No Flat Rate Charge For Petrol In N.Z.

Northern Advocate, 28 August 1947, Page 6

No Flat Rate Charge For Petrol In N.Z.

(From Our Political Correspondent) WELLINGTON, This Day

MR S. W. SMITH (0 —Hobson) has failed to induce the Minister of Supply to impose a flat rate charge for petrol throughout New Zealand. The Minister stated in the House of Representatives yesterday that prices were fixed to take into account lelative costs of transport as between various locations.

The provision of a flat rate would benefit those places remote from ocean terminals at the expense of the areas close to ports of discharge, where costs of distribution are at a minimum-

The hope that the Minister would have the inquiry made at an early date was expressed by Mr Smith, commenting on the Minister’s reply. The investigation might result in rectifying some of the anomalies in petrol prices. The 1942 schedule provided for differential rates of from id to 6d a gallon, according to the territory. “The area I represent has an extra 3d a gallon, which is a 10 per cent, increase over the cost at the port of discharge,” he said. When the differential went up to 6d, the percentage rose to 20, and it seemed that nothing could justify that amount of extra charge.

While it would appear that each district should bear as nearly as possible the cost of distribution in the area concerned, there might be a case for a reduction in some instances, and the Minister undertook to have an investigation made in that direction.

“Country people think it would be fairer to equalise the charge throughout the country,” said Mr Smith. "That might mean a slight increase in the towns, but it would right an injustice to the people in the back country.”