POLICY CRITICISED.

Manawatu Standard, Volume LX, Issue 216, 10 August 1940, Page 9

POLICY CRITICISED.

REVISION URGED.

PRESERVING BEST INTERESTS. That evidence is growing of -the urgent need for an immediate revision of the Government’s policy with regard to rationing of petrol, was stated yesterday by the New Zealand Motor Trade Federation, which is the parent body representing every phase of the motor industry in New Zealand. While fully appreciating that the war requires maximum effort and sacrifice on the part of every citizen of this Dominion, the federation has been and is of the opinion that to reduce petrol consumption in New Zealand below the level necessary to maintain essential services and permit of reasonable private and public transport facilities is not in the best interests of New Zealand, Great Britain or the Empire. It was for the purpose of stating this viewpoint that the Motor Trade. Federation sought an interview with Hon. W. Nash, Minister of Finance, in the hope that they would be able to impress upon the Government the serious effect of its petrol rationing policy as applying to the public, the motor and garage trade, petrol and other allied industries, also to the employees of those industries. Thousands of motor trade employees have already lost their means of livelihood and there is prospect of still further unemployment as the gathering effects of too severe petrol restrictions become more evident.

It was also thought that Cabinel might be persuaded to give the motoring public and the motor trade oi New Zealand some better understand-

ing of its future plan relating to petrol supplies, with the object of dispelling the state of uncertainty and lack of confidence which now exists. It was felt that a clear and concise statement of the extent to which, petrol might bo available in future months would he of immeasurable benefit in preventing or stemming tho present gradual disintegration of the motor industries’ skilled and trained staffs.

Evidence was produced to show that the motor trade is the second largest industry in New Zealand, employing in normal times more than 40,000 people, most of whom are adult workers, and that any curtailment of its activities must inevitably result in serious loss of employment and a lower standard of living for its vast army of workers. Further, it is estimated that in the past few years the industry as a whole has produced and paid between 20 and 25 per cent, of total Government revenue, and it must be recognised that if the present drastic petrol rationing scheme continues, there will be a serious shrinkage in this contribution t* national finance, with consequent reduction in the amount available to the Government for defence purposes. It was further made clear beyond doubt that petrol restrictions, and in particular the uncertainty regarding future supplies, have caused such a serious drop in business in the motor industry as to threaten the very existence of many sections of it. The consequent disruption to the social and economic life of the community will also reduce the war effort to a far greater extent than any possible gain there might be from the smaller quantity of petrol consumed. It is difficult to escape the- conclusion that the people of New Zealand have been called upon to bear far greater sacrifice in respect of petrol restriction than is necessary or desirable. RECIPROCAL TRADING. The Minister’s attention was also drawn to the recent appeals made by the British Government to manufacturers in Great. Britain to maintain and even increase their exports to assist in keeping Great Britain’s war effort at the maximum. If Britain is to preserve her financial stability throughout a long war, she must continue to export goods to pay for those imports which are essential to war; and if she is to buy New Zealand’s butter, cheese, meat and wool, it can be done only by making it possible, in turn, for New Zealand to buy manufactured articles from her. New Zealand’s policy of petrol restriction created a condition which made it impossible for this Dominion to assist Great Britain to implement her policy of maintaining exports at tlie maximum figure. The deputation said that the motor industry fully appreciated the need to conserve petrol tor war purposes and that indeed it had used every endeavour to eliminate all unnecessary usage. There was a point, however, where the restriction of petrol would defeat its own ends as a contribution to war. If it were imposed to such an extent tbat it resulted in a partial wrecking of the second largest industry in New Zealand, created widespread unemployment in New Zealand, and prevented support of Britain’s war policy, then it could scarcelv be defended as a worthwhile sacrifice imposed solely for the purpose of prosecuting the war. Tho deputation stated that after very closely reviewing the whole subject, it was of the opinion that the Government should ease the petrol restrictions to the extent of not less than a further ono million gallons per month and at the same time give an assurance to the public through tho Press or by public statement that it would use iis best endeavours to maintain that petrol allowance. Only in this way could the grievous harm that has been done to the motor industry and to other industries dependent upon it be partially rectified. It was also stated that according to information available to tho federation there is no shortage of petrol in the world to-day nor any general lack of shipping to carry it. In making this information available to the public, the Motor Trade Federation desires to emphasise that the motor trade of New Zealand does not disagree with the Government regarding the need to make the greatest possible sacrifices to maintain the Dominion’s war effort at its . highest pitch. However, where the opinion of the industry diverges from that of the Government is that the Government’s present policy is not conducive to the greatest war effort. The federation claims that the repercussions which the Government’s policy must bring in its train will slow down the preparation for war in far greater degree than any value that could possibly accrue from the quantity of petrol saved. It is the federation’s emphatic view that over-restriction of petrol in New Zealand is not a contribution to the Empire’s war effort and that, taking the long view, the economic consequences of over-restriction will hamper rather than assist it.

A study of the facts must convince any impartial observer that the Government’s handling of the petrol situation over the past 11 months has been hasty and ill-advised, the federation adds. Change has followed change with bewildering rapidity and with little apparent thought for the disturbance and inconvenience caused the motoring public. During the period since the first introduction of petrol restrictions, repeated attempts have been made by the federation to obtain from the Government a concise and clear statement of its real desire and intention with regard to petrol—but with no result. Surely it is time that the Government made a declaration of its future policy.