HYDROCARBON OILS

Inangahua Times, 18 July 1933, Page 3

HYDROCARBON OILS

4d GALLON PREFERENCE (United Press Assn—By Electric Telegraph—C opyright.) Rugby, July 17 Mr Ramsay MacDonald announced

Mr Kamsay MacDonald announced in the House of Commons that legislation will be introduced in the autumn session to give effect tu a proposal which the Government believed would ensure an immrdia e advance in the manufsctuie of home-produced motor spirit The proposal would take the form of a guaranteed preference of fourpence

per gallon in respect of light hydrocarbon oils manufactured in this country from indigenous coal, shale or peat. This guarantee would be for ten years from April IstnxL This would be subject to an rangement to vary the period ot the guarantee regarding the ac uilpre' ference, namely, the difference between the customs duty and the excise, if any excise du y should bi imposed. If the preference re«* mained at the present level, eightpence per gallon, the period of ‘he guarantee wonld be four and a h»lf years. If the preference were reduced to fourpence per gallon, the period of the guarantee would be nine years, and any intermediate rate of preference would vary the period of the guarantee prop tionaiely. Mr MacDonald a id that it was estimated that 7009 men would be directly employed, and a slightly less number indirectly. Under the plan in view, about 10 ',OOO tons, or 70,000 gallons of petrol would annually be produced, consuming 350,000 tons of coal, and giving employment to over one thousand miners. In addition, there would he employment in connection with the plant. The cost to the Treas** ury would be very small.