PETROL RESTRICTIONS

Bay of Plenty Beacon, Volume 2, Issue 219, 30 September 1940, Page 2

PETROL RESTRICTIONS

THEIR ECONOMIC EFFECT (The folEowing article appeared in the Mercantile Gazette of New Zealand on August 28, 1940,.) The attitude of the Motor Traders Federation in asking for the release of a further one mill ton gallons of motor spirit per month is we think a reasonable request and one that should have the support of the whole business community. The fact that Ave are at Avar makes it all the more necessary that the normal' business of the country should be kept up to the highest level possible under the given conditions.. Transport is the life blood of the business world, and this is true be the business, primary production, secondary production or any of the numerous sub-divisions in an , econ- j omic community. The restrictions in petrol consumption introduced soon after the outbreak of war resulted in a slowing down of production in many traded, but the further restrictions introduced last month has caused not only a slowing down of production, but in many cases a severe dislocation of business. It is interesting to note some of the arguments which have been advanced by the Government in support of its policy of petrol restriction, chief of which has been the "Need for conserving dollar exchange funds/' On the face of it this argument appears sound but when -we turn to the latest New Zealand Year Book we find some rather illuminating facts under the heading "Source of Imports." The following are the sources of petrol 'imported into New Zealand together with percentages of the total. Dutch East Indies, 56J0. United States of America, 28>%. Bahrein Islands, 13%. ' These figures show the fallacy of the "dollar funds" - conservation. If it is a matter of conserving sterling funds then it might be fairly asked, has petrol no better claim on sterling funds than alcoholic liquors? The following figures taken from the N.Z., Trade Review shows the importation of spirits and wines for the first six months in the year for 1939 and 1940: —

The fact that payments for some of the spirits imported may be delayed in this country does not minimise the fact that peVrol for industry is of more importance than wines and spirits. It is also of interest to note while we are considering relative importations, that for the first five months of this year over the corresponding period in 1939, we imported an increased amount of tea to the value of *£167,910, arid at the same time importations of motor vehicles fell by £2,054,708. The extra one million gallons of motor spirit per month that the motor trade is asking for means only an additional payment of £300,000 per annum.. We have noted the effect of the petrol restrictions on industry :o general, but what of the motor trade itself. In normal times the motor industry employs over 40,000 the vast majority of whom are maleaadults ""many of them skilled men in the engineering trades whose work is necessary not only to the industry in general but as potential recruits for the Air Force ground staffs. The wages bill paid by the motor industi'y is one of the largest in fhe country. Then again the industry in normal times contributes through the customs .department large amounts for the importation of ears, trucks, parts-, tyres antl other goods. Soon after the outbreak of war, the motor trader found that hi.s main source of income, cars and trucks, was cut off or seriously curtailed, leaving as his sole source of revenue his workshops. With the small amount- of petrol allowed to private car owners they are forced to leave them idle in their sheds most of the month with the result that the garage owners' workshop receipts' have also dwindled to an extent where he has been forced to dismiss many of his employees. There is still a further aspect of the trouble, the New Zealand public has invested, in private cars an

amount running into tens of millions, the exact figure it would be hard to .estimate, this investment asset is in most cases lying deteriorating |rapidly m numerous'sheds throughout the country, merely through want of use, and the Government instead of assisting in this gross waste of machinery should encourage the cvasonablie use of private cars by an adequate allowance of petrol. If this was done and the cars were once more, placed on the road there Avould be more money for the motor traders to keep their men in employment, there would be more revenue for the Government and lastly it would help in at least some measure to pay for the heavy highway programme which the Minister of Public Works recently announced for this 'year. A programme which has no justification in war time, and certainly less when the means of paying for the work —the tax —is cut off through the restriction of petrol. The attitude of the Australian Government Avhose position as regards is similar to that of this country is in marked difference to that of our Government; Tn Australia private motorists are allowed from eight to 23 gallons per month according to the horsepower of the engine, as against our ration of from 4 to 8 gallons. Unless the Government is prepared to increase the nllowance of petrol on similar lines lo that of Australia it will find not only that it has a large proportion of the motor trade employees on Social Security, but that when it does lift the restriction there will be few cars left fit enough lo be on the road. i X£(i'lSjl Jfliii IS: I I

1940 1939 Increase gallons gallons of gals. Whisky 142,373 128,139 14,231 Value £186,710' £168,421 £18,289 Jlum 18,556 14,907 3,449 Value £11,.441 £8,845 £2,596 c Wines 70.611 57,170 13,471 Value £40,955 £33,551 £7,601