PETROL RATION AND STOCKS

Press, Volume LXXVI, Issue 23129, 19 September 1940, Page 6

PETROL RATION AND STOCKS

Certain Reserve To Be Established REVIEW OF POLICY TO FOLLOW (PRESS ASSOCIATION, TELEGRAM.) WELLINGTON, September 18., "On the attainment of a petrol reserve of a certain quantity in New Zealand, the petrol rationing policy will be completely reviewed,” said the Minister for Supply (the Hon. D. G. Sullivan) at the motor tra’de conference dinner to-night. The Minister fold the gathering the quantity of petrol in the country and the reserve that was the Government’s aim; but asked that the figures be not published. He assured his hearers that the sacrifices rationing had caused the trade to make were necessary, and to the advantage of New Zealand. SUPPLIES FROM EAST INDIES DOLLAR EXCHANGE INVOLVED ADDRESS BY SIR HARRY BATTERBEE (press association telegram.) WELLINGTON, September 18. “The more the pqcple of New Zealand deny themselves the use of petrol the greater their contribution to the common war effort,” said Sir Harry Batterbee, High Commissioner for the United Kingdom in New Zealand, at a New Zealand motor trade federation dinner to-night, in explaining that the purchase of petrol in the Netherlands East Indies often involves an inroad on the dollar exchange. “I recognise, we all recognise, how important petrol is to trade and industry, and how hampering any restriction on its use must necessarily be,” said Sir Harry. “But on the other is no need for me to emr phasise the importance of conserving foreign exchange, especially dollars, when every dollar available is required to buy aeroplanes, guns, and munitions of all kinds for the defence of those hard-beset people of Great Britain; and, of course, the defence of Great Britain means the defence of New Zealand. But I often hear the question asked: can we not avoid the use of foreign exchange, and obviate the need for such strict economy by buying from the Dutch East Indies? I think there is some misconception about this. Because the Dutch are our gallant allies in the war, people have thought that Dutch currency is, for practical purposes, the same as sterling. This is not so. We have, it is true, an agreement with the Dutch which fixes the rate of exchange; but the Netherlands East Indies cannot be regarded for purposes of exchange as part of the sterling area, and consequently any purchase in’ the Netherlands East Indies gives rise .to claims on our foreign exchange resources. “In particular, the purchase of petrol in the Netherlands East Indies may involve and, indeed, often does involve, an inroad on the dollar exchange. So it all really comes to the same thing in the end. You cannot buy petrol without the danger of an inroad on the dollar exchange. “The co-operation which is being given by New Zealand in the limitation of petrol imports is most warmly welcomed in the United Kingdom. An expression of the United Kingdom Government’s appreciation has been conveyed to the Dominion ■ Government.” RATIONING OF PETROL EFFECT ON MOTOR BODY BUILDERS The efforts of the New Zealand Motor Trades Federation to obtain the restoration of the most recent cut in petrol consumption, made last July, were given approval and support at a meeting of the Canterbury Coach and Motor Body Builders’ Association. Members of the association said that the restrictions had brought the industry to a deplorable condition. ' It was stated that the trade was already suffering through import restrictions when the progressive reduction of petrol to the private owners of vehicles had the effect of closing up the only other avenue of work, mainly repairs and painting. This had caused factories and plants to be working with greatly reduced staffs, causing loss of employment by many skilled workmen. On several occasions the entire facilities of the industry had been offered to the Government to aid in the war effort, and on only one occasion had a contract for the building of Army vehicles been let in the South Island. These had been produced in record time, and the builders considered that equal treatment with the North Island builders should be given in the matter of contracts placed by the Government for Army vehicles.