PETROL RATIONS

Bay of Plenty Beacon, Volume 2, Issue 231, 30 October 1940, Page 5

PETROL RATIONS

STATEMENT BY THE N.Z. MOTOR TRADE FEDERATION INCREASE CRITICISED Disappointment is hardly a strong enough'' word to express the feelings of the motor industry on the announcement made by the Hon. Minister of Supply, increasing the petrol) ration by what is stated to be 25 per cent on the present allowance. states the N.Z. Motor Trade Federation in a Press communique.

While 25 per cent may seem a substantial rise, it must not be forgotten that the July reduction was on the basis of 33 1-3 per cent. In gallons the increase means that the 8 li.p., cars will now receive 5 gallons per month instead of 4; the 10 h.p. car will receive 7% gallons instead of 6, and the 15 h,p. car and upwards will receive 10 gallons instead of 8. In mileage this gives an additional distance averaging round I about 40 miles per month. Sterling Exchange l . In the Minister's statement he says that "the whole position has received most thorough examination and consideration by the Government," and then he goes on to say that there are four points of consideration, first and foremost being the defence of New Zealand. The motor industry agree, but maintain that this is taken care of by the fact that our storage tanks are full to-day to their workable cajjacity and can. we think, be kept at that point. The second point is the Avar needs of the Government in relation to the conservation of dollar funds. In this matter there is a certain amount of obscurity as to lioav far dollar funds are affected by purchasing petrol. The question has been ably dealt AA r ith in an article on the supply of motor spirit prepared by the Canterbury Chamber of Commerce in consultation Avith the Department of Economics of Canterbury University College. In this article it is pointed out that out of every £1 "spent on petrol by NeAV Zealand consumers, 21 per cent only ! pays for the landed cost of the petrol and requires sterling exchange. ; The balance of 79 per cent remains < in NeAA r Zealand. The article points ; out-that if half of the exchange for imported petrol is used to purchase dollar or foreign exchange, then eA r ery £1 spent on petrol in NeAV Zealand invol\ r es a reduction in the Empire dollar or foreign exchange holdings amounting to less than 2s , sterling. From this it Avill be seen . that the amount of sterling or dollar exchange involved in giving the , motorists of New Zealand one million gallons of j>etrol per month is very small indeed. The Result is Chaos.

The third reason given by the Minister is the requirements of the public. It Avould appear from the statements made by the automobile clubs that they are quite able to deal Avith this section of the Minister's reply. The final point deals Avith the AA 7elfare of the motor industry in this country. Seeing that this is named last in the schedule, I think Ave can let the matter remain at that,, because the industry has been of the opinion right throughout that it has been a bad last in any consideration Avhich has been given to the petrol rationing scheme. The motor industry was hopeful that the at this time would haA'e placed the petrol rationing scheme on some basis of stability, as has been done in Australia, because the rationing scheme there is based on a period of six months subject, of course, to war conditions, In Ncav Zealand avc have no assurance of the future policy in regard to this very" important matter, so that the motor industry is not able to make any future plans, and the result is chaos, The difference betAAeen the quantity of petrol Avhich the motor industry considers is necessary for reasonable stabilisation of conditions and the amount which the Government arc prepared to give is so small that it is difficult to. understand Avhy the Government is not prepared to meet the position in a reasonable Avay.