EFFECT ON PETROL AND OIL

Chronicle (Levin), 20 September 1949, Page 5

EFFECT ON PETROL AND OIL

WELLINGTON, Sept. 19. An inquiry is now under wdy 1o aseertain to what extent the petrol and lubricating oil position, so far as New Zealand is eoncerned, will be affee.ted hv the devaluation of sterling and New Zealand currency. This was stated this afternoon by the Minister of Finance (Mr. Nashl who added that the investigation would take some time. The position would not be known immoI diately. j An "indieation tliat the devaluation of the sterling had not altered his opinion that New Zealand should ob- ! tain a dollar loan to obtain essential requirements for eapital developmenf,' was given by Mr. Nash. The Minister j added, "however, that nothing had yet ; ' been finallv settled. He thought tliat the New Zealand Government would go ahead with the dollar loan proposal. j "We might look at the position but the onlv reason for buving goods in [ the United States is to obtain equip- ' ment necessarv for the expansion of . our production. Therefore, it is worthwhile. ' ' The Minister said that the sum re- ' quired was approximatelv eqnal to the : differenee of New Zealand exports to the United States and its imports from that eountry. Asked if the devaluation of sterling would affect the announcement he ma.de a week ago that 1,500,000 dollars were to be made available for the importation of farm maehinerv from dollar sources, Mr. Nash said tliat all licences were issued in the value of money and uot in goods. Tf it were considerad imperative to bring in all the machinery originallv allowed for, the Government might deeide to do so. That was a matter whieh would have to be looked at later. Mr. Nash said the question of the reimposition of the gold tax following appreeiation in the priee of gold, had not yet been thought out. Mr. Nash said that the Price Tribunal would keep a eheek to ensure that holders of goods from dollar areas already in New Zealand did not profiteer. . He pointed out that priees depended not upon the date of importation, but upon the date of payment for goods. There might he goods already in the countrv for whieh payment had not already been mado.