PETROL RATIONING

Otago Daily Times, Issue 24448, 6 November 1940, Page 8

PETROL RATIONING

REQUEST BY MOTOR TRADE RESTORATION OF JULY LEVEL EFFECT ON DOLLAR EXCHANGE ' (Per United Press Association) WELLINGTON, Nov. 5. The following statement was issued to-day by the New Zealand Motor Trade Federation:— “On October 24, wnen the Prime Minister was speaking at the annual dinner of the Canterbury Chamber of Commerce, he dealt with the question of petrol rationing, and stated his agreement that there is room for a difference of opinion about this very vital issue. He went on to say that when he was in England the then Chancellor of the Exchequer, Sir John Simon, indicated that the United Kingdom Government was not favourably impressed by the action of this Dominion m completely relaxing the petrol restrictions in December and January last. The Prime Minister stated that the British Government would not dream of laying down details of the rationing scheme to be adopted in New Zealand. He then went on U> make the most important statement that the last and most drastic cut in the ration had been made after full consideration of New Zealand’s own defence position, and for this reason the Government had to establish a certain reserve for the use of the armed forces.

The Dollar Situation "The New Zealand Motor Trade Federation has never advocated a discontinuance of the rationing scheme, but aja easement of it, and has consistently favoured the establishment of adequate reserves. Representatives of the trade agreed on July I that a case had been made for the establishment of such reserves, and now that the stock position is satisfactory and the reserves are adequate the motor trade and motorists are entitled to expect that the July cut will oe restored. But we find that yesterday in Auckland Nash stated that he has no knowledge of the matter, and he thinks it very unlikely that the Government was contemplating an early restoration of the octroi ration to the figure prevailing before the July cut. He goes on to say there would have to be a change in the dollar situation before that could happen. “Then Mr Nash makes one of his typically confusing statement —‘ It was still a fact, however, that every dollar used to buy petrol for civil consumption was a dollar less for the purchase of munitions by the United Kingdom.’ It is time Mr Nash came out into the open and told the people of the Dominion exactly what proportion of the money spent by New Zealand in purchasing petrol is ultimately converted into dollar exchange. The Department of Economics of Canterbury University College, in. consultation witn the Canterbury Chamber of Commerce, in its October bulletin, deals concisely with this question. The conclusion arrived at in that survey is that each £1 spent on petrol in New Zealand involves a reduction m the Empire dollar or foreign exchange holdings amounting to less than two shillings sterling.

Questions for Mr Nash “It is reported that Mr Nash will hold a public meeting in the Auckland Town Hall on the evening of Wednesday. The Motor Trade Federation invites him to make a clear and concise statement as to the amount of dollar exchange necessary to give the motoring public of New Zealand the additional 1,000,000 gallons a month which the Motor Trade Federation thinks necessary to preserve stabilisation in the motor industry. At the same time, Mr Nash might state why New Zealand is being rationed more severely in petrol than any other British dominion or any Crown colony. “Further, will Mr Nash deny that an assurance was given by a responsible officer of the Government to represervatives of the motor trade that when the stock position reached a satisfactory figure the July cut would be restored, and that such assurance had no reference whatever to the dollar position? ”, .