PETROL SUPPLIES.

Timaru Herald, Volume CXXXV, Issue 18913, 26 June 1931, Page 8

PETROL SUPPLIES.

“CHAOTIC AND PARLOUS STATE.” GOVERNMENT INQUIRY URGED. "The petrol position in New Zealand is in a chaotic and parlous state as regards the struggle between the garages and the petrol combination,” said Mr F. W. Freeman (Canterbury), at yesterday’s quarterly meeting of the South Island Motor Union, held in Tinqaru, when urging that a Government investigation should be made into the whole question in this country.

Mr Freeman said that at present the Dominion was caught in an economic blizzard, and the blight of depression was overshadowing the whole world. Governments were distracted, and the ogre of unemployment was gnawing into the vitals of otherwise stable communities. The times demanded economy in savings in national and local body administration; and universal stocktaking, both public and private, was the order of the day. Transport was one of the -most vital factors in the cost of living, which the Government had genuinely endeavoured to reduce by ten per cent. " A Deliberate Boycott.” Mr Freeman went on to say that In Christchurch some of the garages had recently reduced the price of petrol per gallon to 1/9, and by this reduction had fallen foul of oil companies. The companies, Mr Freeman alleged, began by introducing the c.o.d. system of supplying petrol to the garages, which the garages met, and then the companies adopted go-slow tactics in supplying them. To him it looked like a boycott of Christchurch traders, who were expected to bend the knee to foreign financial interests. “ Almost Exploitation.” At present, ’ the speaker continued, all petrol came from America, and surely motorists would not come so low that it was necessary for them to beg that they be allowed to have petrol. The trade balance between the United States and New Zealand was something like £5,000,000 in America’s favour, and all New Zealanders knew how their country’s exports fared when they were sent to America. When the petrol position was considered, one might say that it was almost exploitation. New Zealand had the Commercial Trusts Act of 1910, and it might be said that foreign petrol came under Clause 5, relating to illegal monopolies, which stated: “Any person who conspires with any other person to monopolise wholly or partially the demand or supply in New Zealand or any part thereof of any goods, or to control wholly or partly the demand or supply of prices in New Zealand or any part thereof of any goods, is guilty of an offence, if such monopoly or control is of such a nature as to be contrary to the public interests.” He would not say that the Companies had contravened the statute, but from figures, which he understood were fairly accurate, he desired to point out that petrol in New Zealand was costing the consumer far too much. New Zealand, he said, imported approximately 60,000,000 gallons per annum, said to cost at Gulf Ports in Mexico approximately £500,000. By the time the petrol was distributed amongst consumers the cost was in the vicinity of £6,000,000. Taking £500,000 for freight, and £1,800,000 for duty, the companies’ share was £2,250.000. leaving £750,000 for garages and petrol stations. If these figures were correct, and Mr Freeman said he had every reason to believe they were, the public actually paid out of their pockets in New Zealand £3,000,000 above the landed price, and that sum would balance New Zealand’s budget. It was common knowledge that there was a petrol war raging in America at the present time, and that petrol Was selling in the States for three and four cents a gallon. “Inviting National Stagnation.” Mr Freeman said that the motorists of Australia had asked the Commonwealth Government to investigate the position, while the New Zealand Government had been similarly requested, and had promised to do so. To date the promise had not been fulfilled. The companies were laced with a good deal of expense owing to their costly methods of distribution. It appeared that any applicant could secure a bowser, which were more common than hotels on the West Coast during the early days. In his opinion .these bowsers should be zoned, just as a municipality zoned its milk supply. What he desired was the Union to make strong representations to the Government to endeavour to have British petrol brought into the country, as an encouragement of British trade meant Imperial unity. It was necessary, he thought that the situation Should be inquired into by the Government this session. “For us to have to rely on foreign supplies, is invitihg national stagnation,” said Mr Freeman. He moved: “That this Union approach the Government and ask for a thorough and exhaustive investigation into the petrol position, and ask Mr A. E. Ansell, M.P. to ventilate the matter from the floor of the House.” The motion was seconded by Mr J. R. Haigh (Southland). Mr Robt. Wilson (South Canterbury) said that it would be a good idea if petrol could be brought into New Zealand from some other country, but the main, problem tp solve was how it could be done. There was no further discussion, and the motion was carried unanimously.