THE NEW TAX

Hokitika Guardian, 3 November 1927, Page 4

THE NEW TAX

■— EXPLANATION BY MR COATES. WELLINGTON. Nov. 1. “ While it may he said that this tax on petrol is a good, swingeing charge, ! it only means that something is being | clone to meet a position to which we cannot close our eyes,” stated the I* Prime Minister in the House last night , during the debate on the Government’s new taxation proposals. . Mr Coates pointed out that the Government- felt that though some might say that this meant increased taxation the* real meaning was a more equitable , contribution by the user ol the roads to the roads which he used. (Hear, hear.) The user would have to hear licit all, hut a fairer proportion, of the . construction and maintenance charges. , The Government had considered removing the present taxation oi 92 per j year and Cl registration, hut it that I were done the petrol tax would have , to he increased. . Local taxation, largely due to wear , and tear on the roads, was pressing ~ very heavily on the farmer, and this , tax on petrol, if it did not give a I measure of relief, would at least stead v , the rapid increase in rates, which sooner or later would have become unbearable. | EI'T'ECT OX (TTY MOTORIST. M.r Coates said that in a Bill to be introduced later by the Minister ol I Public* Works a scheme oi allocations would he set out. showing in detail I where and how the money would be II spent. It would show how motorists-

country dwellers and the man in the city—would he affected. j Mr A. Lee (Auckland East): Th *j man in the city is going to have a lean ( time. i Mr Coates: Is he? As one moves , about the country one hears constant , complaint, particularly from the small ( stnrc'keepcis. that owing to the means j of transportation becoming so ease j business is carried on hv parcel post. , hv service car, and other means ol . transportation, and it is becoming a | day to day business, even though , people may live 100 to 150 miles away ( from the city.” Boroughs of over six thousand inliahi- , Umts would receive money out of the I ! per cent allocation. In the ease ol cities like Wellington roughly CTO.OOO . to C 12,000 would he available lor expenditure within the city limits. Then in addition the city motorist would benefit by the money expended on schemes such as the Mutt Hoad extension and the North and South Auckland roads. It was for such roads that the C:r,ll,(K)(i would he provided. It would l-o hopeless to expect boroughs on the fringes of a city to provide and maintain roads for the use ol the city motorist. The amount named would he spent mi selected roads. The selection wind ! he made after the outside bodies had * onferred with the city authorities and the District Highways Conned as n the type and general class ol road to he constructed. INCHEASING COSTS. As the number of cars imported had increased so had the cost per mile* ol road maintenance increased. Mr Coates continued. In 1 Ol? T, lor instance, maintenance* was L'ol per mile; in Id-’ > ii was 97.1, Init for the year ended in .March, 192", it had jumped to Dili. Those figures were based on the cost par mile of maintenance so lar as the COOO miles of main highways were conicriicd. However, motorists had paid i nly .1- per cent of the total increase in the cost as between 192(1 and 1927. That could only mean that someone was paying more than his share. A demand for better roads had been created by the increased use of the , motor-ear and Terries and the greater volume of motor transportation. A WOE 1) OK WARNING. *• And let me say that we must

watch very carefully where wo are going.” declared tlio Prime Minister, with much emphasis. " Unless Parliamont and tlie (lovenuneut will take 1 this mutter up ami deal with it 1 venture to predict that within a very few years we shall find ourselves in the position of some other countries. The farmer in this country will he faced with such heavy ratine costs that he will have to leave it. We have already provided more miles of maintained roads per car than California and the whole ol the l nited States of America, with the exception of two States, yet the motorist is contributing only .50 per cent and the rest is being passed on to the ratepayer. How lone can lie stand it!- 1 It must he obvious that it is for this Parliament to consider this question, and say whether the burden is going to ho placed on the shoulders which should hear it. instead of piling it on to farm lands. Alter all that is the hip; point.” COUNT IKS BENEFIT. Explaining the system under which C 1 £O.OOO to 0200.000 por annum is to he made available for the main subsidiary roads, .Air Coates said that some ‘IOO,OOO miles would benefit. These roads were situated in counties throughout New Zealand, roads on which such money would he spent as would he recommended by the District Highways Councils already in existence and he approved by the Alain Highways Board. The expenditure on main highways at present was approximately Cot )0,000 annually. Whereas local bodies were paying perhaps CoO a mile for the maintenance of subsidiary main reads they would under the proposed scheme have to pay. roughly speaking, only CL’O. A contribution of perhaps HOs for Cl would he made from the fund of IT’OO.OOO. Then Cl SO.OOO to CCOO.fIOO would ho available for those roads which were like feeders running J out into the baekblocks. Mr Coates said that the Government, had fully considered the question of a direct contribution by motorists, hut came to the conclusion that this wasj the hotter way. An increased mileage I of goods roads would be given for tile money contributed and the economic effect was obvious. 1