PETROL RATIONING

Wairarapa Times-Age, 10 August 1940, Page 9

PETROL RATIONING

PROTEST BY THE MOTOR TRADE GOVERNMENT URGED TO REVISE POLICY. RESTRICTIONS TOO SEVERE, (By Telegraph—Press Association.) WELLINGTON, This Day. “Evidence is growing to the urgent need for an immediate revision of the Government’s policy with regard to rationing petrol.” stated the New Zealand Motor Trade Federation, which is the parent body representing every phase of the motor industry in New Zealand, yesterday. "While fully appreciating that the war requires maximum effort and sacrifice on the part of every citizen of this Dominion, the federation has been and is of the opinion that to reduce petrol consumption in New Zealand below the level necessary to maintain essential services and permit of reasonable private and public transport facilities is not in the best interests of New Zealand, Great Britain, or the Empire. “It was for the purpose of stating their viewpoint that the New Zealand Motor Trade Federation sought an interview with the Minister of Finance. Mr Nash, in the hope that they would be able to impress on the Government the serious effect of its petrol rationing policy as applying to the public, the motor and garage trade, petrol and other allied industries, also to the employees of those industries. Thousands of motor trade employees have already lost their means of livelihood, and there is prospect of still further serious unemployment as the gathering effects of too severe petrol restriction becomes more evident.

INDUSTRY DISINTEGRATED. “It was also thought that Cabinet might be persuaded to give the motoring public and motor trade of New Zealand some better understanding of its future plan relating to petrol supplies with the object of dispelling the state of uncertainty and lack of confidence which now exists. It was felt that a clear and concise statement of the extent to which petrol might be available in future months would be of immeasurable benefit in preventing or stemming the present gradual disintegration of the motor industries’ skilled and trained staffs.

“Evidence was produced to show that the motor trade is the second largest industry in New Zealand, employing in normal times more than 40.000 people, most of whom are adult workers, and that any curtailment of its activities must inevitably result in serious loss of employment and a lower standard of living for its large army of workers. Further, it is estimated that in the past few years tne industry as a whole has produced and paid between 20 and 25 per cent of total Government revenue, and it must be recognised that if the present drastic petrol rationing scheme continues, there will be a serious shrinkage in this contribution to national finance with consequent reduction in the amount available to the Government for defence purposes.

“It was further made clear beyond doubt that petrol restrictions, and in particular the uncertainty regarding future supplies, has caused such a serious drop in business in the motor industry as to threaten the very existence of many sections of it. The consequent disruption to the social and economic life of the community will also reduce the war effort to a far greater extent than any possible gain there might be from the smaller quantity of petrol consumed. .

AN EXTREME SACRIFICE. “That these points have possibly had greater appreciation in other Dominions is evidenced by a statement appearing in the English Motor magazine of June 6. 1940, that ‘the only British Dominion which has seriously interfered with the normal use of petrol since the outbreak of war is New Zealand.’ In the light of this statement it is difficult to escape the conclusion that the people of New Zealand have been called on to bear a far greater sacrifice in respect of petrol restriction than is necessary or desirable. “The Minister’s attention was also drawn to the recent appeals made by the British Government to manufacturers in Great Britain to maintain and even increase their exports to assist in keeping Great Britain's war effort at the maximum. If Britain is to preserve her financial stability throughout a long war, she must continue to export goods to pay for those imports which are essential to war. and, if she is to buy New Zealand's butter, cheese, meat and wool, it can be done only by making it possible, in turn, for New Zealand to buy manufactured articles from her. New Zealand's policy of petrol restriction created a condition that made it impossible for this Dominion to assist Great Britain to implement her policy of maintaining exports at the maximum figure. “The deputation said that the motor industry fully appreciated the need to conserve for war purposes, and that, indeed, it had used every endeavour to eliminate all unnecessary usage. There was a point, however, where the restriction of petrol would defeat its own end as a contribution to war. If it were imposed to such an extent that it resulted in a partial wrecking of the second largest industry in New Zealand, created widespread unemployment in New Zealand, and prevented support of Britain's war policy, then it could scarcely be defended as a worthwhile sacrifice imposed solely for the purpose of prosecuting the war.

SUGGESTED CONCESSION. “The deputation stated that, after very closely reviewing the entire subject. it was of the opinion that the Government should ease the petrol restrictions to the extent of not less Ilian a further one million gallons a month and at the same time give an assurance to the public through the Press or by public statement that it would use its best endeavours Io maintain that petrol allowance. Only in tin's way could the grievous harm that has been done to the motor industry and to other industries dependent upon it be partially rectified. “In support of this it was stated that in the United Kingdom in 1938 the quantity of petrol consumed amounted to 1.995.000.000 gallons, against which the further quantity now requested was trifling. It was also stated that, according to information available to the federation, there is no shortage ol petrol in the world today, nor any general lack of shipping to carry it.

ECONOMIC CONSEQUENCES “In making this information available to the public, the New Zealand Motor Trade Federation desires to emphasise that the motor trade of New

Zealand does not disagree with the Government regarding the need to make the greatest possible sacrifices to maintain the Dominion's war effort at its highest pitch. However, where the opinion of the industry diverges from that of the Government is that the Government’s policy is not conducive to the greatest war effort.

"The federation claims that the repercussions the Government's policy must bring in its train will slow down the preparation for war in far greater degree than any value that could possibly accrue from the quantity of petrol saved. It is the federation’s emphatic view that over-restriction of petrol in New Zealand is not a contribution to the Empire's war effort, and that taking the long view the economic consequences of over-restriction will hamper rather that assist it.

“A study of the facts must convince any impartial observer that lhe Government’s handling of the petrol situation over the past 11 months has been hasty and ill-advised. Change has followed change with bewildering rapidity and with little apparent thought for the disturbance and inconvenience caused to the motoring public. During the period since the first introduction of petrol restriction repeated attempts have been made by the federation to obtain from the Government a concise and clear statement of its real desire and intention with regard to petrol—but with no result. Surely it is time that the Government made a declaration of its future policy."