PETROL PRICES

Press, Volume LXX, Issue 21090, 15 February 1934, Page 8

PETROL PRICES

+ — Government's Decision Criticised VIEWS OF MR F. W. JOHNSTON \ Criticism of the decision of the | Government, as announced in "The I Press" on Monday by the Minister for Industries and Commerce (the Hon. R. Masters), not to fix maximum and minimum prices, either • wholesale or retail, for the petrol [ trade throughout the Dominion I under the Motor Spirits (Regului lion of Prices) Act which was passed near the end of last session, i was expressed .yesterday by the | president of the South Island Motor ! Union (Mr F. W. Johnston). In a i statement made to "The Press'' Mr Johnston said that Mr Maslers's announcement had come as a great shock to members of the Motor Union and of all the clubs affiliated with it. He added that a special j meeting of the executive of the union would be held in a few days to consider the position. ! "It is inconceivable that the Government should have introduced a bill for the fixing of prices and piloted it successfully through I the House without a full knowledge I of the matters which would have j lo be taken into consideration in j fixing the prices by order-in- | council," said Mr Johnston. "It is I equally inconceivable that the Gov- ! ernment secured the passage of the bill through the House with the full j intention of not bringing it into j operation by an appropriate orderi in-council fixing prices. The molor- | isls of the South Island are there- | fore awaiting some explanation. I Statement Beyond Doubt ! "My first impression on reading I Ihc published statement made by ' Mr Masters was that lie had not ; been fully reported, and that he ! was referring on l * to the fixing of the retail price, but the statement ■ reported in yesterday's issue of ! 'The Press' by Mr W. M. King, chairman of the Wellington Re- : sellers' Organisation, that ho had received a' letter from Mr Masters : stating definitely that the Govern- . ment did not propose to fix either : the wholesale or retail price of petrol in the Dominion places this matter beyond doubt. As one who , has some little knowledge of costs : and prices, I would venture the opinion that any difficulties in regard to fixing prices, either wholesale or retail, are far from insuperable, and if the Government is so 1 inclined could readily bo overcome. "The lot of the resellers certainly rcouircs some control and amcliora- -. tioii. Thev give service at all hours of the day and night and on SunI days and holidays, and have to | compete with those whose business ' is not solely restricted to the sale ! i'f petrol, and who do not give con- . tinuat service to the public Over-Supply of Bowsers i "With regard to Mr Maslers's rc- ' ported statement that the petrol selling industry as at present established in New Zealand is an uneconomic industry in as much as the country is over-supplied with scr- '■ vice stations and bowsers, it must .' be borne in mind that what are ; known as the major companies may ! have been responsible for this overI supply. "Personally I cannot subscribe ft r ' one moment to Mr Masters's_ pro- | nouncement that fixing the price of j petrol is surrounded with tremeni dous administrative difficulties. Pet- ; rol is a commodity which affects ! the commercial life of the whole I community, and in this respect cani not be compared with any other ' article of commerce. Moreover, the ; fixing of a price, maximum as well ; as minimum, would not be at the i cost of the general public if the i effect of fixing prices were to keep i alive the Associated Motorists' Peli rol Company, Limited, the only real i opposition to the major companies. The extinction of this company | obviously must result in a greatly ! enhanced price of petrol to the pub- | lie. Apart, altogether from the i Minister fixing maximum as well as I minimum prices, the public may i rest assured thai, so long as the j Associated Motorists' Petrol Cum- ; puny, whose policy is controlled by ! men holding the highest positions ; in motoring organisations In-day, ; remains in existence prices will not i he permitted to soar 1o undue i heights. | "The executive of Mie Smith 1 Island Motor Union, one of the j petitioners to the Crown in eonI nexion with the matter, will hold ' a special meeting shortly for fur- ; thor consideration of Mi- Maslers's I statement, on behalf of the Cabinet." ; General Motor Taxation ! Discussing motor taxation in gon- | era I Mr .Johnston said: "One might compliment the ( 'dit.or hi 'The .Press' on the lead- ! inn article in yesterday's issue, were : it not. somewhat fulsome to complii men! a journalist or anyone else on | fulfilling a duly to the' public. The | article must appeal to every motor- ; isl and right-thinking taxpayer . throughout the length and breadth of ihc land. "There are certain facts about . petrol taxation which should be | placed before the public, freed of i all complexities of detail. Taking i the peti'ol tax as approximately lOd, ; 4d of that goes direct to the Coni solidated Fund and Gd to the HighI ways Board; out of the latter the ! Consolidated Fund has been receiving half a million per annum. A i sum of £200.000 represents Id of ! the tax, so that the £500,000 taken ' by the Consolidated Fund represents 2'd out of the Cd. Therefore, , out of the total tax of approxi- ! mutely lOd the Government takes ' its 4d plus 2Jd, leaving the division | at that point of 6id to the Govj ernment and 3id to the Highways j Board. However, out of the amount ■ which nominally goes to the Highways Boai'd the subsidy on rates . is paid amounting to approximately . lid, so that out of the whole lOd \ petrol tax the Government gets 8d and the Main Highways Board 2d, out of which it is supposed to provide for the roads after paying for the cost of administration."