NEW ZEALAND BENZOL

Ashburton Guardian, Volume 57, Issue 248, 31 July 1937, Page 8

NEW ZEALAND BENZOL

ENCOURAGING PRODUCTION. EXEMPTION FROM EXCISE DUTY. (Special to the “ Guardian.”) CHRISTCHURCH, This Day. To encourage the production of motor spirit from New Zealand coal, the Government has decided not to impose an excise duty on benzol produced as a by-product of town gasworks. The exemption will be limited to a total quantity of 500,000 gallons a year, subject to the condition that substantially all New Zealand coal is used in its production. There is statutory provision for the imposition of excise duty on benzol produced in the Dominion, but up to now this has not been invoked as regards the quantity at present produced, which is approximately 20,000 gallons a year. In making this announcement to-day the Minister of Mines (the Hon. P. C. Webb) said that benzol was being produced principally by the Christchurch Gas Company, and it was hoped that the definite assurance that up to 500,000 gallons of this spirit would be exempted from excise and this would have the effect of increasing consumption in New Zealand and also add to the fuel oil supplies of 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 was used for aircraft. He hoped that as a result of the Government’s action an impetus would be given to the local industry and that larger quantities of New Zealand coal would bo used.