HIGHWAY FINANCE

Rotorua Morning Post, Volume 1, Issue 63, 5 November 1931, Page 3

HIGHWAY FINANCE

("Post" Speeial Commissionei')

COMMITTEE'S REPORT PETROL PRICE UNJUSTIFIABLY HIGH AND SHOULD BE CONTROLLED DERATING OF FARM LANDS

WELLINGTON, Wednesday. A long discussion on the price of petrol in the Dominion followed the cabling of the report of the Highways Finance Committee in the House of Representatives to-day. Members of all parties contended that the oil companies were making excessive profits and that the Government should take action. The committee's report, which was presented hy Mr. C. H. Clinkard (United, Rotorua), chairman of the committee, reeommended that the separate fund now called the Highways Fund, should be maintained, but that it should in future be designated the Roads and Bridges Fund, andt that -all the proceeds from motor and petrol taxation should be paid into this fund, and also that the whole of the funds be earmai-ked for roading purposes. This would call for an amendment of the existing legislation. In addition, this fund should be called upon to contribute substantially to the construction and maintenance of roads other than highways. "The committee recommends that a system of automatic allocation should be instituted," the report said, "and that sums in the fund mentioned he automatically allocated to road districts, similarly to the principles adopted in the allocation of public works expenditure of a developmental nature, but utilising faetors more suitable to the particular requirements of ordinary main roads and byways. Protect Petrol Consumers "In the opinion of the committee, based on evidence that has' been heard, there is a definite indieation that petrol is a present-day necessity, and that the consumers in New Zealand are being charged too highly for the commodity by those who have control of the supply and distribution. As the committee cannot recommend the Government to undertake the conduct of this essential industry, it recommends that the following proteetive measures he adopted by legislative enactment: "(a) That the maximum selling price to importers in bulk at terminal points should be fixed at 2d pergallon plus import duty above the world party price. "(b) That the maximum selling price ex-bulk tanks in New Zealand shall be the maximum buying price, plus 2d per gallon. "(c) That any financial person requiring lots of 200 gallons or more should have the right to buy at these prices." "As an alteraative the committee suggests that a foreign corporation tax of at least 3d per gallon should be levied on foreign corporations operating in New Zealand. "The evidence which the committee received shows that the initial invoices and charges for freight, etc. have been manipulated, with the result. that the revenue has not received the income tax it would otherwise have received. In the opinion of the committee the suggested foreign corporations tax may produce the desired results. "The committee is in favour of relief being given in the direction of the derating of farm lands for roading purposes. Assistance for Boroughs "With reference to boroughs of under 6000 inhabitants, in particular those who had completed most of their paving without assistance from tlie Main Highways Board, it is suggested that legislation be introduced to allow these boroughs the option of

applying to he grouped with the cities and boroughs of over 6000 inhabitants for the purpose of receiving contributions from the eight per cent petrol tax allocation for direct distribution among cities and boroughs of over 6000 inhabitants, the Main Highways Board to have full jurisdiction in considering and granting such applications. With the exception of Newmarket (Auckland) all boroughs of under 6000 inhabitants have their arterial routes declared main highways and they receive a subsidy from the board toward the cost of construction and maintenance. Where an application by any borough under this proposal is approved by the board, the board should have power to revoke the declaration of the main highways under which such horoughs receive contributions for construction and maintenance. "In arriving at these conclusions on the major phases of the subject the committee has carefully considered the evidence, inter alia, of the following important bodies: The New Zealand Farmers Union ; New Zealand Counties Association; the North Island and South Island Motor Unions; the Main Highways Board, the Municipal Association of New Zealand.; the New Zealand Society of Civil Engineers and the British International Oil Company, Limited. "Having given careful consideration to this important subject, the committee earnestly recommends that the Government give effeet to the decisions arrived at." t