SALE OF PETROL

Evening Post, Volume CXVI, Issue 135, 5 December 1933, Page 11

SALE OF PETROL

, FIXATION OF PRICES i t - REPORT TO HOUSE j PETITION SUPPORTED The enactment of legislation for the » control of petrol prices in.New Zealand j| was the main recommendation, of the Industries and Commerce Committee, which reported favourably to the House of Bepresentatives .this;afternoon on the petition of Associated Motorists [ Petrol Co., Ltd., the South Island . Motor Union, Incorporated, and the I New Zealand Farmers' Union, Ineor- - poratcd, asking that legislation be ' enacted to provide for the fixation of prices of petrol so as to prevent unfair | competition or for any other action that ' might be advisable in the public interest. : The committee reported:— (1) That the recent progressive fall > in prices was dtio to the combination of the major oil companies with the object of crushing the Associated Motorists Petrol Co., Ltd. (2) That present selling prices are uneconomic and are likely to result in destroying competition amongst ■ sellors, thus bringing about 1 monopolies. , , (3) That such monopolies will pro- ' bably result in substantially increasing the price to consumers. (4) That in the public interest the petition'should be referred to the Government for immediate and most favourable consideration, with the recommendation that special legislation should be enacted to control selling prices, or in the alternative the powers provided under the Board of Trade Act bo invoked for that purpose. Mr. J. A. Lee (Labour, Grey Lynn) said that this was another example of liow New Zealand w,as being run by external combines. Once tho price was undermined, then petrol would go up again. He trusted .that tho recommendation of-the committee ■would lead to some action and that party considerations would--not--be allowed to interfere. . ;''"' Mr. A. M." Samuel (Independent,: Thames) said it had been said that 'if tho petrol war was won by the trust the people of the country would have to pay for the whole of the cost of the war. Tho Government had a tremendous responsibility in the- matteiv Tho associated motorists combined for tho purpose of obtaining a cheaper petrol, and the foreign companies immediately decided to squeeze them out.l The trust had deliberately lowered its prices despite the fact that the world parity price of motor spirits had increased. Tho question was of such importance to tho public that the Government should fix a minimum selling price and, perhaps, a maximum price as, well. As things wei'<i at present the petrol trust could put out of business anybody who competed with it. - Captain H, M. Bushworth (Country Party, Bay of Islands) said the object of forming Associated Motorists was to protect the motorists against tho combine and to bring the price of petrol to a lower level. The petrol war which had.developed had,been expected, and in the event of the price being reduced below an economic level the Associated TMotorists were prepared to shut up shop. He suggested there were alternatives to the fixation of prices, and theso might bo considered by the Government, . •' . Mr. Fi Jones (Labour, Dunedin South) said the Committee's report went to show that they wore making progress towards the fixation of prices. (Proceeding.) '