RATIONING OF PETROL

Press, Volume LXXVI, Issue 23131, 21 September 1940, Page 14

RATIONING OF PETROL

Mr Nash Defends

Restrictions

HELP FOR WAR

EFFORT

ITRES3 ASSOCIATION TELEGRAM.)

WELLINGTON, September 20,

;]• In a review of the petrol restrictions the Minister for Finance (the Hon. W. i;- Nash) declared that the belief that ap- /. peered to be held among motorists and I? organisations associated with the motcr y Industry, that the Government had '■>. been unjust in restricting the use of ' petrol, was not borne out by the facts. Mr Nash said that since the outbreak of war the Government had given careful attention to the needs of ; extensive industry, to the requirements of essential transport services, and also i; ’ to the interests of private motorists, t, Everything possible was done to secure '/i an equitable scale of rationing. “However, vital needs muso come first,” he said. “We dare not take risks in establishing and maintaining >i adequate petrol supplies for defence A emergency purposes. If our stocks of i' petrol got low we wculd not be sure of replenishing them at a moments £ notice. Oil tankers are not waiting a. 4 our beck and call. Nor must we for--5 get the risk they run of enemy action at sea. The State does not possess vast S reservoirs of petrol which could be g kept intact for defence purposes. The f storage tanks are more likely to hold enough for essential requirements if V motorists would try to use even less js than the ration allowed. Before the ii war we used more petrol a head than (I the people of any other country, except the United States, but that flow *•:] could not be maintained under war i? hazards. $ •j Resentment Regretted 1 It was to be regretted that protests I against the restrictions had warmed up | to resentment and a sense of injusH tice. There was no valid reason for % anything like that. Mr Nash admitted I that there was hardship, but declared that the best efforts of good citizens for the victorious prosecution of the war should not be weakened by the curtailment of petrol supplies. It would be helping the enemy to give detailed information about petrol reserves and requirements, but it was enough to say that the conditions were such as to encourage more cheerful co-opera-tion with the Government and Great Britain in conserving petrol stocks, and in making the best possible national use of the rationed supplies. “I frankly admit that the restrictions this year have caused material loss and inconvenience to many people. With the same frankness I concede that points in the argument against the restrictions have been well taken, and in good faith without prejudice to 1 the war effort. It has been shown be- : yond dispute that the motor industry | has been hit heavily, that the services 5 of many workers have reluctantly had |, to be dispensed with, that the Treasury | has been deprived of taxation revenue. J I agree. Who knows better than I f how much all these facts mean to the 3 State. But I also know that no gov- § ernment would be foolish enough in I the prevailing circumstances to bring these conditions into force without good reason.” Exchange Position In reviewing the exchange situation, which was a vital factor in rationing, Mr Nash said, petrel for use in New Zealand had to be paid for in foreign exchange. To-day guns and munitions were more essential for the Motherland than cars and petrol for the citizens of any country in the Commonwealth. Every gallon saved was an aid to victory. Britain’s needs must coma first. She was bearing the brunt of the hideous battle. Her Government sought New Zealand’s co-operation In every helpful way. From the outbreak of war the Government, Parliament, and people of New Zealand had agreed, without qualification, to co-operate in Britain's waf effort. Among the requirements was a request by the British Government to restrict the consumption of petrol, and to make the most advantageous use of sterling to increase Britain’s purchasing power in the dollar countries. The response of the people as a whole was magnificent, There I had been no whimpering. “It is also true that the motor industry and many users of petrol honestly believe that they have been harshly treated. I cannot agree. Every J restriction placed upon them has been carefully examined and weighed in the balance of national needs, Petrol rationing was introduced at the outbreak of war for the sole purpose of building up adequate reserves, That ' objective was attained three months later, and the Government then lifted 'the restrictions to provide petrol for holiday travel, although the British Government advised on September 16 that cutting down petrol imports would be of real assistance in the financial field. With this in mind, the New Zealand Government, in close co-oper-ation with the British Ministry, decided at the end of January to reintroduce rationing on February 1. Baals of Rationing The basis of rationing still left the aggregate consumption at the substantial total of 72.000,000 gallons a year. It was then stated that unless there

was a serious deterioration in tlie intcrnational situation the Government did net intend to reduce the rationing SC “However, subsequent d—elopments in Europe made it imperative for this country to increase its petrol stocks for defence, and make sure of an adequate supply in the public interest. To bring this about as speedily as possible special action was taken in respect of all business, commercial, and road transport, and the private car ration was reduced by one-third. This Ii} s l tory of rationing showed plainly that every step was taken in relation to changing circumstances.” The assertion that there was no need fer such drastic restrictions was hollow- If there had been no necessity for the latest reduction there would have been no further cut at all. Doubt had teen expressed whether the British Government had requested the New Zealand Government to impose the restrictions, Mr Nash said. “There is no foundation for any doubt. I made that clear in my reply to an urgent question in Parliament on June 29 regarding exchange.” The Minister recalled the messages he read on that occasion from the British Government, making clear the imperative need, not only for conserving dollar exchange, but also for conserving imports from the Dutch East Indies, although they were actually within the sterling group. Only last month the British Government, in response to an inquiry, had cabled that it still desired New Zealand to restrict. The position had not altered since then, declared Mr Nosh. He could only repeat what he had said in Parliament—that New Zealand must ensure that its defence was not affected by a curtailment of the stocks of petrol, and that no avoidable charges were made on dollar funds.

“Let me say again that the Government will take steps to investigate the position of employees associated with the motor industry, and will endeavour to ameliorate any hardship that might arise owing to the necessities of the defence situation. The position will be continuously reviewed according to the orevailing circumstances, the stocks in hand and the exchange position. When defence requirements are fully met, and we can purchase without injuring or retarding Great Britain's war effort, the allocations will be adjusted.”

CONSIDERATION NEXT MONTH

STATEMENT BY PRIME MINISTER

(PRESS ASSOCIATION TBtEGBAiI.)

NAPIER, September 20. The Prime Minister (the Rt. Hon, P, Fraser), speaking to a deputation of petrol resellers, said that the Government would reconsider the petrol restrictions next month. He was asked for another 1,000,000 gallons a month.

PETITION BY EMPLOYEES IN NORTH OTAGO

OAMARU, September 20. More than 60 employees In the motor industry in North Otago nave sent a petition to the Minister for Labour (the Hon. P. C. Webb) seeking his support for an increase in petrol rations to prevent further unemployment In their ranks.