GREATER NEED

Waikato Times, Volume 127, Issue 21205, 30 August 1940, Page 9

GREATER NEED

PETROL RESTRICTIONS DRAIN ON STERLING RELAXATION UNLIKELY (By Telegraph.—Special to Times) WELLINGTON, Thursday A cablegram from the High Commissioner in London, Mr W. J. Jordan, was quoted by the Minister of Finance, the Hon. W. Nash, in the House of Representatives today when replying to an urgent question on the petrol restrictions- The Minister said that in reply to an inquiry made by him on August 5 whether relaxation of the restrictions could be granted, since supplies could now bo obtained on a sterling basis, the High Commissioner had sent the following message:

“ The United Kingdom Government still desires you to restrict. Sterling area as a whole has to find a very heavy sum in dollars for oil and from this point of view the necessity for restriction is greater than ever owing to the increased purchase of munitions in the United States.” Less Than Last Year The question asked by Mr A. E. Jull (Opposition—Waipawa) was whether the Minister could give a definite statement to the motor industry in particlar and the public generally on the possibility of easing the petrol restrictions, even to the extent of an additional 1,000,000 gallons a month as requested by deputations to the Government. The Minister was also asked whether the restriction of 25 per cent in the quantity of motor spirits imported into the Dominion for thß first half of 1940, compared with the same period last year, was due first to New Zealand’s inability to supply the necessary foreign exchange, or to an opinion held by the British Government that there was more urgent need for its foreign exchange holdings than to provide for the maintenance of the 1939 level of importations. From Dutch East Indies Mr Nash said it had been suggested that as the Dutch East Indies were now on sterling it might be possible to relax the restriction on petrol obtained from that source, but a cablegram he had received from London definitely discounted that belief. “ There has never been any restriction on the importation of petrol into the Dominion,” Mr Nash continued, after quoting Mr Jordan’s message. “ All there has been is a restriction on the use of it, for the reason that it is not paid for until it is sold for use.” Mr S. G. Holland (Opposition— Christchurch North): What about easing it? “ I know of no way of increasing the use of petrol without affecting the United Kingdom’s purchase of munitions,” the Minister replied. “ The Government will do all it can, however, to assist the motor industry to ameliorate any difficulties that may have arisen through the defence situation.”