Inquiry Ordered Into Oil Firms’ Activities

Press, Volume CII, Issue 30103, 10 April 1963, Page 14

Inquiry Ordered Into Oil Firms’ Activities

(New Zealand Press Association)

WELLINGTON, April 9.

The chairman of the Motor Spirits Licensing Authority (Mr R. W. Edgley) announced tonight that there would be a public inquiry into allegations of oil companies’ attempts to secure control of retail petrol outlets.

In future, he said, no wholesaler or retailer would be allowed to switch brands without the consent of the authority.

“The authority has decided on these two courses of action to meet the situation arising from complaints of efforts to secure control of retail outlets for the sale of motor spirits,” said Mr Edgley. "There has been a spate of purchases of service stations at what appears to be greatly inflated prices. “There have also been other allied activities. ‘The object of such actions is to secure the outlet for the sale of the brand of motor spirits supplied by a particular oil company and for that brand alone. “Actions of the kind complained of are contrary to the spirit, if not the letter of the law.” The full authority, consisting of Mr Edgley, Mr H. L. Wise of Wellington, and Mr J. L.’ Hazlett, of Invercargill,

had met in Christchurch and. had decided on two courses of action to meet the situa-' tion.

“First, the authority intends to attach a condition to every retailer’s licence that the brand or brands of motor spirits shall not be changed without the granting of consent by the authority consequent on application being made under the act,” said Mr Edgley. "The requisite notice of 14 clear days is being given to each retailer of motor spirits of the authority’s intention, and each retailer will have such 14 days’ notice to forward to the authority in writing any objections to this proposed amendment to his licence.

“Every holder of a wholesaler’s licence is, likewise, being given notice by the authority of its intention to amend each such licence by

imposing conditions which will be complementary to the condition to be attached to each retailer's licence. “It is intended that no wholesaler will be permitted to change the brand or brands supplied as at April 8, 1963, without the granting of the consent by the authority, consequent on application being made under the act.

“The authority believes that the attachment of these conditions to both retailers’ and wholesaler’s licences will act as a deterrent to further transactions of the type referred to.

“There are powers under the legislation to suspend or revoke any licence as a penalty for breach of any of the conditions attached to such licence.

“Second, the authority has decided to hold a public inquiry into the matter, as provided for by the Motor Spirits Distribution Act. 1953 If it is found that breaches of the act have been committed. consideration will then be given by the authority to the taking of appropriate action, which can be suspension or revocation of licence or prosecution under the act. No date has yet been fixed for the inquiry as certain preliminary work has still to be carried out.”