Petrol Company Loans ‘Cheap Money’

Press, Volume CVI, Issue 31109, 12 July 1966, Page 15

Petrol Company Loans ‘Cheap Money’

An allegation that garage owners who received interestfree loans from petrol companies had accounts that “coloured” their profit abilities, was made by counsel for an objector, Mr G. S. Brockett, to the Motor Spirits Licensing Authority yesterday. Mr Brockett submitted to Messrs J. W. Bain, F. S. Taylor and G. Laurence, that “cheap money” was being used to finance garages. The market interest, of about 7 per cent, was not paid, and during the first few years, no repayments were made. He claimed such factors resulted in premature applications for additional retailers’ licences.

When granting North West Service Station, Ltd. (Mr A. D. Holland), a licence to retail motor spirits from two pumps at its premises at 449 Wairakei road, the Authority agreed with Mr Brockett, but would not refuse the application on that ground. All the

substantial garage tests were adequately fulfilled. Because two retailers, M. J. and J. P. Sullivan and Mrs M. A. Kerr (Fox Glacier Hotel) and R. D. Donovan, Rangiora highway, Bennetts, did not comply with requirements of the Motor Spirits Distribution Act (1953), the Authority warned that future neglect would result in either suspension or revocation of licences. The retailers had failed to make returns and had not answered relevant correspondence. The Authority granted an amendment to the licence held by O. E. A. and L. A. Fairbrass, West Coast road, Waddington, to sell motor spirits otherwise than through pumps The motor spirits retailer’s licence held by Smart and Sons, Ltd., Smarts road, Hornby, was revoked. The company asked for the licence to be surrendered. The sitting will continue today.