RATIONING OF PETROL

Press, Volume LXXXVI, Issue 26124, 29 May 1950, Page 8

RATIONING OF PETROL

CONSIDERATION BY CABINET

STATEMENT BY MR HOLLAND

(New Zealand Press Association) AUCKLAND, May 28. “Petrol rationing will definitely be on the Cabinet agenda for Wednesday next,” said the Prime Minister (Mr Holland) to-night. In making this announcement, Mr Holland said there had, all along, been two main reasons for continuing petrol •ationing in New Zealand. “These have been, first, because the United Kingdom Government made the strongest possible representations that for New Zealand to drop petrol rationing would add considerably to Britain’s dollar difficulties and, second, because of New Zealand’s own unsatisfactory overseas balance of payments situation.” he said.

“The first I knew of Britain’s decision to abandon rationing was when I saw the announcement in Saturday’s newspapers, and 1 am bound to say this is a very unusual way of receiving information of this importance, especially when we have ourselves been continuing rationing at the specific request of the United Kingdom Government. The main reason for petrol rationing has now disappeared, and as our own balance of payments situation has been steadily improving since the end of December, the way is now open for Cabinet to reconsider the whole question in the light of the changed circumstances now prevailing. This will be done as soon as I return to Wellington for next Wednesday’s Cabinet meeting.”

EFFECT ON PETROL SALES

“NO INCREASE THOUGHT LIKELY ” (New Zealana Press Association)

WELLINGTON. May 28. He and his colleagues thought that if the restrictions were lifted, there would be no increase in petrol sales in New Zealand, said Mr E. A. Batt, chairman of the council of the Automobile Association of New Zealand, to-day, commenting on the possibility of petrol rationing being abolished. That had been clearly demonstrated in the past, when restrictions were imposed and then lifted, he said. Consumption to-day, he understood, was about 130,000.000 gallons a year—the highest ever in the history of New Zealand motoring. “I feel quite certain, and those of us who have studied the question over a period of years feel there is not a shadow of a doubt that the over-all consumption will not increase,” said Mr Batt. He said, however, that the position had still to be considered from the viewpoint of the Minister of Finance. as sterling funds had still to be provided for petrol and sterling funds were short, even for ordinary merchandise.

“We are not in a very flush position as regards sterling funds in London, and that might be a reason which could be found for not abolishing rationing,” said Mr Batt.