BENZOL FROM COAL.

Waikato Times, Volume 121, Issue 20260, 31 July 1937, Page 8

BENZOL FROM COAL.

EXEMPTION FROM DUTY. (By Telegraph.—Press Association.) CHRISTCHURCH, Saturday. To encourage the production of motor spirit from iNew Zealand coal the Government has decided not to impose the excise duty on benzol produced as a by-product of domestic or town gas works. The exemption will be limited to a total quantity of 500,000 gallons a year, and subject to the condition that substantially all New Zealand coal is used in its production. There is a statutory provision for she imposition of an excise duty on benzol produced in the Dominion, but up to the present this has not been invoked as regards the quantity at present produced, which is approximately 20,000 gallons a year. In making this announcement today, the Minister of Mines, the Hon. P. C. Webb, said that benzol was being produced principally by the Christchurch Gas Company, and it is hoped that a definite assurance that up to 500,000 gallons of this spirit would be exempted from excise would have the effect of increasing the consumption of New Zealand ore, and also of adding to the fuel oil supplies in the Dominion.

The benzol produced at Christchurch has proved highly successful, said the Minister, especially when mixed with other grades of petrol, and a considerable quantity is used for aircraft. He hoped that as the result, of the Government's action, an impetus would be given to the local industry and that larger quantities of New Zealand small coal would be used:.