IMPORTING OIL

Evening Post, Volume CXII, Issue 7, 8 July 1931, Page 11

IMPORTING OIL

CUTTING THE COST

FARMERS' UNION PROPOSAL

' The question whether any action should bo taken in regard to the oil import business was discussed by the New Zealand Farmers' Union Conference lust evening. An Auckland remit suggested that the Government bo urged to take over tho-oil import business, cutsout the advertisements, and sell the benzine, etc., plus tax, at the lowest possible prices. 4 The Minister of Industries and Commerce (Hon. P. A. do la Perrelle) said that his Department was at present engaged in an investigation into tho matter of the importation and distribution of mineral oils, and particularly motor spirit, and a report would be submitted at a comparatively early date. Oa receipt of the report the Government would be in a position to decide what action, if any, was necessary oxpossible. Captain F. Colbeck v Auekland) said that refined oil could be purchased in California at 2Jd a gallon f.o.b. tanker, and if the Government took up tho oil business as a monopoly there was a profit of £5,000,000 a year in it. If California refused to sell the oil, oil could be purchased in Eussia. In Franco the Government had a monopoly of the tobacco trade. Mr. J. Livingston (Dannovirke) asked why the farmers did not help themselves. AVhy did not they try and pool their orders and import the oil? A delegate: "You cannot get out a tanker." • ' Mr. Livingston: "We can have a try, anyway/" Mr. S. N. Ziman (Auckland) said the British Admiralty was tho main ownor of the Anglo-Persian Oil Company, and made a large profit. There was a precedent for entering into the business. Mr. A. C. Cameron (Otago) said tho solution was in the hands of the farmers themselves; they could buy direct from tho refineries in California or Eussia, but there would be competition with America, whose organisation was very complete. In reference to Government action he asked, could the Government even run the railways properly? Mr. J. D. Hall (Cbristchurcli) suggested that tho matter* should be referred to tho Dominion executive, which, he thought,?should co-operate probably with the Automobile Association. Mr. A. M'Conaugky (Auckland) said the oil position was a national affair. If there was a war we would want oil as cheap as possible and have reserves. AYe did not want to be paying big profits to huge combines. After further discussion it was decided to refer the matter to the Dominion executive.