PETROL PURCHASES

Ashburton Guardian, Volume 61, Issue 22, 6 November 1940, Page 8

PETROL PURCHASES

EFFECT ON DOLLAR EXCHANGE.

CLEAR STATEMENT DESIRED. (Per Press Association). WELLINGTON, November 5. Tho following statement was issued by the New Zealand Alotor Trade Federation to-day:— “On October 24, when the Prime Minister (the Rt. Hon. P. Fraser) was speaking at-the annual dinner of the Canterbury Chamber of Commerce, he dealt with the question' of petrol rationing, and he stated his agreement that there is room for a difference ol opinion about this very vital issue. Ho went on to say that when he was in England the then Chancellor of the Exchequer (Sir John Simon) indicated that the United Kingdom Government was not favourably impressed by the action of this Dominion in completely relaxing tho petrol restrictions in December and January last. The Prime Alinister stated that the British Government would not dream of laying down details of.the rationing‘s'cheihe to be adopted in New Zealand. He then went on to make the most important statement that the last and most drastic cut in the ration had been made after full consideration of New Zealand’s own defence position, and for this reason tho Government had to establish a certain reserve for the use of the armed forces.

“The /New Zealand Alotor Trade Federation has never advocated discontinuance of the rationing scheme, but an easement of it, and has consistently favoured the establishment of adequate reserves. Representatives of tho trade agreed to the cut on July 1. A case was made for the establishment of such reserves. Now that the stock position is satisfactory, and tho reserves adequate, tho motor trade and motorists arc entitled to expect that the July cut will he restored. The Dollar Situation. “New we find that yesterday, in Auckland, the Hon. W. Nash, stated that he has no knowledge, and he thinks it very unlikely,. that the Government was contemplating the early restoration of the petrol ration to the figure prevailing before the July cut He goes on to say that there would have to he a change in the dollar situation before that could, happen. Then Air Nash makes one of his typically confusing statements : ‘lt was still a fact, however, that every dollair used to buy petrol for civil consumption was a dollar less for the purchase of munitions by the United Kingdom.’

“It Is time Air Nash canye out into the open, and told the people of the Dominion exactly what proportion of the money spent by New Zealand in purchasing petrol is ultimately converted into dollar exchange. The department of economics of Canterbury University College, in consultation with ’the Canterbury Chamber of Commerce in their October bulletin, deals eoncisiely with this question. The con elusion arrived at- in that survey is that each £1 spent on petrol in Nev, Zealand involves a reduction in Empire dollar or foreign exchange holdings amounting to less than two- shillings sterling ‘ It is reported that Air Nash is hold' ing a public meeting in the Auckland Town Hall on the evening of Wednesday. The Alotor Trade Federation invites Air Nash to make a clear, concise statement as to the amount of dollar exchange necessary to give the motoring, public id New Zealand the additional 1,000,000 gallons a, month which the Motor Trade Federation thinks is necessary to prevent stabilisation in the motor industry. At the same time Air Nash might- state why New Zealand is being rationed more severely in petrol than any other British*' Dominion, icr it*ny Groton Colony. Further, will Air Nash deny that an assurance was given by a responsible officer of the Government to representatives of thci motor trade that; when the stock position reached a satisfactory figure, the July cut* would be restored, and that such assurance had niOi reference! whatever to the dollair position.”