MOTOR TAXATION

Wairarapa Times-Age, 9 August 1938, Page 7

MOTOR TAXATION

INCREASED EXPENDITURE NEEDED. PROGRESS LEAGUE VIEWS. “With the rapid growth in motor traffic, the need for greater expenditure on maintenance and improvement of our highways is becoming increasingly difficult,” stated a letter received at last night’s meeting of the Martinborough Council from the Canterbury Progress League. The Highways Board appeared to be doing everything possible with its available income, plus what it could borrow to meet the pressing demand for increased expenditure, the letter added, and local bodies were also doing all they could with their limited funds to meet the extra wear and tear on the roads. The Highways Committee of the Canterbury Progress League had devoted much time and thought to the question and had prepared a report, a copy of which was forwarded. The purpose of the report was to show that a large proportion of the money derived from the motor spirits tax, which should be spent on the roads, was being credited to the Consolidated Fund and used for general purposes of the Government.* In the fiscal period 1936-37, the total revenue from motor taxation amounted to £5,348,019 including net revenue from the motor spirits tax of £3,370,048 and of that total no less than £2,591,644 went into the Consolidated Fund. Almost half of the motor taxation collected ■ was used for purposes other than roads. If the whole of the net proceeds from motor taxation were devoted to roading purposes, the Highways Board would not only be freed from the necessity of borrowing money to cope with the urgent roading requirements of the country, but more money would be available and essential works could be put in hand earlier and carried out more expeditiously than at present. It was proposed that all local bodies and others concerned in the roading question should join in a combined effort to urge the Government to bring about the desired change. The council was requested to carry a resolution to that effect and send it forward to the Prime Minister. “If they did not spend the money out of that fund they would have to tax us in another way,” commented Councillor C. R. Holmes, who added, “the money has to come from somewhere.” The letter was received.