VITAL NEEDS TO COME FIRST

Southland Times, Issue 24237, 21 September 1940, Page 6

VITAL NEEDS TO COME FIRST

Minister Discusses Petrol Rationing REVIEW ON OBTAINING DEFENCE STOCKS NO SURETY OF EARLY REPLENISHMENT (United Press Association) WELLINGTON, September 20. Since the outbreak of war the Government had given careful attention to the needs of an extensive industry, to the requirements of the essential transport services and also to the interests of private motorists, said the Minister of Finance (the Hon. W. Nash) today in reviewing the petrol situation. Everything possible had been done to secure an equitable scale of rationing. However, vital needs had to come first. New Zealand dared not take risks in establishing and maintaining adequate petrol supplies for defence emergency purposes. If her stocks of petrol got low we were not sure of replenishing them at a moment’s notice. Oil tankers were not waiting our beck and call and one should not forget the risk they ran of enemy action at sea, he said. The State did not possess vast reservoirs of petrol which could be kept intact for defence purposes. Storage tanks were more likely to hold enough for essential requirements if motorists would try to use even less than the ration allowed before the war. New Zealand used more petrol a head than the people of any other country except the United States, Mr Nash said, but that flow could not be maintained under war hazards.

It was to be regretted that protests against the restrictions had warmed up to resentment and a sense of injustice. There was no valid reason for anything like that. Mr Nash admitted the hardship but declared that the best efforts of good citizens for the victorious prosecution of the war should not be weakened by the curtailment of petrol supplies. ft would be helping the enemy to give detailed information about the petrol reserves requirements, but it was enough to say that cgnditions were such as to encourage more cheerful co-operation with the Government and Great Britain in conserving petrol stocks and in making the best possible national use of the rationed supplies.

“I frankly admit that the restrictions this year have caused material loss and inconvenience to many people,” said Mr Nash. “With the same frankness I concede that the points of the argument against restrictions > have been well taken and in good faith without prejudice to the ■ war effort it has been shown beyond dispute that the motor industry has been hit heavily, that the services of many workers have reluctantly been dispensed with, that the Treasury has been deprived of taxation revenue. “I agree, and who knows better than I do, how much all these facts mean to the State, but I also know that no Government would be foolish enough in the prevailing circumstances to bring these conditions into force without good reason.” “MUNITIONS MORE ESSENTIAL” Reviewing the exchange situation, which was a vital factor in the rationing, Mr Nash said that petrol for use in New Zealand had to be paid for with foreign exchange. Today guns and munitions were more essential for the Motherland than cars and petrol for the citizens of any country in the Commonwealth. Every gallon saved was an aid to victory. Britain’s needs must come first, he said. She was bearing the brunt of the hideous battle and her Government sought our co-operation in every helpful way from the outbreak of war. The Government, Parliament and people of New Zealand had agreed without qualification to co-operate with Britain’s war effort. Among the requirements was a request by the British Government to restrict consumption of petrol and make the most of the advantageous use of sterling in order to increase Britain’s purchasing power in the dollar countries. The response of the people as a whole was magnificent. There had been no whimpering. “It is also true that the motor industry and many users of petrol honestly believe that they have been harshly treated;” Mr Nash continued. “I cannot agree. Every restriction placed upon them has been carefully examined and weighed in the balance of national needs. Petrol rationing was introduced at the outbreak of war for the sole purpose of building adequate reserves. That objective was attained three months later. The Government then lifted the restrictions to provide petrol for holiday travel, although the British Government advised on September 9 that the cutting down of petrol imports would be a real assistance in the financial field. “With this in mind the New Zealand j Government, in close co-operation with ]

the British Ministry, decided at the end of January to reintroduce .rationing on February 1. The basis of rationing still left the aggregate consumption at the substantial .total of 72,000,000 gallons yearly. It was then stated that unless there was a serious deterioration in the international situation, the Government did not intend to reduce the rationing scale. “However, subsequent developments in Europe made it imperative that, this country increase petrol stocks for defence and make sure of an adequate supply in the public interest,” said Mr Nash. “To bring this about as speedily as possible special action was taken. The business, commercial, road transport and private car ration was reduced by one-third.”

This history of rationing, said Mr Nash, showed plainly that every step was taken in relation to changing circumstances. “HOLLOW ASSERTION” The assertion that there was no need for such drastic restrictions was hollow. If there had been no necessity for the latest reduction there would have been no further cut at all, the Minister continued. A doubt had been expressed whether the British Government requested the New Zealand Government to impose the restrictions, Mr Nash said. “There was no foundation for any doubt. I made that clear in my reply to an urgent question in Parliament on June 6 regarding exchange.” The Minister recalled messages he read on that occasion from the British Government making clear the imperative need not only for the conserving

of the dollar exchange but also for the conserving of imports from the Dutch East Indies although they were actually within the sterling group.’. Only last month the British Government, in response to an inquiry, had cabled that it still desired us to restrict, he said.

The position had not altered since, declared Mr Nash. He could only repeat what he said in Parliament, that we must ensure that our defence was not affected by the curtailment of stocks' of petrol and that no avoidable charges should be made on the dollar funds. “Let me say again that the Government will take steps to investigate the position of employees associated with the motor industry and will endeavour to ameliorate any hardship that might arise owing to the necessities of the defence situation. The position will continuously be reviewed according to the prevailing circumstances, the stocks in hand and the" exchange position. “When the defence requirements are fully met and we can purchase without injuring or, retarding Great Britain’s war effort, “the allocations will be adjusted,” Mr Nash concluded.