PETROL RATIONING

Evening Post, Volume CXXX, Issue 52, 29 August 1940, Page 13

PETROL RATIONING

[WHAT IS IT FOR?

MANY POINTS RAISED

CONCERN OF MOTOR

TRADE

ALLEGATION OF UNFAIR

TREATMENT

The reasons advanced by the Government for introducing petrol rationing in New Zealand were challenged by Mr. C, R. Edmond, president of the New Zealand Motor Trade Federation, at the annual meeting last night of the Wellington Motor Trade Association. Stress had been laid on the imperative need to build up adequate reserves of petrol in the Dominion, he said, but since rationing began total stocks in the country had fallen. The Government's contention that rationing was necessary as a war measure aimed at conserving dollar exchange was equally untenable. Because the Dutch East. Indies, from which New Zealand normally drew 69 per cent, of her petrol supplies, had joined the sterling bloc the question of dollar exchange was no longer relevant. Mr. Edxnond said there was plenty of petrol available to supply New Zealand's full requirements^ and also.plenty of tankers to bring it to this country. Obviously the supply of petrol was purely a.question of money, and the restrictions had, therefore been introduced to conserve sterling exchange. This being so, Mr. Edmond further claimed.that the motor trade had, in the allocation of sterling exchange, been unfairly treated compared with certain other businesses. To give motorists sufficient additional petrol to enable the trade to carry on would involve such a small amount Of, exchange that one wondered it there-were not some other motive tor. the Government's action. Mr. Edmond said that if existing restrictions were not relaxed serious unemployment would be caused. After Mr. Edmonds address the following resolution was carried unanimously: — ••■••■■ That this representative annual meeting of the Wellington Motor Trade Association strongly supports ■.& New Zealand Motor Trade Federation in its campaign for the imSediate easing of petrol restrictions S) by restoration of the last coupon cuf* Cb) by easing the" cuts on commercial ixsers, and CO by» the monthly quota from 6,000,000 gallons to 7,000,000 gallons. "We have had twelve months of war and ten months of petrol restrict in -various forms,",-.said Mr. Esmond "This'is the only British dominion that has: had any rationing of petrol since, ffil^fwrnitnenced.-. We have been inquiring' whether the sacrifices we. ha^e been/called upon to make have 1 first with import control, which he said was one of the two mam sections of the problem, Mr. Edmond. stated that on July 23 the New Zealand Motor .Trade Federation waited on the Minister of Customs (the Hon. W Nash) to ask if he would make a statement regarding the exchange position in regard to the importation^ of motor vehicles. At the same time •netrol restrictions were discussed with Mr Nash, then Acting Minister of Supply. No reply had yet been received from the Minister. Imported motor vehicles had to be ordered six to eight months ahead, and unless the Minister would announce his decision soon the trade would have difficulty m the early part of next year. "ENGLAND WANTS US TO BUY» "England still wants us to buy her motor vehicles and we can help the British war effort by purchasing her goods, but the problem is that we have to pay for them," he said. During the five months up to the end of May imports for the motor industry decreased by £2,332,510 compared with the corresponding period of the previous year —a rate of £5,500,000 a year. Imports of :motor spirit during the same period decreased by 17,000,000 gallons, which represented an innual decrease of 41,000,000 gallons—about 40 per cent. A very different position was disclosed regarding certain other classes of goods. For instance, during the five months period the value of beverages (ales, stout and ciders, whisky, wine, cocoa, tea, etc.) increased from £667,000 to £891,000. Paper imports increased by £76,000. Sugar increased by £259,000, from £254,000 to £514,000. .Those figures indicated the .way the motor business had gone compared with other trades, and that the motor business was not getting its fair share of sterling. Total imports over the five months period amounted to £20,000,000 (N.Z.), which would average £48,000,000 for the year. "The country will have to face the question of taxation with regard to the motor industry," said Mr. Edmond. "Last year the industry paid £10,000,000 in taxation. That is not going to be available this year. The man in the street will have to find that money. It will not come out of business because business is not making any money. It will have to come out of the pocket of the man in the street. Then there is the question of employment." The three assembly plants last year employed 1506 hands; today the number is 598. In a month or six •weeks, unless the petrol restrictions are eased, they won't be employing 200 hands. To date the motor industry is estimated to have dispensed with 20,000 hands. "We have supplied a number of mechanics for aircraft who are today making a big contribution to the war effort. When the war is over the garages must give -these men their jobs back; but unless the industry is sustained now they won't be able to." NOT TOLD THE WHOLE STORY. - • "Now with regard to petrol restrictions. For ten months we gave the Government co-operation. We treated restriction of petrol as part of the war effort, and as loyal citizens we said 'Right-o.' But we feel now we were not told the whole story. Mr. Nash said recently that we would have had petrol restrictions this year war or no war because of the sterling situation. It has* taken the Government nearly twelve months to tell us that." After briefly reviewing the history of petrol restriction in New Zealand, Mr. Edmond said that on July 1 the Government took one of the coupons away, and that, combined with the reduction on commercial licences, was the last straw that broke the camel's fc>ack. "In September, 1939, there were substantial stocks of petrol in this Dominion." he went on. "By May. 1940.

after nine months of rationing—nine months •of conservation —those stocks were reduced by a substantial amount. All our efforts had been in vain regarding the stock position. That was the natural sequence of events because the stocks in the country depend upon the extent of importations by the oil companies. The oil companies are tradL concerns, the bulk of them, foreign, and they all adjusted their stocks to the volume of sales. Sales dropped and stocks dropped. "The stock position is an indictment of the Government. When the motorist was penalised they should have seen that stocks were built up." Mr Edmond said that, in Australia today there was no rationing scheme at all as New Zealand knew it. They allowed 10 gallons for a small car and the motor trade in this country would be quite satisfied with that. Australia was not short of stock because there was no world shortage of petrol. There was, in fact, too much, because America could hardly store it. There was also plenty in the Dutch East Indies and plenty of tankers to transport.it. l Quoting the Government's slogan, "Every gallon of petrol saved means so many dollars to buy war munitions,' Mr. Edmond said that position had changed. The Dutch East Indies had joined th£ sterling bloc and the question of dollar exchange no longer entered into the question. He supported this statement with a quotation from the Sydney "Sun," which stated that "Australia should be able to pay. for its supplies of aviation petrol from the Netherlands East Indies in sterling . . . and payment on this basis would not impose the huge drain on non-sterling resources that would exist if payment were made directly in dollars." WAR EFFORT FIRST. "I have boiled the position down to one particular problem of money and the availability of sterling exchange, said Mr. Edmond. "We admit that the war effort must take precedence over everything. We are loyal and will'do our best to further the war effort. But we are of the opinion that we are entitled to a just share of the sterling exchange available, and when we realise that some industries can get some extra sterling this year we feel we are getting a raw deal. . "This year the allocation of sterling for the importation of whisky during the five months up to the end of May has been increased over last year from £143,000 to £164,000, while we imported £2,000,000 less' In motor-cars and 17,000,000 gallons less motor spirit. It is not fair that these other industries should be getting more than their share. "In Christchurch the other day Mr. Semple made a startling statement. He said the petrol question was something over which the Government had no control in so far as it was governed by what tankers were available after supplies needed on the other side of the world .. .- had been served. I would suggest that Mr. .Semple knows better than . that. The Government has full control over the.petrol situation in New Zealand because, it can't be imported until the sterling is put up. There is •no shortage of petrol or tankers." Mr. Edmond . quoted the following statement by Mr. C. L. Carr, M.P., in reply to a deputation of garage proprietors, petrol-resellers, etc., who waited on him in Timaru: "I must confess to complete ignorance as to the actual motives which caused the Government to act when it did and as severely as it did. No doubt it was actuated by the need of conserving supplies for the national safety and for war purposes, and there was also the matter of the dollar exchange, which, I believe, does not apply to the same extent now." "That is a frank, statement from a member of Parliament," said Mr. Edmond. POSITION IN ENGLAND. Comparing rationing in this country with rationing in England, Mr. Edmond said-the basic allowance in England today was greater than the basic allov*ance in New Zealand. In England it was 2400 miles a, year.. If any part of the Empire required restriction surely it should be England. Explaining the British Government's policy towards the private motorist in July, Mr. Geoffrey Lynd, secretary of the Petroleum Department, stated in the House of Commons that "Britain. was now assured that there were satisfactory stocks of petrol in the country, and there were sound reasons for continuing the use of cars. Motorists need not hesitate to use their basic rations for recreative purposes." The Government's petrol saving campaign in New Zealand implied that it was disloyal to use basic rations for recreation. Mr. Edmond then enumerated what he considered to be the industry's needs, and his recommendations were embodied in the resolution mentioned above. He said that the restriction on commercial users was seriously interfering with business, as was indicated by the fact that 50 Weillington taxis were at present off the road because their allowance was used up. • The industry also asked for 7,000,000 gallons a month, and they believed it would be possible to carry on with that amount. "The amount of money is so small, relatively speaking, that we cannot understand the Government's not doing it," he said. "It would only mean £400,000 to give us this extra amount. The position is serious, particularly for small petrol resellers throughout the Dominion. They cannot stand the siege and will go out unless something is done and done early. . "The motor industry today is being ruined by ignorance or by design. I do not know why the Government has sorted out the motor industry and treated it as it has done during the past year. I do not know whether it is a desire to get rid of private industry. We must state very definitely to the Government that we are not getting a fair deal, and that we want an immediate review of the situation."