PETROL-TAX INCREASE

Sun (Auckland), Volume IV, Issue 1037, 30 July 1930, Page 11

PETROL-TAX INCREASE

PRIME MINISTER’S DEFENCE “NATIONAL NECESSITY” Press Association WELLINGTON, Today. The Prime Minister, the Hon. G. W. Forbes, in an interview yesterday, stated that he recognised* that there, was strong hostility to the increase in the petrol-tax. “A national necessity has forced the policy to which motorists propose to object,” he said, “and I am hopeful that those who view the whole situation in a broad sense will ultimately realise that however they may object to the increased petroltax it is the least unpleasant method oC meeting a difficult situation. “First and foremost, the Consolidated Fund, in other words, the taxpayer, had to be relieved this year of as many burdens as possible and among the burdens lifted have been the grants mad© from the revenue for road construction and road maintenance. The statement has been made that this action, dictate’d by other reason than the relief of the taxpayer, constitutes a breach of faith. There is no desire on the part of the Government to cease these payments if it is possible to make them, but it is just as well to recognise that they can no longer be made, and that as it is entirely a matter of road costs the opinion of the Government is that road-users should as far as possible bear that burden. “However, what is proposed in tho Budget does not completely relieve the Consolidated Fund from this liability, because the revenue contributed by the general taxpayer is carrying a very big burden in respect of interest on road construction loans. Tho details of the Dominion’s Public Works expenditure to March 31 last show that considerably over £ 15,000.000 has been expended on roading and that the taxpayer Is finding the interest on that large debt. Thus a. very substantial contribution is still being made by the taxpayer for the provision of facilities for road transport. RELIEF FROM REVENUE “The Government is also expending from the general revenue a good deal ot money in relief works on roads. This again is a big burden which neither road users nor local bodies are asked to carry. Under these circumstances it is considered reasonable that the Government should ask the road user to carry a. larger proportion of the financial burden of the roads, and in i aising the petrol tax by threepence there will be some additional revenue also available for the direct benefit of secondary highways. “The Government had two alternatives. It was obliged to cease the payments to the Main Highways Account and it had to decide either to make good the deficiency by a further petrol or *° cu rtail the finances of the Main Highways Board and the local bodies. The subsidy to local bodies on rates expended for roading purposes was. so far as I know, properly spent in that direction. There is evidently considerable objection to relief being given through an extra petrol tax and if this agitation is successful it only means that the burden of curtailed finance is thrown on the Highways Board and the local authorities. Having ample proof of the necessity of relieving the Consolidated .Fund, the Government considered that this could be achieved with tho least amount of hardship by imposing tho burden cn those who get the benefit. “I would like to make a personal appeal to the motorist,” concluded Mr. Forbes. “I give my assurance that this is a time of national necessity which has forced the Government to undertake an unpleasant task. There was the big deficit to be avoided. An easy way would have been to run into the financial morass and extricate th® country by borrowing to meet a deficit In current revenue, but the Dominion’s high financial reputation would deplore the adoption of such a course, and admit, however reluetantlv, that under the circumstances the Government lias done the right thing.” BAKERS’ OPPOSITION HIGH DELIVERY COSTS Press Association PALMERSTON N. Tuesday. A protest against any increase in the petrol tax, otving to the present high cost of delivery, was made at a largelyattended meeting of the Manawatu Master Bakers’ Association. The meeting represented bakers from Paekakarlki to Halcombe. CHRISTCHURCH MEETING MOTORISTS’ PROTEST Press Association CHRISTCHURCH, Today. . The proposal of tho Government to increase the petrol-tax encountered tho strongest opposition at a meeting held last evening of representatives of motoring communities and public bodies. About 250 attejided. The Mayor presided and motions of protest were carried unanimously. In addition the meeting also protested against the Budget proposals to withhold from the highways revenue fund the annual grant of £200,000, as provided for in the Highways Act, 1922, and against the proposed discontinuance of the, annual grant of £35,000 from the Consolidated Fund. WAIRARAPA PROTEST Press Association MASTERTON, Tuesday. A large and representative meeting of Wairarapa motorists held in Masterton today carried the following resolution: “That this meeting of motorists, representative of the whole of the Wairarapa, emphatically protests against the increased taxation of petrol and the raising of customs duties which, in view of the funds already made available by motor taxation, it considers unwarranted and unjust, and that all present at this meeting pledge themselves to oppose such increases.”