THE Hauraki Plains Gazette With which is Incorporated THE OHINEMURI GAZETTE. MONDAY, WEDNESDAY, FRIDAY “ Public Service ” FRIDAY, MARCH 10, 1944. MOTOR TAXATION

Hauraki Plains Gazette, Volume 53, Issue 32405, 10 March 1944, Page 4

THE Hauraki Plains Gazette With which is Incorporated THE OHINEMURI GAZETTE. MONDAY, WEDNESDAY, FRIDAY “ Public Service ” FRIDAY, MARCH 10, 1944. MOTOR TAXATION

The diversion of motor .taxation funds to purposes other than those intended when the Main Highways Act, 1922, was passed is causing serious concern among the North and South Island Motor Unions, automobile associations and the Main Highways Board, which among them represent a large proportion of the people of New Zealand. The motor unions have prepared a comprehensive statement revealing a very serious diversion and suggesting a complete review of the policy with a view to devoting motor taxation to the original purpose, preventing a burden of debt encumbering the highways system and rescuing the main roads from the deterioration with which they are faced. The very extent of the contributions made by the motorists entitles the taxpayers to urgent consideration of their claims and a reasoned answer to the arguments put forward. Admittedly the exigencies of the war have complicated the situation, but it is still true that the diversion from the original policy began long before the war emergency arose.

The motor unions quote figures to show that the Consolidated Fund has benefited from petrol tax to the extent of £27,925,000, leaving only £17,752,000 for direct application to the roads—from a source of revenue the first purpose of which was the construction, improvement and maintenance of roads. So heavy have the transfers to the Consolidated Fund been that £13,000,000 has been borrowed for and on behalf of the Main Highways Board, with the consequent burden of interest, when the original conception was to build and maintain roads to the greatest extent possible from revenue. ' In addition, the Main Highways Act made provision for the annual transfer of not less than £200,000 from the Public Works funds to the main highways account in lieu of expenditure previously charged to the Public Works funds. This transfer was stopped in 1930 but the total transferred to that date, £1,226,000, has been made bv legislation a debt by the Highwavs Board to the Consolidated Fund. Certainly the taxation of motorists has been increased from time to time in the Government’s search for revenue for war and other purposes, but that is not an adequate answer to the claims of the motorists. The revenue originally intended for the roads has been whittled away so that those who own or operate motor vehicles—and they are a majority of general taxpayers—are being called upon to bear an extraordinarily heavy proportion of the country’s costs while the financing of the highways system is falling into a very unsatisfactory condition. Particularly is it undesirable that the roads of New Zealand should become burdened with debt, especially if the highly perishable asset is not being adequately maintained. The investigation which the motor unions seek is certainly justified. Even if wartime conditions prevent a complete reconstruction of the policy immediately, it is urgently necessary that some anomalies should be corrected and that as soon as is reasonably possible the highways policy should be overhauled. It is no longer sufficient to sav that the motorists are the wealthier section and can afford to be mulcted in discriminatory taxation.