PRICES OF PETROL

Rotorua Morning Post, Volume 2, Issue 234, 24 May 1932, Page 8

PRICES OF PETROL

farmers' . views REDUCTION URGED BY MR. W. J. POLSON M.P. f DIVERSION OF TAX. Speaking on the subjeet of the pet'rol tax and the reduction of the amount left to the Main Highways Board for maintenance of main highways, Mr. W. J. Polson, M.P., president, at last week's meeting of the Dominion executive of the New Zealand Farmers' Union, said that derating of farm lands hard gone baclc to the position it was in a year ago. He again urged the need of reducing the price of petrol, and put forward a proposal by which the price of petrol could be reduced to consumers by 4d a gallon and yet pay another 4d a gallon tax to the Government. • The discussion arose on a remit submitted by Mr. H. R. Marsh, North Taranaki, "that all funds collected by way of benzine tax should be utilised for the purpose of roading and reduction of rates and not for any other purposes." The mover said it was obvious that the tax was not being applied to the purposes for which it was raised. Mr. R. H. Feisst (Auckland) seconded. Strong Repreaentations. The president drew attention to the fact that strong representations had been made to the Miniser on the matter. It cost £700,000 a year to maintain existing highways, and that had been cut down to £650,000. Anything less than that would mean deterioration of the highways, which had been built up at great expense by motor taxation in New Zealand. Those roads should be maintained so that the money spent on them should not be lost. Mr. Polson said that he informed the couhties he represented what the Treasury proposed to do, and some of them backed him up. One, however, did not take any action, acquiescing in what the Government had done, saying the country was up against grave difficulties that sacrifices were necessary, and that it was prepared to submit to any saerifiees the Government considered necessary to see the country through. The others said it would be false economy to allow the roads to go, and the fund should not be reduced below the amount necessary for maintenance. The Minister agreed to an amendment safeguarding a sufficient sum to maintain the highways, estimated at £650,000. Derating Setback. It was unfortunate that all their efforts toward derating with all the principles involved, should have disappeared for a considerable time because of the depression, said Mr. Polson. Circumstances were such that the Government had to have every penny available. With a sum of £500,000, leaving £650,000 to the main highways, that might be regarded as a contribution from the petrol and highway taxation toward the money the Government required to carry on. As soon as things were better he hoped they would be able to push forward with derating again. There was a strong feeling in the House in favour of it. A report presented to the House expressed the opinion that the subjeet was being tackled from the wrong end. Mr. Polson suggested that it was possible to raise an increased sum by petrol taxation, and yet cheapen the price of petrol to the consumer in New Zealand. "We are in the hands of a most iniquitous monopoly which is bleeding this country white at the present time, charging extortionate rates for petrol, higher rates than were paid by any other country in the world. We are not so far from the places where petrol is produced as Great Britain. Britain pays the same petrol tax of 8d 'a gallon, and the consumers pay ls 3d and ls 4d a gallon, whereas we pay 2s and over in New Zealand,," continued the chairman. "The same tankers bring the petrol 1200 to 1500 miles shorter than the journey to Great Britain, with the same charges for leakages, tax and insurance, yet the cost of petrol is 8d to ls 4d a gallon more than1 in the Old Country. "Reasonable Profit." "The Government could quite easily prevent exploitation in regard to the selling of petrol, so that oil could be sold at a reasonable profit as in other parts of the world," he concluded. If that were done, the petrol tax could be increased by another 4d and yet reduce the price by 4d a gallon. That would provide enough money for the roads and at the same time the use of petrol would increase. The question would be gone on with in the next session, of Parliament. Mr. W. Morrison, Wanganui, thought motorists had accepted the P9sition as a contribution to the relief of the rates, and in that respect some step had been taken toward derating. The present position should not stand, however, when things became normal again. It was agreed to reaffirm the principle in the remit and to eircularise members of Parliament as proposed.