FREE MARKET IN PETROL

Press, Volume LXXXVI, Issue 26127, 1 June 1950, Page 6

FREE MARKET IN PETROL

Ration System Abolished ANNOUNCEMENT BY MR HOLLAND (New Zealand Press Association) WELLINGTON. May 31. Free marketing of petrol will be resumed in New Zealand tomorrow’. After a meeting of the Cabinet to-day, the Prime Minister (Mr Holland) announced that it had been decided to abolish petrol rationing. Mr Holland said that the Cabinet, 4n its examination of petrol marketing, had given full regard to the sterling position. It was appreciated that the end of petrol rationing would involve additional demands on New’ Zealand’s sterling funds. These, however, had shown some improvement recently, and it was considered that the extra burden involved in the purchase of additional motor spirit could be accepted. Mr Holland said it could be expected in any case that a substantial portion of the additional petrol supplies needed would be supplied by British companies from sterling area sources. “During the last few days, the United Kingdom Government, in the course of discussions with the United States Government and oil companies, has arrived at arrangements whereby United States companies, so far as they are concerned, will provide against the payment in sterling for the necessary additional quantities of motor spirit to permit derationing,’’ Mr Holland continued. “It is in these circumstances and in pursuance of a policy which provides to the fullest possible extent for the procurement of our oil supplies on the basis that involves the least dollar expenditure, that the New Zealand Government has decided to terminate the rationing of motor spirit.” Mr Holland said that, in earlier statements, he had made it clear that the rationing of petrol in New Zealand had been maintained essentially by the need to restrict dollar expenditure. New Zealand’s policy had been based on information conveyed to the Government from time to time by the United Kingdom Government. Mr Holland added; “It is gratifying to realise that the costs and inconvenience inevitably associated with the rationing of motor spirit can now be avoided. With this decision to deration motor spirit, the Government has now removed all rationing controls. and given effect to one important element of its policy: to promote the freedom of the citizens, and to reduce restrictions upon them to the fullest possible extent.”