TAX ON MOTORS.

Taranaki Daily News, 15 October 1921, Page 5

TAX ON MOTORS.

PROPOSALS IN NEW BILL. DISCUSSION IN THE HOUSE. OPPOSITION TO MEASURE. By Telegraph.—Press Association. Wellington, Last Night. The Motor Vehicles Bill, providing for additional taxation on motor vehicles, was introduced in the House tonight by the Hon. W. D. Stewart. The Minister said he had received various expressions of opinion on the measure. Car owners, while welcoming the Bill, disagreed with the schedule, as they preferred a tyre tax to any other system of levy. Garage proprietors opposed a tyre tax and supported the Bill’s proposals, while local bodies were not satisfied with the national registration and licensing proposals, as they considered they should be able to secure more revenue for road maintenance. It had. been objected that the Bill proposed the creation of an additional army of public servants, but this was an erroneous idea, as the worx was expected to be done by some existing department. Mr. T. M. Wilford (Leader of the Opposition) asked how any of the money proposed to be raised under the Bill was to be ear-marked for the purpose for which it was raised. He said the Bill was really contingent on the Highways Bill, but this measure was not going to pass, and therefore why impose additional taxation under this Motor Bill? He condemned the amount of license fees many commercial car owners were called upon to pay at, present. The best system of levy was according to use, with differentiation between solid and pneumatic tyres. Sir John Luke (Wellington North) considered that better results would be obtained by extending the powers of lacai government authorities rather than by the proposals contained in the Motor Vehicles Bill and the Highways Bill.

Mr. R. A. Wright (Wellington South) opposed the Bill, which would impose an undue burden on owners. He also condemned the proposal to tax people of the cities, for instance, to build a highway that they would seldom or ever use, while roads in their own locality remained in a shocking condition. It was unjust that local ratepayers should have to pay for the maintenance of city roads for motorists, whose contribution under the Motor Vehicles Bill would go into the Consolidated Fund for expenditure elsewhere. The Minister interjected that cities would get more revenue, under the Bill than they did now.

Mr. Wright said he looked at the matter from the ratepayers’ viewpoint. It the Bill was passed local bodies would lose one of their present sources of revenue, and would be forced to increase their rates.

The Hon. J. G. Coates (Minister or Public Works) pointed out that license fees under the Bill would bring more revenue to local authorities than they got at present. He thought the House would he well advised to pass the second reading and let the measure go to a special committee for consideration. He thought a straight-out flat tax the best.

Mr. R. Masters (Stratford) opposed the Bill, which he said would inflict injustice on people in districts that had been progressive and self-reliant in making good roads for themselves.

Mr. A. D. McLeod (Wairarapa) said members must hesitate to support thia measure until they saw the Bill which would allocate the taxation raised under the Motor Vehicles Bill. He would support the second reading in the hope that when it went to a special committee that committee would have an opportunity at the same time to consider the Highways Bill. He favored a tyre tax. Mr. S. G. Smith (Taranaki) opposed the Bill, which he said attempted to assume functions properly belonging to local authorities. If an attempt was made to push the Bill through the House he would feel it his duty to assist in every way in blocking it. Mr. Massey said the Bill had been introduced for the purpose of ventilating the whole question. Our roads were admittedly in a bad condition, and money was required if these roads were to be put in proper repair. It was proposed to refer the Bill to a committee and then the whole question could he discussed. The Government was simply asking members to assist them, through the Bill, to find a solution of the problem.

After further discussion the Bill was read a second time on the voices.