MOTORISTS AND COST OF HIGHWAYS

Chronicle (Levin), 20 September 1946, Page 6

MOTORISTS AND COST OF HIGHWAYS

-Press Association

TAXES not solely for road IMPROVEMENTS

By Telegrdph -

WELLINGTON. Sept. 19. The .loan indebtedneys oi' the . Aiain High wa vs Bpard \vas £13,06 7,91 '2, nuid the ALiilister of Finance in fhe House of Repre.sentatives tonight, when replying in the second reading debate on the Finance Bill and when referring to a elause in the Bill writing oi! the liability of the Main.IIighwaya Aeeounf to the Coniiolidated Ikin'd. lle said the Bill wfote off £1,266,000 and that saved tlie Ilighways Fund £49,000 a ye.ar by -way of interest."- The' Minister said that- in additiou the (io'vefhmelit hau decided to write. off. not onlv arrears of interest amounung to £1,416,297 to Alarch 31 last but also the 1946-47 in terest which aniounted approxiuiatelx to £520,000 which fhe Highways Boaro was duo to pa v on Governnient loans. Mr. W, Sullivan (Bay of Plenty): But you have taken half their .funds. The Minister said that the writing off of this interest would be u tremen dous advantage to the Main Highway.Fund. There had not been one penuv diverted from sourees that the llousi had decided. It was niislcading and incorreet to say that petrol taxation was exelusivclv for the roads. Mr. K. J. llolyoake (Pahiatua): It was originally. Alr. W. J. Polson (Stratford): Th original proposal was that the taxation was for- the maintenance of roads. Mr. Nash said that that was not so and motorists would not argue that they should be exempt from taxation It was entirely wrong to say tliat oue pennv of the funds had been diverted. Mr, W. Sullivan: The i'ourpence foi war purposes now goes into the Cou solidated Fund. Mr. Nash said that taxation was never lovied for road purposes. Would the Op'position say that Ihe revenue t; tuu the roads should' eome fl'oni tio motorists?

Mr. S. G. llolland: You go on and . make vour own speeeh. Mr. W. Sullivan: The Minister luiowvery well that the whole question ought to bc reviewed. Alr. Nash: 1 will agree to review it next year. 4 The' -Minister said that motorists should pay t.heir l'air share oi" taxation as well as everyone elsc and tlie\ would not argue otherwise. The Uov ! ernment had a debt of £2S,000,000 outside the Main Highways Accmint for ! money spent on ro.ads and highways. • ! Taxation would not- moet half tlie cust i oi' roads and bridges. I Mr. W. S. (Toosman (Waikato): It ! would be better spent on the roads. j Mr. Nash said it would not be suflicient to make tlie roads. Special tax- : ation for a special purpose was a bad - form of taxation. The Government had I never given au/ indication that it ' j would remit any of it. Mr. W. Sullivan: You never remit j anything. i The Minister said that on the .j £28,000,000 of Government money tlie Government was spending £1.127,000 in interest. tt was true the rpads had . deterioratod but the Government had spent money on tliem t.hat. ho highways j aecouut eould meet.