PROPOSED VEHICLE TAX.

Taranaki Daily News, 23 June 1919, Page 6

PROPOSED VEHICLE TAX.

COUNTY BY-LAW EXPLAINED. There was a large attendance at the Soldiers' Club on Saturday afternoon, when Mr. J. 8. Conuett, chairman of the Taranaki County Council, gave an address, in which he explained the provisions of the by-law proposed to be passed for the purpose of taxing vehicles, and also the method by which the county proposed to collect the tax. Mr. H. B. Lepper was voted to the chair.

Mr. C'onnett said that, almost immediately following the newspaper report of the council's proposal to adopt vehicle licensing by-laws, a circular was sent out by the New Plymouth Borough Council to each local body in the area likely to be affected drawing attention to the proposed by-laws, and suggesting that combined action should be taken to oppose their being put into operation. The press also saw fit to adversely criticise the council's actions, with the result that the council was likely to receive a considerable amount of attention by way of deputations at its next meeting; ana he believed representations had also been made to the Government on the matter to prevent the by-laws being sanctioned. To correct what was a wrong impression as to the effect of these by-laws, it was deemed advisable to call a public meeting of county ratepayers and others interested. so that the matter nugkt be thoroughly explained and reasons given for the steps taken. Continuing, Mr. Connett said- tfcat for the last twelve months the Tamnaki County Council, and no doubt many others, had realised that the revenue collected was not sufficient to maintain roads in the condition desired. Tins was brought about by increased traffic (much of it through traffic), dearer material, and higher wages to employees. Consequently, the council had been reluctantly obliged to increase the general rate in each riding for ihe coming year. This would amount to as much as 2%d in the £ on the capital value in some ridings, which, it would be admitted, was a pretty stiff rate. In addition to that, Ihe council had brought down proposals for raising a loan for tar-sealiag the main roads, which would be submitted to ratepayers fcr their consideration almost immediately. The Minister's consent had been asked for, and the loan agreed to. To meet this liability, an additional rate would have to be struck of, roughly, id in the £ for the total amount, to provide interest and sinking fund to liquidate the loan, and, if all was put on the land, it would mean altogether quite a rent on some holdings. It should also be clearly understood that any special rates would be in- addition to this. Mr. Connett gave some examples of what the general rate amounted to per acre, and when the tar rate and specials were added it would he realised that the land would be carrying a heavy load.

To the observant ratepayer, the speaker said, it was apparent that motor traffic had come to stay, that it had increased beyond all expectations, and that its possibilities were an unknown quantity at the present time. The strain put upon roads and the standard of road required for self-propelled'vehicles was getting beyond the revenues of local authorities without placing injustice on the already heavily taxed ratepayers. An analysis of the traffic revealed the fact that horse-drawn vehicles liable for license fees had gone out and been replaced by motors, and the council's revenue was suffering thereby- Prior to the advent of the motor-lorry the council collected £637 per annum for vehicle licenses, which now was reduced to £125. Seeing that the motor waq benefiting by the good roads maintained and would benefit much more by the improved roading scheme when carried out, tlje council felt that it was only reasonable that these vehicles should be taxed to provide > a portion of the cost, and, as the Taranaki County was one that had the necessary statutory authority for the purpose, these by-laws were framed with that object in view. Horse-drawn vehicles were included, but it was not intended to make the tax operative on them, except in extreme cases. The council had been accused of acting hastily in the matter, but Mr. Connett assured his hearers that this was not the case, for it had been under consideration since September last. The council were unanimous on the matter, and four of them owned cars and would ha!ve to pay the tax when it became operative. He thought, therefore, that, although everyone might not see eye to eye with them, they would give credit to the council for meaning well and acting in. the best interests of the ratepayers of the county.

The idea of motor taxation was not new, for a Bill had been brought before Parliament in 1914, but was considered unsatisfactory and thrown out, and nothing had been done since. It was generally agreed, cotinued the speaker, that motors should be taxed, and that the fairest method would be by a tyre tax over the whole Dominion. This could be easily collected, and if a fair scheme of distribution to lpcal bodies could be devised would undoubtedly, prove satisfactory. Up to the present nothing satisfactory had been submitfed, and in the meantime motors were increasing rapidly, notwithstanding the difficulties of import and increased first cost and cost of upkeep. Much traffic that used to be carried by rail now went by motor. The commercial man had long recognised that he could make better use of his time by motor than by train. The private individual, too, who could afford to do it invested in a car for the same reason. Motor lorries had quite taken the place of fast-moving horso teams for transport purposes, and were rajiidly displacing the s)ower dray teams for metal work, and, although perhaps not doing so much damage to roads as horses, good roads were necessary for good results, and the better the, roads the more revenue they could earn. Therefore, the time had more than arrived when the basis of taxation for road maintenance should be re-adjusted and put on a niore satisfactory footing. Parliament apparently was satisfied to leave the matter in abeyaneje, and consequently fthose counties that had the authority felt that they were within their rights in making a move independently, with a view to getting some temporary relief whilst waiting for a more satisfactory general scheme to be evolved. The action, therefore, of the Taranaki council might be the means of bringing that about at an earlier date than otherwise would be the case, and- if that were so then some good would have been done. Unfortunately it was not in the council's power to deal with the matter by way of a tyre-tax, which was agreed to be the fairest means, because tyres could only be taxed at the port of entry, which would be done unaer a Dominion scheme. Toll gates had been suggested as a means of meetin? the position, and efforts had been made previously by the council to have these established, but without resultsPwMi» cjlflion vaa Urgely opposed t»

them, New Plymouth particularly taking exception to being, so to speak, fenced in. There was, however, a reasonable amount of fairness in them, as those who used the roads most paid most, but .if adopted by all counties they would undoubtedly prove irksome to through traffic. The council believed that the proposed by-laws would be acceptable to the majority of ratepayers, as giving them some relief from the increases proposed, because if there was no revenue from cars then there must be an increased rate if the roads were to be tarsealed. And, though not being absolutely fair, Mr. Connett said he believed motorists would take the proposal kindly, because, being introduced in conjunction with the tarring scheme, they would realise tliat improved roadd would reduce wear and tear on their cars, give increased mileage for tyres and benzine, and a greater degree of comfort to passengers. Mr. Connett said he had spoken personally to many motorists of the county, and each one invariably expressed himself as quite willing to pay £5 per annum if the money was to be used in an improved roading scheme. It had been claimed by some that the by- j laws would be more acceptable if made j to apply only to motorists within the j county. No doubt that would be so to outsiders; but it would not be quite fair to tax the county motorists and let everyone eke go free. Under the authority the council had power to tax. motors from any part of the Dominion, bat they felt it would be recognised as more reasonable if made to apply only to the provincial district of Taranaki. Outside motorists would, no doubt, expect that the first time they came cm to the county roads an inspector would be waiting to relieve them of a, "fiver." Such, however, would be unreasonable. Those who had had to do with by-laws knew that many of those at present in operation would be irksome and irritating if carried out to the letter, a reasonable interpretation being made. Many private motorists in the county who used their care but little would naturally consider it hard to be be charged an amount equal to the man who is always on the road; that, however, was unavoidable. It was difficult to make taxation apply with absolute fairness to all concerned. There wag this view to be taken, however, that taxation takes from those who have, and motorists generally must have money to buy a car before they get it. Few cars were sold on time payment, and, further, motorists must, or should be, in a position to pay their running expenses, and these might be anything' from £1 per week upwards; therefore, an extra £5 per annum, or 2s per week, should not be a hardship when used to provide a better road, which will reduce their running expenses. The visiting motorist preferred his car to the train, because it gave him greater freedom, and he pays for his fancy. An extra £5 per annum would not stop him. The upshot of the council's action would be that perhaps one half-year's tax would be collected when the Government would bring in a Dominion scheme, which would naturally put the council's by-laws out of existence. All would agree that goo* roads were an asset to any county or borough. Who then would mind the tax to get°an improved roading scheme? New Plymouth cars plying for hire were using the county roads all the time and paying the county nothing. Under tlie new scheme they would have to contribute. Down the coast, continued Mr. Connett, quite a lot of feeling had been shown against the proposal. He analysed the position to get at the true facts of the case. He remarked that when horsedrawn vehicles were handling the produce on the South Road it cost factories, roughly, Is per ton per mile, and the council collected in licenses £l5O per annum. Now, by motor, it costs them no more per ton and the county revenue wis £25. In the meantime maintenance cost had increased 20 per cent., and up to now the county had charged them nothing extra, although the value of their produce had also increased. The increase under the new by-laws would make this difference: A five-ton lorry would handle, roughly, 2000 tons per annum inward and outward, for which a license of £5 was now charged; under the new tariff it would be permitted to carry up to six tons per trip for a fee of £l2" per annum, an increase of £7, equal to Id per ton on 1080 tons. For putting on that increase the council had been told that they deserved tarring and feathering. In reference to cars, it was known that there were some plying for hire\ from the Egmont County to New Plymouth that paid no license to the Taranaki County, and the council intended to collect from them. The private owner would be but he could always travel by hire car if he so preferred. The council Jiad no wish to penalise any section of the community, either outside the county or in New Plymouth, but they felt it was their duty to relieve the ratepayers of some of the unfair load that they would otherwise have to carry. In conclusion, Mr. Connett said the Taranaki County would be pleased to join with other counties in Taranaki in discussing the question of motor traffic, with a view to formulating a satisfactory scheme of taxation and distribution. It was a big question, and would have to be faced as a Dominion question. The Taranaki Province had given a lead in many other imp6rtant matters,, and it might also do so in this. If such could be done, and the proposals placed before the Dominion Counties Conference with unanimous support, there would be a reasonable chance of something definite being done to settle a very vexed question. Every local body had the road maintenance trouble. Mr. Connett said he thought that if those who had e.vpressed their opposition to the by-law had gone to the County Clerk and had a quiet talk with him as to the intention of the council they would have had a somewhat modified view of the position. In regard to the newspapers, he admitted that they had a duty to the public, but lie thought they might have given the council an opportunity to explain their objects, or have made themselves more familiar with the proposition and the working of the by-law. Everyone would admit that the councillors had the best interests of Taranaki at heart. The chairman said there was no rloubt that the men who represented the ratepayers on the council had spent a good deal of time in finding the means for the upkeep of the roads. There was no doubt that the roads wanted attention. So far as his own experience in the late Waitara West Road Board was concerned, he could say that if they had not been merged into the county they would certainly have had to do something in the nature of increasing rates in order to maintain their roads.

THE DISCUSSION. Mr. J. Clarke asked wliy, seeing Mr. Connett had said the county was prepared to confer with other bodies on the matter, they had stood out from the decision of the recent conference of Taranaki local bodies. Mr. Connett replied that the county only stood out on the question of uniform by-laws, and thaC seas because the county bad rewntly, At <unuid«rabl« txpuue,

bail by-tyws of its own made and did not feel justified in incurring the additional expenditure. He was under the impression that the New Plymouth Borough Council had taken up the same attitude.

Mr. Clarke replied that the conference dealt only with county by-laws, which were not suitable to boroughs, and, in consequence, they could he of no service to New Plymouth.

Mr. O. J. Hughes asked if the proposed vehicles tax would do jiway with the necessity for loans, and how much the tax would bring in, and what .would be the cost of collecting it. Mr. Connett replied that the tax wouli" pay interest and sinking fund on loanr ft was not possible at present to comput. v the revenue from the tax. In the matter of collecting, he thought it would cost the salary of an additional inspector. Mi - . Polletti asked why the council did not favor toll-gates. He thought they Were afraid of the public. If the council wanted the extra revenue why should they not go in for toll-gates, and then they would get at the public who used the roads most, including horse-drawn vehicles, which, he thought, was the fairest way of raising money for road .maintenance. (Hear! hearl) Mr. Connett replied that the Government's permission to erect toll-gates would he practically impossible to get now. Moreover, he said, the county had tried some time ago to get a toll-gate on the questioner's road, but they had been blocked.

Mr. D. R. Wright referred to the tollgate which at present taxed .the residents of the Egmont County who came into the Taranaki County. He asked what the Taranaki County paid towards the upkeep of the Egmont roads, which many of their residents used. He suggested that if the revenue was insufficient the council should increase the toll charges, so that those who used the roads most would pay for them. He did not think the Taranaki council, even if they had the power, should put such a tax on the people of other counties, who had no power to retaliate- The tax was a most unfair one, especially to New Plymouth It was like putting a fence around the town, and he hoped the people in New Plymouth would move with all the power they had to prevent the tax heing imposed. Mr. Connett replied, somewhat warmly, that Egmont had cut themselves adrift from Taranaki because they thought they could keep up the roads better than | they were in Taranaki. When asked if they would contribute towards the upkeep of the road leading into their county they declined, and when Taranaki said they would have to put up a tollgate they were told to "do so." He reminded the speaker that Egmont residents did not contribute all the revenue collected at the toll-gate. In a period of two weeks, taken out in 1916, it was found that the revenue was collected in the following proportions: Egmont 40 per cent. ( £l4), Taranaki 31.4 per cent. (£11), and other districts 28 per cent (£10). It would be impossible to maintain the road in the state it was kept without the toll-gate. Mr. Connett admitted that there might be a little hardship on owners of private cars, but he thought the hire cars should certainly pay.

In reply to Mr. Viekers, Mr. Connett said the toll-gate would not be removed when the vehicle tax was imposed. Cr, C. Andrews said the difficulty was that the area along the coast was a very narrow strip, and could never provide in rates the amount necessary to keep up the road in a satisfactory state. Mr. Hughes then moved: That this meeting Is of opinion that a comprehensive motor tax by the Sttate is necessary for the upkeep of roads; also, that the right of local bodies to levy wheel taxes and toll-gate charges be expunged from the Statute Book of the Dominion. In support of the motion, he urged that the county should go in for a big loan and do the work necessary and abolish the paltry ways of raising revenue by wheel and toll-gate taxes. Mr J. Clarke said whatever might be said about Taranaki and the traffic carried on its roads, New Plymouth carried its own traffic and that of Taranaki, Egmont, and others as well. What he was concerned with was not the fact of the tax itself, but the moral effect of such a retrograde step. That sort of thing was hitting North Taranaki. He did not thii\k anyone would object to pay a tax if it was a national one. The proposed tax was a danger to New Plymouth, and must be opposed for all it was worth.

A voice: And you'll have all New Plymouth behind you!

Continuing, Mr. Clarke said many of tlie counties about Wellington wtfre in a worse position than Taranaki, and yet they were not putting on a wheel tax, and did not intend making their counties a scapegoat in order to bring the Government up to what ought to be done. What was wantecj above everything else was the completion of the Opunalco railway, and the county—and all the counties—should combine to get that done. Instead of tinkering about with £5 wheel taxes, they should go for something bigger. He reiterated that the proposed by-law would be fatal to New Plymouth.

Mr. Vickers said lie would prefer to see the council go in for a loan sufficient to meet their requirements. He thought the wheel tax would have a bad effect on the proposed loan for tar-sealing, as the ratepayers who had to guarantee the loan would aho have to pay the additional tax. He pointed out that the council might expect to be in a very

much better position in a short whilt as, with a probable revaluation of th( county next year, it was no dream tc expect that the values would be increased by at least a third. He favored a bigger loan if need be than that proposed by the council, so that some of the side roads could be attended to.

Several present said they would sooner pay more rates than the proposed wheel tax.

Mr. Connett said the council Lad the ] interests of the ratepayers to consider, and was trying to relieve them from the payment of an ex'tra rate. If, however, they were willing to pay an extra rate for the maintenance of good roads, then that was the end of the matter. Tn regard to the railway s while that was very necessary, ho thought the people would have to move themselves a good deal more before much was done in thai direction. He was satisfied, however, that the county's action had drawn attention to an urgent need for national action, and if it resulted in something being done in that direction it' would have served a very useful purpose. Mr. Clarke referred to the influence by which, railway construction was brought about in the South Island, and said it was a fact that Taranaki seemed to have no influence in official quarters in Wellington, and, though he did not see why they should have to do it, yet he felt that unless the people took the power they had and built the railway it would bo a long while before the Government would do it. He thought the Taranaki County might take the lead in the matter. The tot gart of Mr. Hughes' motion