Farmers Oppose Dearer Petrol

Press, Volume CVII, Issue 31548, 9 December 1967, Page 40

Farmers Oppose Dearer Petrol

(New Zealand Press Association)

HAMILTON, December 8.

An increase in the price of petrol must be strongly resisted, the Dominion president of Federated Farmers (Mr P. S. Plummer) said in Hamilton today.

Commenting on the approaches being made by oil companies to the Government about the price of petrol since devaluation, Mr Plummer said a price increase would only initiate a series of cost increases for almost every section of the community.

“The farmer, as a ‘price taker’ as opposed to a ‘price maker’, must ultimately bear the full burden of increases in such costs,” he said. “The federation is opposed to any increases in transport costs in the present economic circumstances.”

Mr Plummer stressed his view that no increase was necessary. “It should be possible for the Government and the oil companies to agree on a formula whereby the effects of devaluation can be met by a reduction in the tax level and/or a reduction in the wholesalers’ profit margin,” he said.

“Apart from the Department of Industries and Commerce, the only organisations opposing the increases are the Federated Farmers and the Automobile Association.

“I am concerned to learn that a prime user of motor spirits, the road transport industry, did not make submissions.

“Farmers can only Infer from this that the industry is not concerned at the effects of such an application if granted by the Price Tribunal. “Presumably the industry is reclining in its comfortable position of being able to pass on any increased costs, and is therefore adopting the attitude that whatever way the tribunal decides it cannot lose,” Mr Plummer said.