PETROL SHORTAGE IN AUSTRALIA IS REACHING A CRISIS

Otago Daily Times, Issue 27212, 15 October 1949, Page 7

PETROL SHORTAGE IN AUSTRALIA IS REACHING A CRISIS

NZPA—Copyright

SYDNEY, Oct. 14,

The acute shortage of petrol due to overselling during the five months of the “free” market is reaching a crisis stage throughout Australia. Mr James McGirr, Premier of New South Wales, said in the State Legislative Assembly that he would consider asking the Federal Government to release petrol supplies to New South Wales to avoid having to bring some industries to a standstill. 1 In the House of Representatives in Canberra Mr H. L. Anthony (Country Party) demanded that the Government should release some of the 50,000,000 gallons of petrol being held as a defence reserve. Speaking on the motion for the adjournment <ff the House, Mr Anthony said that the release of the stocks would ease the crisis. The Government would have something to answer for if it had deliberately brought about such a situation to justify its attitude on petrol rationing. ■ “ There is a period of a month before petrol rationing begins on November 15,” he added. “Are we to allow Australia to get into a condition of chaos because the Government will not allow more petrol to be imported and will not release its hoarded stocks? Whom are we defending ourselves against in the next two or three months? Why cannot the Government give the oil companies permission to import enough petrol to meet the situation until rationing is reintroduced? ”

The Minister of Post-war Reconstruction, Mr J. J. Dedman, said that it was clear the Commonwealth was not responsible for the situation. When rationing was abolished by the High Court’s decision the Government issued licences for the importation of 440,000,000 gallons for the year ending May 31, 1950. This was based on consumption at the same level as during rationing, plus an additional 50,000,000 gallons for defence stocks. The heads of all the oil companies had promised the Prime Minister that they would do their utmost to see that petrol consumption between the abolition of rationing and the taking up of the matter by the States would not be greater than during the rationing period. During June, July and August the companies oversold 22,000,000 gallons after making allowance for 5.250,000 gallons used during the coal strike. An authoritative source said that the petrol reserves for defence were 50,000,000 gallons, and that the Government’s military advisers had recommended against any depletion. Reports from elsewhere in Australia indicated that, although, as the foremost manufacturing State, New South Wales is the hardest hit, the situation is serious thrbughout Australia. Garages in Goulburn sold their last petrol to-day, and those in most country towns will have exhausted supplies within a week. Motor traffic on the main arterial roads is noticeably diminishing, and small transport services have suspended or curtailed their operations. Building construction, brick, tile, and glass manufacture, taxi services, and milk and bread deliveries are all under immediate threat.