Free trade in oil called for

Press, Volume CXIV, Issue 33653, 1 October 1974, Page 22

Free trade in oil called for

(,\'eiv Zealand Press Association') WELLINGTON. Free competition in the oil industry in New Zealand would benefit the consumer, a lawyer representing Mobil Oil company, Mr J. B. Dalgety, told the Commission of Inquiry into Oil Products Distribution.

Mr Dalgety was crossexamining a'Department of Trade and Industry officer, Mr

R. J. Gillon, on his department’s submission to the commission.

Mr Gillon said that the oil industry in New Zealand was tightly controlled. This included controls on selling outlets through town planning and motor spirits licensing legislation. He did not think any other industry in the country was ‘controlled as tightly.

This meant severe restrictions on competition in the oil industry, particularly of prices.

The industry was efficient, and some of the criticism of it was unfair, unjust, and illinformed, he said. In some measure the criticism had come from the efforts of the industry to break out of restraints on competition. Mr Gillon agreed that both National and Labour Governments had endorsed the principle of free and unfettered competition. Also price competition was regarded as the key to real competition by his department.