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THE PETROL TRADE

CHAOTIC AND PARLOUS STATE TIMARU, June 25. “ The petrol position in New Zealand is in a chaotic and parlous state as regard* the struggle between the garages and the petrol combination,” said Mr F. W. Freeman (.Canterbury), at the quarterly meeting of the South Island Motor Union, held at Timaru, when urging that a Government investigation be made into the whole position. Mr Freeman said that at present the Dominion was caught in an economic blizzard and a blight of depression was overshadowing the whole world. The Governments were distracted and the ogre of unemployment was gnawing into the vitals of otherwise stable communities. The times demanded economy in national and local body administration and a universal stocktaking, both public and private, was the order of the day Transport was one of the most vital factors in the cost of living which the Gov ernment had genuinely endeavoured to reduce 10 per cent. Mr Freeman went on to say that m Christchurch some garages recently reduced the price of petrol per gallon to Is 9d. and by the reduction had fallen foul of the oil companies. The companies began introducing the c.o.d. system cd supplying petrol to garages. The com panics adopted go-slow tactics in supplying them. To him it looked like a deliberate boycott of Cliristchureh traders, who were expected to bend the knee to American financial interests. At present all the petrol came from America, and surely it was not necessary to beg that we should be allowed to have petrol. The trade balance between America and New Zealand was something like £5,000,000 in the United States’s favour, and all New Zealanders knew how their country’s exports fared when sent to America. New Zealand had the Commercial Trust Act, 1910, and it might be said that American petrol came under clause 5 relating to illegal monopolies. He would - not say that the companies had contravened the statute, but from figures which he understood were fairly accurate petrol in New Zealand w-as costing the consumer far too much. New Zealand imported approximat'v 60,000,000 gallons per annum, which was said to cost at the gulf ports in Mexico approximately £500,000. By the time the petrol was distributed amongst the consumers the cost was in the vicinity of £6,000,000. Taking £500,000 as freight and £1.800.000 as duty, the companies’ share was £2.250,000, leaving £750,000 for the garages and the petrol stations. If the

figures were correct, and he had every reason to believe they’ were, the public actually paid out in New Zealand £3,000,000 above the landed price. That " balance New Zealand’s Budget. There was a petrol war raging in America at present, and petrol was selling in the States for three and four cents a gallon.

Mr Freeman said that motorists in Australia had asked the Commonwealth Government to investigate the position, and New Zealand had been similarly requested, and promised to do so. Up to the present that promise had not been fulfilled. The companies were faced with a good deal of expense owing to their costly methods of distribution. It appeared that any applicant could secure a bowser, which were more common than hotels on the West Coast during the early dgys. Bowsers should be zoned just as a municipality zoned the milk supply. What was desired was that strong representations be made to the Government to endeavour to have British petrol brought into the country, as the encouragement of British trade meant Imperial unity. It was necessary that the situation should be inquired into by the Government this session. He moved—- “ That the South Island Motor Union approach Government and ask for a thorough and exhaustive investigation into the petrol position and ask Mr A. E. Ansell, M.P., to ventilate the matter on the floor of the House.”

The motion was seconded by Mr J. R. Haigh (Southland). Mr Robert Wilson (South Canterbury) said it would be a good idea if petrol could be brought into New Zealand from some other country, but the main problem was: How could it be done? There was no~further discussion, and the motion was carried unanimously.

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/OW19310630.2.232

Bibliographic details
Ngā taipitopito pukapuka

Otago Witness, Issue 4033, 30 June 1931, Page 63

Word count
Tapeke kupu
688

THE PETROL TRADE Otago Witness, Issue 4033, 30 June 1931, Page 63

THE PETROL TRADE Otago Witness, Issue 4033, 30 June 1931, Page 63

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