PETROL TAX MONEYS

Evening Post, Volume CXVI, Issue 61, 13 March 1934, Page 5

PETROL TAX MONEYS

MOTORISTS' REQUEST

RETENTION IN HIGHWAYS FUND

(By Telegraph.—Press Association.) NELSON, Marcli 12. The South Island Motor Union, which is meeting in Nelson, has decided to approach the Government with a request that tho £500,000 per annum diverted, from petrol taxation to the Consolidated Fund be retained in the . Highways Board's funds in the interests of national economy and in the interests of the national.asset of highways. Mr.- F. W. Freeman. (Canterbury) said that this was one of the most important matters the union had to deal with today. When the Highways Act 1 was launched it was conceded that there were three parties which should bear some share of the cost of maintaining and constructing main highways: the Government; the county councils as representatives of the landowners; and the users of motor-vehicles.. That was ten years ago; now it was found that the Government had slipped out of its responsibility, and also, by the efforts of the Farmers' Union, at least in the North Island, farmers were also seek- ' ing to be relieved of their part of the responsibility. , The position today was that there were • 6691 miles of primary highways controlled by the board, plus 4187 miles of secondary highways. Of the primary system, 1500 miles were fully controlled by the board, the remainder being financed by the contributions of couuties subsidised by the Main Highways Board. In the past the Government had granted moneys, but these had been withheld since tho depression. HIGHWAYS BOARD FTJNDS. . The finance of the Main Highways Board concerned motorists. Of the' lOd per gallon taxation on motor spirit 4d was retained by the Government for national purposes; the remaining 6d yielded in the year ended March, 1933, £1,144,126, but of this sum £500,000 was retained for the Consolidated Fund. Other revenue payable to the board comprised tire tax and registration and ' licence fees, giving the board altogether in that year a gross revenue of . £1,061,595. In order to arrest the deterioration ' and provide better road surfaces, it would be necessary to ensure that . tho full 6d per gallon tax was used for. roading, and that the £500,000 per annum now retained by the Consolidated Fund be again made available to tho board. Mr. Freeman pointed out that no money was now being paid to the board, , a position which he believed to be unique in the history of national highway administration. Some effort should also be made against the present derating agitation. FIXATION OF PETROL PRICES. In committee the union considered the fixation of petrol prices, and decided that representations be made to the Government urging that effect bo given to the will of the people in re- . spect to petrol prices as was expressed in the Bill passed by Parliament last session. The union passed a motion regarding special motor taxation: "That for the present year and in future the whole funds collected for the purpose of maintenance and construction of main highways be paid into the fund of the Highways Board and be left intact and be used for the purpose fbr which.they were originally levied.". . A remit from. South. ...Canterbury, ''That the use of wireless-sets in.motor-' vehicles, in motion is not conducive to, safety, and steps be taken to prevent it," was heavily defeated, only the mover votings in its'faV.our. "* Mr. F. D. Sargeant (Canterbury) moved-.that, the basis of liability in collisions' on land be considered similarly, to the liability for cases of ,coilision^af sea. Mr. Sargeant said that the present,basis of claims was not satisfactory.. Usually both parties were partly: responsible for collisions, but the one least responsible escaped a penalty"..lf the suggestion Were adopted liability Tvould be proportional; to "the blame attachable to the parties concerned;.',' . It was decided to refer the matter to all '"associations and to the ~N"6rth Island Union with a recommendation for its endorsement. On the motion of Dr. Gibbs (Nelson), the union decided to recommend the executive to formulate a scheme for the establishment of a body for the coptrol of national and international - motoring interests in New Zealand, that body tv have equal representation by the North and South Islands. The executive was asked to report on the scheme at the next quarterly meeting.