CONTROL OF RETAIL PETROL STATIONS

Press, Volume CII, Issue 30076, 9 March 1963, Page 10

CONTROL OF RETAIL PETROL STATIONS

Inquiry Into Alleged Oil Companies’ Move

(New Zealand Pres* Association)

WELLINGTON, March 8.

The Government has asked the Motor Spirits Licensing Authority to investigate allegations of attempts by oil companies to secure control of retail petrol stations.

The Minister of Industries and Commerce (Mr Marshall) tonight released the text of a telegram he sent this afternoon to the six oil companies holding wholesale licences for the sale of motor spirits in New Zealand. The telegram also went to the New Zealand Retail Motor Trade Association.

“Evidence is rapidly accumulating in the possession of the Government of a concerted campaign during the last few days to purchase shares or otherwise to obtain controlling interest in retail outlets for motor spirits in many parts of New Zealand,” said the telegram.

“While these transactions may or may not be contrary to the letter of the Motor Spirits Distribution Act, I am much concerned at a deliberate course of action which appears to be contrary to the spirit of the legislation.” Mr Marshall’s telegram said. “As you know, it is the long-standing policy of the Government that wholesale licence-holders should not own or control directly or indirectly retail outlets for the sale of motor spirits. “I have asked the Motor Spirits Licensing Authority to investigate the position. “In the meantime I wish to make it known that if this investigation confirms present indications, I would feel justified, after giving this notice which will be made public, of recommending legislation to take effect from

today to ensure that the spirit of the legislation and the policy of the Government are complied with. I will take an early opportunity of meeting you to discuss the position fully,” the telegram said. No Comment

A Press Association reporter tonight telephoned a •number of heads of the six oil companies. Some had seen the text of Mr Marshall’s telegram. Others said that they had heard about such a telegram, but it had not reached their offices before the close of business today.

All those spoken to declined to make any comment on the telegram pending the meeting with Mr Marshall.

The Motor Spirits Licensing Authority consists of Mr R. W. Edgley, of Christchurch,

as chairman, with Messrs H. L. Wise, of Wellington, and J. L. Hazlett, of Invercargill, as members.

"Although a complete change of membership has taken place in a comparatively short time, there has been no major change in policy,” said the last annual report of the Department of Industries and Commerce in a reference to the authority. The report said that the legislation under which the authority operated had been in force for seven years. “It is designed to serve the interests of both the public and the industry by ensuring the orderly distribution of motor spirits.” commented the report. ’ During 1962 the authority’s decisions included 1019 approvals for 45 new pump licences, 299 additional pumps. 272 transfers, 202 changes of site, 120 variations of licences (mainly for bulk sales) and 30 revocations.