PETROL POSITION.

Auckland Star, Volume LXXI, Issue 206, 30 August 1940, Page 8

PETROL POSITION.

EFFECT ON DOMINION.

MOTOR TRADER'S VIEW.

Facts and figures concerning the petrol restriction and the effect it was having upon the motor trade a* well as the public were given by Mr. C. R. Edmond, of Wellington, president of the Motor Traders' Federation, in an address to delegates at the XJ.M.U. conference to-day. The petrol restriction had got to the position where it was affecting the economy of the Dominion and it was thus affecting the Dominion's war effort, he said. He traced the hUtory of the restrictions, pointing out that the original scheme was drafted by a committee on which there wa* no "representative of the motor traj*. Mr. Na..'.. had said in the House yesterday that The main reason for the restriction was the conservation of petrol agairst national emergency, yet, after ten months of war and eight months of re-trictious, the stocks of petrol in the Dominion had fallen substantially. In the first five months of this year the importation of petrol had dropped by 17,000.000 gallons. Stocks and Sales. Mr. Edmond pointed out that the petrol companies imported stocks in line with their sales. If sales went down stocks fell. Unless the sales increased it wae likely that stocks would be diverted from New Zealand because naturally what the petrol com>anies— most of whom were fereign-owned — wanted was the sale of their product. They could not be expected to hold large stocks for which they were uot gettin» sales. °

Dealing with the hanging of the situation in other countries, Mr. Edniond pointed out that there were no restrictions in Australia ae yet and that in the restrictions scheme which was coming into force in October over there a- really scientific attempt was made to meet the situation. Users were divided into 25 different classes *nd the basic ration was 10 gallone a month for email cars. In New Zealand the basic ration was four gallone. For 10 h.p. cars 11 gallons would be allowed (New Zealand six gallons). Above 14 h.p. 16, 19 and 23 gallons a month were Wing allocated in Australia, against New Zealand"* eight.

"If rationing were necessary it would be more so in Australia than in New Zealand," he said, "because of the greater number of users and demand.' . He quoted the cabled statement of the leader of the Australian Labour party. Mr. J. Curtin, concerning hie policy, ifr! Curtin held that Australia's scheme was too severe. Exchange Position. Dollar exchange was a confused issue, eaid Mr. Edmond. In New Zealand today we were importing 69 per cent of our petrol from the Dutch East Indies. The "Sydney Sun," on August 2 had stated in an article that the position regarding petrol would now be unproved as the Dutch East Indies had joined the sterling bloc and in future starling pavment could be made instead of dollar payment. It had been stated here that the New Zealand Government had communicated with its High Commissioner in London regarding that question, and that the belief expressed by the "Sun" had been "definitely discounted." He thought that statement needed further elucidation. It had not been asserted that the statement was not true.

The saving that had been made in sterling, Through reduced imports, according to recent figures, amounted to £3,000 r 000 more than in the previous period. Of tnat saving the motor trade in all its various branches had provided £2.332,510. The figures for the importaof beverage*, for instance, had shown increases.

"We don't disagree with the saving of waste and the conservation of petrol," he said, "but we believe we are being asked to bear a greater burden than we should be asked to bear. We do not think that we are getting fair consideration." 5 Position In England. The basic ration on petrol in England was actually less than it was in New Zealand. In the House of Commons recently. Mr. Lloyd, of the Ministry controlling petrol supplies, had stated that Britain was now assured of stocks of petrol. He had added that there was no need in England for private motorists not to use their cars for recreational purposes. They could use up to lull limit of their allowance without fear. Yet in New Zealand that was not the position.

"We should either have rationing or a free hand." he said. "If w e are going to have rationing we «huuld be able to use our full petrol allowance without being accused of being disloyal.