PRICE OF PETROL

Timaru Herald, Volume CXXXVIII, Issue 19944, 31 October 1934, Page 6

PRICE OF PETROL

RETAILERS’ PETITION FOR FIXATION HOUSE TAKES NO ACTION By Telegraph— Press Association WELLINGTON, Oct ober 30. In the House of Representatives today, the Hon. A. D. McLeod (Ind C Wairarapa), on behalf of the Industries and Commerce Committee, reported on a number of petitions which sought the fixation of the price of petrol. The Committee had no recommendation to make, but suggested that the, Government should investigate the operations of the Commercial Trusts Act as it affected price cutting. Mr McLeod added that the Committee was of the opinion that a great deal of the trouble arising in the retail part of the petrol industry was owing to the fact that there were far too many persons attempting to make a living out of the business. The trouble was accentuated by the fact that the Commercial Trusts Act which was introduced to prevent monopolies detrimental to the public, was largely, owing to the depression, being used to encourage hopeless price cutting. The Committee was of the opinion that an investigation should be made by the Government to see whether it was possible to amend the Act in a way that would not permit price-cutting which was not approved by any section of the community. Mr R. Semple (Lab.. Wellington Suburbs) said he was satisfied that retail sellers had a bona fide grievance and asked why the Act passed in the previous session had not been put into operation. He contended that it was owing to the act of a Minister who was not getatable by members of the House, who was not elected by the people but who had sufficient power to veto the will of the House. If that was allowed to happen what would become of the prerogative of the House? Prime Minister’s Comment. The Rt. Hon. G. W. Forbers said the Minister of Industries and Commerce acted only after consulting the Cabinet, so his decisions were those of the Cabinet. The conditions ruling at the time the Act was passed had changed and there was no need to put it into operation. Regarding the fixing of a minimum price, a great many things would have to be considered. The man who relied only on the sale of petrol for a living could not sell at so low a price as a man who sold petrol in conjunction with a garage business. The Government also had to watch the interests of motorists who were paying pretty heavy taxation. Another point was that Parliament had petitions asking the Government to fix the price of bread and various other things, such as tobacco, in all cases at a price higher than that ruling at the tjme. They also had complaints of the high cost of living. The Government had dealt with the position, as it thought, in the best interests of the whole community. Other members urged the Government to act in the matter, Mr M. J. Savage, Leader of the Opposition, saying that the selling of petrol should be a matter for full investigation. He said the Committee which had followed the Government the whole way in the previous session had also fallen down on the matter now and had no recommendation to make. The report was tabled.