RISE POSSIBLE

Gisborne Herald, Volume LXVI, Issue 20007, 4 August 1939, Page 7

RISE POSSIBLE

CHARGES FOR TRANSPORT INCREASED PETROL TAX HIGHER OPERATION COSTS UP BY 20 PER CENT (Par Press Association.) AUCKLAND, this day. "The increased taxation on petrol amounts to approximately a 20 per cent increase in the costs of users of commercial vehicles," said Mr. H. J. Knight, Secretary of the New Zealand Road Transport Alliance, when commenting upon the Government’s action in increasing the petrol tax by 4d a gallon.” It will be the subject of a conference by the New Zealand Carriers’ Federation, the New Zealand Road Transport Alliance and the New Zealand Passenger Services’ Federation at a meeting in Wellington on August 15. “It seems clear,” said Mr. Knight, “that this increased cost must be passed on. Throughout New Zealand in country areas price schedules, based on the previous cost of petrol along with other charges, have been recently fixed, Or are in train, while in the' cities agreed-on schedules have also been determined. None of these rates on schedules have taken any increase in costs into account, nor has any margin for such been allowed. “It is a long time since commercial motor transport in any of its branches has increased charges and the continual absorption of increased costs has undoubtedly reached its limit. Commercial motor transport offers a service to the public based on the costs of operation and the charge schedule must rise in sympathy with an increase in the costs of operation. “I am unable to say to what extent the charges are likely to be affected, but in the interim before the meeting to toe held in Wellington, the industry will be able to determine 1 to what extent, if any, the charges will need to be raised to meet the increased cost of petrol."