HIGHER PETROL TAX

Sun (Auckland), Volume IV, Issue 978, 22 May 1930, Page 11

HIGHER PETROL TAX

SUGGESTED INCREASE TO lid A GALLON FARMERS UNANIMOUS THE SEX'S Special Representative WHANGAREI, Wednesday. A proposal that all rural lands be derated, and that an increased petrol tax be substituted as a method of raising funds for the maintenance of all roads. was unanimously adopted by the Farmers' Union Conference at Wha - ngarei today. The principal argument was that road costs should be placed directly on the user. Approximately 15 remits from all parts of the province canto before the conference, advocating this method of meeting costs of road maintenance and construction. In moving the adoption of the principle, the president. Mr. A. A. Ros>. stated that the executive had gone into the question very carefully, and was satisfied that the derating of rural lands by the substitution of an increased petrol tax could be done without inflicting undue hardship on any section of the community. From investigations made by the executive, using the total of the rates collected by New Zealand county councils, he was convinced that it would be done by increasing the petrol tax to lid a gallon. Such a. tax would put thecost of the roads upon those who used them. The motion was seconded by Mr. J. B. Jordan. That the present method of raising revenue for the upkeep of roads was unfair was the argument put forward by Mr. C. E. S. Gane. of Tauranga. An additional advantage of the proposed tax would be that it would throw much of the traffic at present going by road back to the railways, and would also assist land settlement. It had been suggested that the tax would increase the cost of freights !*• the backblock farmer. Even if it did. the settler would save through tho non-payment of rates. It might bo called class legislation, but the cities would benefit, as they would participate proportionately in the increase in revenue. Mr. Frank Colbeck said that country rates had increased by 700 per cent, during the past 15 years. The farmer really paid his rates three ways today—by county rates, through the petrol tax, and helping to meet tho loss on tho railways. The petrol tax was aimed at the joyrider. A tax of Is a gallon on last year's sales of benzine would have brought in the sum of £3,122,084. If the tax caused less benzine to be used, there would bo less wear and tear on the roads, and consequently less need for expenditure on their upkeep. A FARMERS’ EL DORADO The coming into operation of tho suggested petrol tax would be an El Dorado for the farmer, stated Mr. J. Barclay, of Northern Wairoa, who opposed the remit on the ground that it was class legislation. For the conference to pass the remit would be to provide a target for the rest of tho community to fire at. The advantages of a petrol tax. as suggested, would all be in favour of the farmer. Mr. R. H. Feist stated that, in tho formulation of the proposal. th-» boroughs had not been overlooked and they would get a percentage of the increase. The executive was advocating tho derating of rural lands because it believed that the primary product r was being hindered by high artificial barriers, of which the present system #£ rating was one. Mr. A. E. Robinson admitted that tho borough rates were higher than those of the rural districts today, but tho rates in the cities were applied to services for which the # farmer had to pay in part. Revenue from rates in the cities was used to meet the costs of tramways, sanitation, \4at«*r, libraries and other social services. If the application of the existing petrol tax was justified, then the suggested increase was equally justifiable. Mr. J. W. Jones, of Pakaraka, said that there were many backblocks settlers paying rates who hardly used the main highways. The roads had been improved for the use of the travelling motorist and he should bo made to pay for them. Mr. S. R. Cooke, Taumarunui. told of 23 settlers in his district who had been compelled to walk off their farms through inability to pay rates. The principle was adopted unanimously, the only opponent having left the room during the discussion.