HOURS FOR SALE OF PETROL

Press, Volume LXXXVIII, Issue 26813, 19 August 1952, Page 8

HOURS FOR SALE OF PETROL

MINISTER’S ATTITUDE CRITICISED

WELLINGTON RESELLERS’ COMMENT (New Zealand Press Association) W ELLINGTON. August 18. A deputation of petrol resellers was told bv the Minister of Labour '.Mr W. Sullivan) that if they did not like the business they were in. they should get out of it. Mr W. King, chairman of the Emergency Petrol Company, of Wellington, who is also chairman of the petrol section of the Retail Motor Trade Association. said this last night when replying to criticism of the attitude of Wellington resellers to the lifting of the restrictions on the closing hours of petrol stations. Mr King said that the Minister’s decision was ill-considered and his remark to the deputation gave some idea of how he had arrived at it. ”1: should be borne in mind that resellers operate on a small margin of profit in New Zealand." he said. “In Britain the margin of profit is 4d, and in Australia it is 3id a gallon. The margin in New Zealand was fixed at 3d in 1935. after a Government survey of resellers’ accounts. “It is true that the consumption of petrol is 50 -■'r cent, greater to-day than in 1935, but the number of licences has increased correspondingly and the operating costs of service stations have trebled. Petrol stations under the hours regulations were open for 59 hours a week and penal wage rates were paid in excess of 40 hours.” Mr King said there was an emergency petrol station in Wellington owned and operated by the trade to give an after-hours service. The hours observed by that eta t inn were approved by the Automobile Association ‘Wellington- ana the North Island Motor Union.

Between 3 pjn. Saturday and 5 pjn. Sunday this station was open for 13 hours and in that period sold 1600 to I&ai gallons. -When you consider that 19,236 cars are registered in Wellingtcn and only 600 cars use that station in the week-end. it indicates that only 3 per cent of motorists fail to co-operate and obtain supplies during normal trading hours.” said Mr King. “Surely this does not call for further sacrifices to be made on the part of resellers to cater for the pleasure of the few who could, in the main, obtain their week-end supplies during normal hours.” Mr King said that a critic had referred to high prices being paid for service stations. This was correct, but the oil companies were the purchasers and they desired to get control of reselling outlets. “In this country, where inc ustrv has been developed and built up bv the small trader, a monopolv of this kind is most undesirable," he said x? Z&n <S2l m - panies had spent about f^ 000 ; t?,e P urchase of stations, ne added. Company, executives made secret that these millions spent by them would be recovered eventually from tne consumers of petrol. CANTERBURY BRANCH’S STATEMENT The petrol section of the Canterbury branch of the New Zealand Retail Motor Trade Association made •the following statement to “The Press” last evening“This section confirms that the 59-hour-a-week coverage given to the motoring public will be continued. In addition to this service two afterhours stations, operated bv After Hours Petrol Service. Christchurch, Ltd_, Latimer square, and bv Gold Band Taxis. L*tL. Tuam street, are continuing to give a 24-hour service •even days a week. “The section has on its files letters of appreciation from individual motorists and from a large transport organisation expressing appreciation of the services given after hours, “On August 11, the trade sent to the Prime Minister (Mr Holland), the Minister of Labour (Mr W. Sullivan) and to all members of Parliament : the Canterbury area, telegrams expressing disapproval of the revocation of the petrol hours regulations, and to date have had only one acknowledgement. We would like to point out that if all stations opened seven days a week as provided in the new regulations no more petrol would be sold but an enormous increase in operating expenses would be incurred, which is net warranted on the present low profit margin. We endorse all Mr King has said. “We express concern that Mr Sullivan saw fit to revoke the regulations without consulting one of the largest employers of labour in New Zealand, the retail motor trade.”