VITAL NEED

Taranaki Daily News, 21 September 1940, Page 8

VITAL NEED

By Telegraph—Press Association.

PETROL RATION CRITICISM ANSWERED MR. NASH'S STATEMENT

Wellington, Last Night. The Minister of Finance, the Hon. W. Nash, reviewing the petrol restrictions, deelared that the belief which appeared to be held among motorists and organisations associated with the motor industry that the Government had been harsh and unjust in restricting the use of petrol was not justified by the facts. Since the outbreak of the war the Government had given careful attention to the needs of an extensive industry, to the requirements of essential transport services and to the interests of private motorist. Everything possible had been done to secure an equitable scale of

rationing. However, vital needs must come first. We dare not, he stated, take risks in establishing and maintaining adequate petrol supplies for defence emergency purposes. Repleuishment Not Sure. If our stocks of petrol got low we could not be sure of replenishing them at a moment's notice. Oil tankers were not waiting our beck and call, nor must we forget the risk they run of enemy action at sea. The State did not possess vast reservoirs of petrol which could be kept intact for defence purposes. Storage tanks would more than likely hold enough for essential requirements if motorists would try and use even less than the ration allowed. Before the war we used more petrol per head than the people of any other country except the United States, but that flow could not be maintained under war hazards. It was to be regretted that protests against restrictions had warmed up to resentment and a sense of injustice. There was no valid reason for anything like that. Mr. Nash admitted hardship but deelared that the best efforts of good citizens for a victorious prosecution of the war should not be weakened by a curtailment of petrol supplies. It would be helping the enemy to give detailed information about our petrol reserves and requirements, but it was enough to say that the conditions were such as to encourage a more cheerful co-operation with the Government and Britain in conserving petrol stocks and in making the best possible national use of rationed supplies. Hardship Admitted. "I frankly admit that the restrictions this year caused material loss and inconvenience to many people, with the same frankness that I concede that points in the argument against the restrictions have been well taken and in good faith, without prejudice to the war effort. It has been shown beyond dispute that the motor industry has been hit heavily, that the services of many workers have been reluctantly dispensed with, and that the Treasury has been deprived of taxation revenue. "I agree. Who knows better than I how much all these facts mean to the State? But I also know that no Government would be foolish enough in the prevailing circumstances to bring these conditions into force without good reason." Reviewing the exchange situation, which was vital in rationing, Mr. Nash stated that petrol for use in New Zealand had to be paid for by foreign exchange. To-day guns and munitions were more essential for the Motherland than cars and petrol for the citizens of any country in the Cornmon wealth. Every gallon saved was an aid to victory. Britain's needs must come first. She was bearing the brunt of a hideous battle. Her Government sought our cooperation in every helpful way. Agreement to Co-operate. From the outbreak of the war the Government, the Parliament of the people of New Zealand, agreed without qualification to co-operate in Britain's war effort. Among the requirements was a request by the British Government to restrict the consumption of petrol and make the most advantageous use of sterling in order to increase Britain s purehasing power m the dollar countries. The response of the people as a whole had been magnificent. There had been no whimpering. "It is also true that the motor industry and many users of petrol honestly believe that they have been harshly treated. I cannot agree. Every restriction placed upon them has been carefully examined and weighed in the balance of national needs. "Petrol rationing was introduced at the outbreak of the war for the sole purpose of building adequate reserves. That objective was attained three ^ months later. The Government then lifted the restrictions to provide petrol for holiday travel, although the British Government advised on September 18 that cutting down petrol imports would be a real assistance in the financial field. "With this in mind the New Zealand Government, in close co-operation with the British Ministry, decided at the end of January to reintroduce rationing on February 1. . ".The basis of rationing still left the aggregate consumption at the substantial total of 72,000,000 gallons yearly. It was then stated that unless there was a serious deterioration in the international situation the Government did not intend to reduce the rationing scale." European Developments. However, subsequent developments in Europe made it imperative for this country to increase petrol stocks for defence and to make sure of an adequate supply in the public interest. To bring this about as speedily as possible special action was taken in respect to all business and commercial road transport, and the private car ration was reduced by onethird. This history of rationing showed plainly every step taken in relation to changing circumstances. The assertion that there was no need for such drastic restrictions was a hollow one. If there had been no necessity for the latest reduction there would have been no further cut at all. Doubt had been expressed whether the British Government had requested the New Zealand Government to impose restrictions, Mr. Nash said. "There is no foundation for any doubt. I made that clear in my reply to an urgent question in Parliament on June 29 regarding exchange," he stated. The Minister recalled messages he had read on that occasion from the British Government making it clear the imperative need not only for conserving dollar exchange but also for conserving imports from the Dutch East Indies, although they were actually within the sterling group. Only last month the British Government, in response to an inquiry, had cabled that it still desired us to restrict petrol. The position had not altered since, deelared Mr. Nash. He could only repeat what he had said in Parliament— that we

must ensure that our defence was not affected by the curtailment of stocks of petrol and that no avoiidable charges be made on dollar funds. "Let me say again that the Government will take steps to investigate the position of employees associated with the motor industry and will endeavour to ameliorate any hardship that might arise owing to the necessities of the defence situation. The position will be reviewed continuously, according to prevailing circumstances of stocks in hand and the exchange position. When defence requirements are fully met and we can purchase without injuring or retard-( ing Britain's war effort allocations will be adjusted."