HIGHWAYS REVENUE

Sun (Auckland), Volume IV, Issue 1052, 16 August 1930, Page 11

HIGHWAYS REVENUE

NO REDUCTION IN SHARES OF LOCAL BODIES

MINISTER’S ASSURANCE Press Association WELLINGTON, Today. The Minister of Lands, the Hon. E. A. Ransom, stated today: “My attention has been drawn to a suggestion that the allocation of the | additional petrol duty of 2d a gallon, as provided for in the Finance Bill, will lessen the amount available for boroughs and cities of more than 6,00*) population. This suggestion is quite a fallancy and is incorrect. “Under the original legislation the.'boroughs and cities received s per cent, of the net amount of the 4d lav and 92 per cent, went to the Higbw; Revenue Fund. Now 8 per cent, of the 4d tax is equivalent to 5 1-3 per cent, of the 6d tax and it is proposed actually to give the boroughs and cities concerned 5J per cent., which •is a gain and not a loss, as suggested. The balance of 94£ per cent, will go to the Main Highways Revenue Account, and it is estimated it will yield approximately for this year a sum equal to the charges transferred to that account from the Consolidated Fund over and above the revenue from the original 4d duty. “Thus the position is that the interests of the boroughs in the original 4d tax have been preserved, but the whole of the proceeds from the additional 2d tax is required to enable the Highways Account to relieve t • Consolidated Fund of certain charges without drawing upon the revenue derived from the original tax of 4d.’’