MR. NASH'S STATEMENT

Evening Post, Volume CXXX, Issue 53, 30 August 1940, Page 4

MR. NASH'S STATEMENT

RESTRICTIONS STAND

CONSERVING FUNDS

A plain indication that there is little immediate prospect of any relaxation of the petrol restrictions Avas given in the House of Representatives yesterday afternoon by the Minister of Finance (the Hon. W. Nash), in reply to an urgent question asked by Mr. A. E. Jul I (National, Waipawa).

; Mr. Jull asked the Government for . a definite statement concerning the possibility of easing the restrictions, s even to the extent of a million gallons ' a month, as requested by deputations [ to thfe Government from the industry [ itself. "Can the Minister state whether • the restriction of 25 per cent in the • quantity of motor spirits imported into ; this country for the first half of 1940, ; as compared with the same period in 1939, is due, firstly, to New Zealand's . inability to supply the necessary ; foreign exchange, or, secondly, to the ■ fact that the British Government conf siders that there is more urgent need ■ for its foreign exchange holdings than i to provide for the maintenance of our j 1939 level of importations?" asked Mr. ] Jull. He added that there was great uncertainty throughout New Zealand because of the absence of any reply to the many representations thereon. "Thousands of motor trade employees have already lost their means of livelihood," said Mr. Jull, "and there is prospect of still further unemployment." . MINISTER'S REPLY. Mr. Nash said that the question was really one. for the Minister of Supply, but there were points raised about exchange that could be answered. In the first place, the reason for the restrictions on the use of petrol in the Dominion was the imperative necessity for building up reserves for our own defence purposes. There was not a member who would object to the Government making sure that there were sufficient supplies of petrol available in the Dominion for use In an emergency. The second point, was the necessity for conserving dollar exchange from the United Kingdom's point of view. "Every charge we make against these dollar funds reduces the ability of the United Kingdom to buy munitions," said the Minister. Mr. Nash said that it had been suggested that because petrol could now be obtained from inside the sterling area, the Dutch East Indies, for instance, it might be possible to relax the restrictions. "On that point being raised," he continued, "I cabled immediately to London, and the reply received the next morning said that the United Kingdom still desired us to restrict, as the sterling areas as a whole had to find a very heavy sum in dollars for oil, and from this point of view the necessity for restriction was greater than ever owing to the increased purchases of munitions from the United States." The Minister said that there never had been any restriction on the imports of petrol, the only restriction being the use of it. Mr. S. G. Holland (National, Christchurch North): No one suggests that there should not be conservation. AH that they are asking is that the restrictions should be eased. Mr. Nash: There is no way that I know of increasing the use of petrol without it affecting the ability of the United Kingdom to buy munitions. Mr. Nash added that the Government would take steps to do all that it could for those associated with the motor indusry to ameliorate any hardship that might come to them through the defence situation.