PETROL PROFITS.

Manawatu Standard, Volume L, Issue 222, 15 August 1930, Page 6

PETROL PROFITS.

ARE THEY EXCESSIA T E?

GOVERNMENT INVESTIGATION. (By Telegraph— Special to Standard.) WELLINGTON, Aug. 14. One of the most interesting side issues of the discussion in Committee of the House of Representatives on the Customs tariff was that of allegedly excessive profits made by petrol importing companies and an announcement by the Prime Minister, Hon. G. W. Forbes, that this will be the subject of an official investigation. The petrol importing companies, said the Prime Minister, were carrying a penny of the increased duty. A question had been asked whether they could carry any more. “That question,” he continued, “has been put to the companies, who said that it is not their intention to carry more than the penny. A good many represntations had been made about the price of petrol and comparisons made with prices in other countries.”

Mr W. J. Jordan: Will they still continue to carry the penny if we reduce the tax by twopence? The Prime Minister: There is no guarantee whatever in regard to what they will do. They did not see their way to carry any more, but 1 think it would he wise for them to continue to carry the penny. Mr Forbes went on to say that there had been a good deal of complaint about the abnormal profits made from petrol. Personally he could not say very .much on the subject, because he was not in possession of the documents, but his attention had been called to the difference between the prices in New Zealand and those charged in America and other countries where it was produced. “I think,” he said, “we should have more full information than we have at present and I intend to have an investigation made in regard to those prices during the recess to see whether the charge made, that the companies are making undue profits, can be borne out by the facts. Only by a thorough investigation into the costs in America and other production points can this be done. The country will bo very interested to know and it will settle a very vexed question.” Mr It. McKee:; : Twopence will, give you £300,000 and will leave vou short of £16,000. The Prime Minister: So far as the £16,000 is concerned we might have to make some adjustment in regard to other measures of taxation. Our budgeting has been very close, but we might be able to make some additional taxation in those proposals yet to be submitted to the House, by which we can make up the £16,000.