PETROL COMBINE’S RISE

Hokitika Guardian, 5 March 1929, Page 2

PETROL COMBINE’S RISE

WILL IT BREAK BRITISH -MOTOR INDUSTRY? (United Press Association—By Electric Telegraph—Copyright). LONDON, .March 2. l here is an increase of two pence farthing jier gallon in the price of petrol. Tnis finds the British motorists again in stern protest at their apparently nnt-ending financial Burdens. The “Daily Express,” analysing this increase, features the fact that it means an additional eight millions in llie coffers of the oil companies, which only this week have succeeded in Bringing the Russian oil products into tneir combine, and Iherhy eliminating our under-selling. The “Daily Express” points out that any of the eight millions of extra money charged, approximately two millions will go to ,the Anglo-Persian Company, which is the one controlled by the British Government. The paper says: “The British Government thereby will extract an extra profit from the British motorist, from whom it. already is obtaining twenty, five millions in the horse ixiwer tax, and seventeen millions in the petrol tax. Tims the taxation of the motorist is no less than fifty-eight millions. Mr Churchill is stated to he lioping that there will be a further increase in the petrol tax, as compensating for a reduction in the horse power tux. Ail increased petrol tax is now unthinkable, so that, presumably, the horse power, which had nearly killed tne Eiitish motor car experts, must remain.” .Scores of the authorities point out that it is absurd to maintain the horse power taxation, saying it has ruined the English car’s chances in Australia, where the imports of British vehicles nave alarmingly fallen oil'. This has refleeted on the British factories, where, firstly, the post-war output has shown a decrease. The “Evening Standard” editorially describes the taxation on motoring as “oppressive,” and says it is sure to reflect on the motor industry. It says this double taxation is overheavy and overeumhersoinc. A deputation of twenty-two motoring organisations is seeing Mr Churchill next week to urge a reduction of the taxation. The general public also are likely to lie affected. The ominibus companies say that unless there are compensating features in the Budget, increased fares will he necessary.