Carter declares war on oil lobby

Press, 9 April 1979, Page 8

Carter declares war on oil lobby

NZPA-Reuter Richmond (Virginia) President Jimmy Carter has declared war on the United States oil companies over his plan to start lifting price controls in domestic-ally-produced oil. The President’s plan to cut American oil consumption, which he announced last

week, includes lifting Government controls on domestically produced oil, allowing the price to rise to match that of imported oil. This part of the plan the President can do on his own authority. The second part, however, which calls for a heavy tax on domestic oil i thus depriving oil companies lof the huge windfall profits 'that would come from the ' price rise has to be approved by Congress where the oil lobby is already geariing up for a fight.

The President said that Congress must approve the tax on excess profits when price controls started coming off in June to prevent a “rip-off” by the oil industry. He said that some oil companies “are already telling us we should just turn all the money over to them —every last dime.”

The excess profits tax would be used to develop alternative energy sources to oil and to lessen United States dependence on imported oil. The battle between Mr Carter and the powerful oil lobby could become an important aspect of the President’s expected bid for a second White House term if Congress has not approved the tax before the primary Presidential campaign begins in February.