PETROL RATIONING

Manawatu Standard, Volume LX, Issue 265, 7 October 1940, Page 4

PETROL RATIONING

THE-CONSUMERS’ CASE. SUBMISSIONS TO PARLIAMENT. The North and South Islp-d Unions have submitted to the Prime Minister (Rt. Hon. P. Eruucr; anu members of the House of Representatives a statement on the subject of petrol rationing, in which numerous phases of the subject were dealt with, and it was urged that the monthly consumption be increased by 1,200,000 gallons, thus bringing the total annual usage to 80,000,000 gallons. The statement set out the following:—The Automobile Associations, through the North and South Island Motor Unions, in conference at Auckland and at Christchurch, decided to ask for your support in obtaining an increase in the present petrol allowances and build their case on two foundation facts which, in the light of information available and known to all, are indisputable. They are: (1) There is no shortage of petrol, ‘and (2). there are ample tankers available to transport to New Zealand sufficient of this commodity to meet iall the petrol this country requires. World petrol supplies to-dav exceed the demand, and the position is such that certain oil interests in the United States have been compelled to reduce their output to the extent that the output from certain wells is as low as 10 per cent, of normal production. The supply being now in excess of the world demand for petrol, the same position of supply and demand pertains to tankers, of which statistics show Britain has now a greater tonnage available to her than at the commencement of the present war. The latest London oil trade bulletins show a great improvement in the petrol reserves and 100 per cent, increase in tanker tonnage since Sej)tember, 1939. Bearing these two foundation facts in mind we set out hereunder the trend of events in New Zealand and the position as it stands today. . , Prior to the Government’s decision to reduce {he consumption of petrol and enforce a scheme of rationing the annual quantity used in this country was approximately 100,000,000 gallons per annum which, under the petrol rationing scheme, was to be reduced to 72,000,000 gallons per annum, or 6.000,000 gallons per month, but in July and August the actual consumption was well below this figure. It will be seen that the reduction aimed at, i.e., from 100 to 72 millions, represents a conservation of approximately 30 per cent., but private motorists have actualiv suffered a reduction of 50 per cent. On the outbreak of war private motorists were allowed 8 gallons per month tor cars up to 14.5 li.p. and 12 gallons x>er month for cars in excess of 14.5 h.p. These allowances were later amended to provide a more equitable mileage in relation to horsepower, and from 3 line 1 (the commencement of the new licensing period) the allowances were as follow: Up to 9.5 h.p., 6 gallons per month; 9.5 li.p.-14.5 li.n., 9 gallons per month; over 14.5 h'p., 12 gallons per month. On July 1, only one month after the Government had (without warning motorists that petrol rationing would be more severe) collected the annual license fees, the above allowances were reduced to the following: Up to 9.5 h.p., 4 gallons per month; 9.5 h.p.14.5 h.p., C gallons per month.; over 14.5 li.p., 8 gallons per month. Private motorists are now receiving a, quantity which restricts the. use of their vehicles to less .than 40 miles .per week. The mileage computed on the most favourable performance of'the respective vehicles in the various classes stands at 1900 per annum. A COMPARISON.

The following table gives a comparison with the allowances i.n Great Britain and Australia. The figures shown in respect of Australia, however, did not come into iorce until October 1. Australia has had. one year of war without any restrictions whatever. -—N.Z.

The total quantity of stock in New Zealand on the present rate of restricted consumption should be sufficient, without any further importations, for probably more than six months, but there is no reason to suppose that oil companies would not continue their normal importations. Despite this fact the Government has not reinstated the “lost coupon,” nor will it state when the private owner is to be given a reasonable use of bis vehicle, in the event of a national emergency the Government lias ample power instantly and completely to prohibit the use of petrol for other than essential emergency purposes. Canada’s loyalty and outstanding achievements in her wiu-the-war efforts are repeatedly rclerred to by the British Prime. Minister and the most prominent public men of England, and this is Canada’s view of the internal economics in the use of petrol as expressed in the following excerpts from a studied and comprehensive article published in a widely read Canadian journal: “Violently rocking the ship of State at this time might have nationally tragic and possibly calamitous consequences. The result would he mitigated not at all if the rocking were done with the best of motives. Because Canada imported last year petroleum and petroleum products to the value of 55 million dollars, it has been suggested Canada should ration gasoline. Gasoline is, of course, only one derivative of petroleum. Lubricants are another, and without lubricants practically all manufacturing and power production, practically all I transportation, distribution, in short, [ the production and exchange of real wealth, would cease. The only warrant then for the suggested rationing of gasoline in Canada is the conservation of part of United States funds for im- ! ports amounting to very considerably less than 55 million dollars per annum. What cost this saving? More than two dollars in lost taxes for every dollar saved would be part of the cost. Not only would rigorous rationing of gasoline cost Canada enormously more than it would save, but, what is,much worse,-it would violently rock the ship of Statu. Doubtless the Nazis, fascists, Communists and Quislings m Canada would be delighted if the federal Government were induced to place an embargo on the importation of petroleum and petroleum products, tor such an action would effectively scuttle Canada.” .' The above, contrasted with the New Zealand Government’s views and actions relatiug to petrol usage, shovv s that in reducing consumption by 00,000.000 gallons per annum they save slightly Jess than £750,000 (sterling) per annum, and they lose in petrol taxation at Is 2.7 d per gallon £1,8.3/,500 and place in jeopardy the liveli-

hood of 33,000 New Zealanders employed in the motor and petrol industry alone. It also shows a heavy potential loss of taxation revenue, national and social security, as the result of the seriously depressed condition enforced upon the motor industry. while many other callings and industries are directly and indirectly seriously affected in their earning capacity. LOYALTY TO WAR EFEORT.

The Automobile Associations of New Zealand without exception individually and also through the North and South Island Motor Unions have demonstrated their co-operative attitude and loyalty to the New Zealand Government in its war activities, tlic statement added. On August 29. 1939, at a meeting of representatives held in Palmerston North, it was resolved freely and wihinglv 1° place at the disposal of the 'New Zealand Government, if required for emergenev purposes, the entire organisation of both the North Island and the South Island Motor Unions, and the transport and services controlled by their member associations. The Automobile Associations are subscribing to purchase two fully equipped military ambulances for presentation to the New Zealand Army authorities in addition to a considerable aggregate amount donated to New Zealand patriotic funds, and they will continue, as one of the largest organised bodies of New Zealand citizens, to support the Government and the war effort to achieve victory. But there is a national feeling of unrest and dissatisfaction in the methods adopted by the Government in regard to the conservation of petrol, more particularly as greater hardships, inconvenience and loss have been imposed on the citizens of New Zealand than by Groat Britain herself at the very seat of war or l>v any British Dominion or Crown Colony.

The very pointed question is therefore asked of the Government: “What is their explanation?” Is it an essential war necessity? Is it caused by the overseas financial predicament of the Government?, or is it their ordinary avowed policy ?

What the petrol consumers ask for is that the monthly consumption be increased by 1,200,000 gallons, thus bringing the total annual usage to 80.000,000 gallons. Whilst the New Zealand Government originally fired a total consumption figure of i 2,000,000 gallons per annum, it has been piogressively reduced in July to 66,000000 gallons per annum. It is suggested'to the Government that, by luting consumption to 80,000,000 gallons, the reduced saving in exchange to New Zealand will be approximately £4(J<L--000 per annum instead of Llotl.UUb per annum, but the increased gallonage will produce in petrol tax at is 2.7 d per gallon, an increase of internal revenue of £857,500. T The statement is signed bv Mr J. H. Edmundsou, president of the Norm Island Motor Union and Mr M . RCarey, president of the South. Island Motor’ Union.

SugGt. Aus. cut gest!. d UrjiHa- allowaln. lia. ance ance Cluss. gals gals, gals gals Motor cycles .. — 10 2 4 Up to 7 h.p. 4 10 4 8 „ 8 „ 5 10 4 8 „ 9 5 11 4 8 ,, 10 „ 6 11 6 8 „ 12 „ 6 13 6 12 14 „ 7 14 6 12 „ 15 „ 7 16 8 16 „ 19 „ 8 lfr 8 16 „ 20 „ 10 16 8 16 50 „ 10 19 8 16 Over 30 li.p. 10 23 8 16