PRICE OF PETROL

Taranaki Daily News, 4 June 1934, Page 7

PRICE OF PETROL

ACTION BY RESELLERS. PLIGHT OF INDUSTRY. Allegations that in spite of the legislation passed last session suicidal competition was going on in the trade, were made by a deputation from the New Zealand Petrol Resellers’ Association which waited upon the Prime Minister, Rt. Hon. G. W. Forbes, and the Minister of Industries and Commerce, Hon. R. Masters, on Friday. The Government was asked to exercise the powers conferred upon it by Parliament and fix the retail price. The Prime Minister said that the question required full investigation, and he suggested that the best course for the association to adopt would be to petition the House of Representatives.

In- introducing the deputation Mr. P. Fraser, M.P. emphasised the plight of the workers in the industry, and said that many of them were in danger of being thrown out of work unless immediate steps were taken by the Gpvemment. The conditions under which the men were working were anything but creditable.

Mr. Masters: Have they made application for an award? Mr. Fraser said he understood the matter was under consideration.

The case for the deputation was stated by Mr. W. M. King, who said that, when the Bill giving the Government power to fix by Order-in-Council the wholesale and retail prices of petrol was passed, the retailers expected that steps would be taken to give effect to the decision of Parliament. “Here we are to-day,” he said, “to state our keen disappointment that this has not been done, and to urge that immediate action be taken.”

The whole industry, Mr. King said, was in a state of chaos, as resellers were being forced to retail petrol at a price which, with overhead charges included, was less than cost price. As a further result of the Government’s inaction, the labour conditions at some petrol stations were such as should not be permitted. Long hours were being worked for small wages, and this state of affairs could not be remedied unless a reasonable profit was made by the reseller. A substantial number of petrol station owners had gone bankrupt in the last year or two solely because they had been forced to sell petrol below an economic price.

Mr. King said that in order to satisfy the Department of Trade and Commerce regarding the margin required for service stations, the Wellington resellers engaged three well-known accountants, who made a thorough survey of books and accounts of the main petrol stations in the city, and their report clearly stated that it was necessary for resellers to obtain a margin of 3d per gallon in order to pay the necessary over}- id and wages. Yet in Auckland and Christchurch for the past twelve months petrol stations had been forced to work on a margin of Id on cost for long periods, and they had found the greatest difficulty in holding their price : lid on cost for any length of time. The Prime Minister, in his reply, said he realised as much as the members of the deputation did that to carry on a business which did not show some profit was not very satisfactory. He thought it would be admitted, however, that there were too many petrol pumps in New Zealand, and it would be unreasonable to raise prices to keep them in existence at the expense of the motorist. Before any action was taken that aspect would have to be gone into as the position of the re-sellers had not arisen when the Bill was under discussion last session.

Mr. Fraser pointed out that the scope of the legislation was sufficiently wide to meet the present position. “The whole question requires thorough investigation,” Mr. Forbes replied, “and it might be that the best course to adopt would be to set up a Parliamentary committee to hear evidence. . . .” Mr. R. McKeen, M.P.: Would it be necessary to present a petition? Mr. Forbes: Yes, and once we had all the information at our disposal we would know how to act.

Mr. Fraser: But these men appeared before the Parliamentary committee last session. On their evidence a report was made and on that report a Bill was brought down. A member of the deputation stated that the re-sellers were being made the “chopping block of the fight to-day.” Mr. Forbes said he appreciated the point, but thought the wisest course was to petition Parliament,