PETROL PRICES.

King Country Chronicle, Volume XXXI, Issue 4953, 9 February 1937, Page 3

PETROL PRICES.

STATE SCHEME OUTLINED. The intention of the Government to simplify the scheme for the fixation of petrol prices throughout the Dominion by defining larger areas was indicated by the Minister of Industries and Commerce, the Hon. D. G. Sullivan, when speaking to a Blenheim deputation on Thursday (states The Press). The Minister was asked by Blenheim garage proprietors to take some action to fix prices in their area, where, they stated, there was an average of 14% motor vehicles to every petrol bowser. Mr. Sullivan said that it had been found that fixation of prices could be better administered and investigated by simplification of the scheme. It ought to be obvious to anybody considering the position that in the first place the petrol-service business in the Dominion had been greatly overdone. The number of people who had been trying to get a living out of the business was out of all proportion to the amount of service to be given to the public. The result had been that the revenue was so divided that in many cases it was impossible for those in the business to secure a living. It was because of that that the Government had decided to l'cense the industry, so that it would not be possible in future for people to come into the business without first obtaining a license from the Bureau of Industry, the Minister said. They would first have to make out a reasonable case to show that their service was necessary. In doing this, the Government had not desired to create any monopoly. The Government wanted the service to be divided equitably —it did not want the stupid and unreasonable duplication that existed previously. The Government was dealing with the situation at the moment, and was not contemplating proceeding along different lines. Instead of having a number of small areas with a wide differentiation in prices, there would be ah attempt to divide the whole country into about four big areas to simplify business and allow more expeditious handling. It would also assist in preventing anomalies between districts where there had to be some differentiation. The Government had fixed prices with the idea of stabilising them, but in all cases had insisted that re-sellers establish what they considered a reasonable price. Then the Government would consider stabilising the price as soon as possible. He would have an officer sent to Marlborough to investigate the position there and in the Nelson district.