PETROL-TAX OF 6d

Sun (Auckland), Volume IV, Issue 1051, 15 August 1930, Page 11

PETROL-TAX OF 6d

GOVERNMENT MAKES PENNY REDUCTION CONCESSION TO OPINION Press Association PARLIAMENT BLDGS., Thurs. When the House of Representatives resumed this afternoon, the Prime Minister, the Hon. G. W. Forbes, said that since the House rose he had been going into the matter of rhe petroltax. Realising that there* was strong -feeling as to the amount that was being added, he was quite prepared to meet the House by making the extra duty 2d instead of 3d. “In doing this,” said Mr. Forbes. “I want to say that that is the fulles* extent to which the Government will go in the matter.” It had been stated by the Opposition members that the petrol-tax was a policy matter on which they should stand or fall, and he ! thought there was a good deal in what had been said. It was a matter in which the Government was deeply concerned. He did not wish the Government or himself to remain under any charge of breach of faith. When the amendment before the House for reducing the tax to 5d had been disposed of, he intended to move a reduction in the tax from 7d to Gd. Mr. W. D. Lysnar (Reform —Gis borne): What about the backblock roads ? Mr. Forbes said that he would endeavour to make extra provision for backbloek roads through the Public Works Fund. Later, replying to speeches made in the debate on Mr. It. A. Wright’s amendment, the Prime Minister said i he preferred the money for reading in the blackblocks should be paid out of ordinary revenue instead of from-the Public Works Funds, which were borrowed money. In regard to the proposed reduction in the petrol-tax, he said the companies were at present absorbing Id of the increase. There was no guarantee that they would continue to carry this share if the reduction were adopted by the House, but be thought they would be wise if they did. There had, he continued, been numerous references during the debate to the price of petrol to consumers compared with the cost of landing it here, | and he felt the country should have ; the fullest information on the subject. | He would undertake to have an invesj tigation made during the recess. I In reply to other points raised, Mr. I Forbes said he might have to make some adjustments in the matter of other taxes to compensate for the | petrol-tax reduction.