Backward step for industry?

Press, 15 October 1981, Page 18

Backward step for industry?

Amendments to the Motor Spirits Distribution Act could bring about changes that would turn the clock back 50 years for the retail motor industry, take away the independence of petrol resellers and hand control over to the oil companies, said Mr G. B. Johns, national president of the Motor Trade Association when addressing the industry's annual conference in Whangarei this week. Mr Johns said petrol resellers understood the Gov-! ernment's anxiety to achieve set targets for converting a large portion of New Zealand’s vehicles to alternative fuels. Many had already made large investments in storage and dispensing equipment for L.P.G. and C.N.G.

Opening the door so that oil companies could be allowed to inject large amounts of capital into selected service stations to finance compressed natural gas dispensing and storage facilities, was the first move towards breaking down the “hands off” situation that had been a feature under which ■ the wholesale oil companies j had traded for years, he said. ; The association did not i believe that this situation ■ should change, neither did it j believe that it would benefit■ either the service stations or i the general public. The association was also aware | that the oil companies as a ; group were not unanimous in ; wanting the act amended, said Mr Johns. He said the trade regarded ; amendments to the reguia- j tions as an emergency i measure brought down in a I time of crisis and if any misuse of these concessions occurred petrol resellers would demand that they be withdrawn.