioti of highways funds, and tlie weiglit of taxation imposed 011 the motoring conimunity. The deputation referred to Ihe tax of id a gallon 011 petrol imposed in'1931 (2d) and 1933 (2d) to assist nationai linaiices. The Assoeiations were promised that as soon as tlie depression was over, this special tax would be removed. ti. was still being collected. Eurther, it was emphasised that tlie qiecial tax of 4d a gallon 011 petrol imposed lo assist the war expenses aceount and .Id. a gallon imposed to cover ihe cost of bomb prooliug bulk petrol storago tanks, was still being collected not witlisfaading that war expenses had practically eeased and tlie cost of bomt) prooliug was covered by ihe exlra ,Jd tax long since. Tlie deputation summarised its requests as'follows.: — •>. . » That the loan indehtedness of £1,226,000 created hy Section 5 of the finance Act (No. 2) 1943, be canceiled. That there be restored to the Main Highways Board the sum of £931,760 being interest charged to the board on the loan liability created. That there be paid to the board the sum of £560,000 being in respect of thc annual credit to the revenue fund of £35,000 wliieh ceased as from April 1, 1930. That payments out of the Main Highways Fund under Section 37 of the Finance Act 1930, cease as from April 1, 1946. That payments from tlie fund for the maintenance and construction of roads giving access to outlying areas, under Section 39 on tlie Finance Act 1930, cease as from April 1, 1946. That the 4d a gallon tax on petrol imposed in 1931 (2d.) and 1933 (2d). which was to operate during the depression years only, be removed as from April 1, 1946 or, alternatively, if it is retained, that it be speciiicaily allocate.l to the Main Highways Board as additional revenue. That tlie 4d a gallon petrol tax imposed for war expenditure be removed as from April 1, 1946. That the 6d a gallon petrol tax imposed for main highway purposes, aud all other taxes such as the tyre tax, motor registrations, etc., which form part of the revenue of°the Main Highways Board; be preserved intact for ex penditure 011 State and main highways, Tlie deputation 's statonie.nt qs pre senled was signed by Mr. 11. \Y. Koydhouse, yiresident of the Nortli Jslaml Motor Union aud Mr. \V. R. I'arey. president of the Boulh Island Motor Union.