PETROL TAX.

Putaruru Press, 19 January 1928, Page 3

PETROL TAX.

BASIS OF ALLOCATION. Matamata Discussion. The Matamata County Council received a letter on Friday from the chairman of the Highways Board stating that a number of local authorities were under the impression that the petrol tax would result in increased subsidies towards the cost of - constructing and maintaining the present highway system of 6000 miles. This was not the case and the tax v/ould be allocated approximately as follows: —Eight per cent would be ,» 4~.aid direct from the consolidated fund to the cities and larger boroughs on a population basis, the main highways board having no control over this sum. The balance df 92 per cent would be paid to the Main Highways Board revenue account, and distributed as follows: Twenty-five per cent towards maintenance of present! main highway system. Twenty-five per cent on a suggested total of 3000 miles of additional main highways. Twelve and a-half per cent for a sinking fund to pay off loans under Main Highways Act in about 15 years. Four per cent to the small boroughs, i.e., those with a population under 6000. Twenty-five per cent to main highways adjacent to the larger centres - of population. It was the intention to surface treat heavy traffic roads in counties from this allocation and to subsidise in special cases up to £3 for SI. The above percentages would be variable at the discretion of the Main Highways Board.

The chairman pointed out that the word adjacent meant up to a radius of 100 miles. They also had to remember that 60 per cent of registrations were made in the larger cities. When a motorist from the city went for a run, he went 40 to 50 miles, and he expected something from his tax. Cr. Judd disputed the figures in regard to registration ; he held that only 25 per cent were registered in the four centres. The chairman: The larger centres in this case means every borough with a population over 6000. Cr. Cox: The point is that although the motorist pays, the money comes from the land, as 97 per cent of all income comes from the land. Members of Parliament should act as directors for the whole country. The tremendous mistake is that a lot of the money will go to tourist roads instead of for roads developing the county. We are getting a bit but not enough. Cr. Allen held that these views were right, but if they got more the towns would have to raise loans w hich would also react on the country, so that the effect would be the same. Cr. Judd held that all the money should have gone to the Highways Board and used as now. Cr. Cox pointed out they would get a percentage of the grant to roads adjacent to boroughs. The chairman reiterated that the word adjacent meant up to a radius of 100 miles of the centre. They must also not lose sight of the fact that they had gained also by the extra roads, which were being taken off their hands, while the Putaruru-Ta-papa road would be a main highway once Arapuni was finished. The engineer concluded the discussion by remarking that the proposals were only an estimate, and the Highways Board had power to vary the percentage mentioned if it thought fit.