TOTAL DERATING

Rotorua Morning Post, Volume 2, Issue 598, 1 August 1933, Page 2

TOTAL DERATING

NOT APPROVED BY CONFEREN OF N.Z. COUNTIES ASSN. ROAD MAINTENANCE. "That the principle of general derating he not 'approved of, but that the exeeutive approach the 'Government and endeavour to get the 4d p.etrol tax made available as early as possible to the Main Highways Boar4, with a view to that body granting an increased subsidy to counties for ex,penditure on roads other than main highways," was the decision reached at the conference of the Neyr Zealanji Counties' Associatiori at Wellington, after the question of the derating of rural lands had been discussed at some length. „ : In "recommending, as chairman of the committee appointed to report on the remits relating to rural derating, that the principle of total derating should not be iapproved, but that ari effort should be made to secure (for

highways maintenance) the 4d per gallon tax qn petrpl now paid irito the COnsolidated Fund, when the finances of the county were in a more stable position, Mr. W. Morrison (Waitotara) said that the rural road bill at present was £3,200,000, exclud- ; ing interest and sinking fund charges amounting to over £i, 000, 000 per annum in respect of Cxpenditure' from th'e Public Works Fund on rural roads. If total rural derating were adopted, £2,700,000 would have to be produced from the petrol tax. This would mean that the tax would have to be increas^ ed to ls 9d or 2s per gallon. The president, Mr. A. E. Jull, M.P., (Waipawa) said that a policy of "passive resistance" against the payment of the rates would siiriply i'eact against the defaulting ratepayers and their counties, because the Main Highways subsidies were paid according to the amounts local bodies were prepared to spehd ori roads. An amendment by Mr. L. Webb (Whangarei) to the effect that the Government should release sufficient "of the petrol tax to enable the Main Highways Board to pay a rebate on rates was defeated, and an amendment to the recommendation on lines given above, by Mr. A. J. H. Gavin ("Awatere), Was carried.