BENZOL FROM COAL

Manawatu Standard, Volume LVII, Issue 206, 31 July 1937, Page 9

BENZOL FROM COAL

STIMULUS TO INDUSTRY. EXEMPTION FROM DUTY. Per Press Association. CHRISTCHURCH, July 31. • To encourage the production of motor ■pirit from New Zealand coal, the Government has decided not to impose an excise duty on benzol produced as a by-product of the domestic town gas works. The exemption will he limited to a total quantity of 500,000 gallons a year, subject to the condition that substantially all New Zealand coal is used in its production. There is a statutory provision for the imposition of excise duty on benzol produced in the Dominion, hut up to the present this has not been invoked as regards the quantity at present produced, which is approximately 20,000 gallons a year. In making this announcement to-day, the Minister of Mines (Hon. P. C. "Webb) said benzol was being produced principally by the Christchurch Gas Company and it was hoped that the definite assurance that up to 500,000 gallons of this spirit would be exempted from the excise would have the effect of increasing the consumption of New Zealand coal and also adding to the fuel oil supplies of the Dominion. The benzol produced at Christchurch had proved highly successful, said the Minister, especially when mixed with other grades of petrol, and a considerable quantity had been used for aircraft. He hoped that as a result of the Government’s action an impetus would be given to local industry and larger quantities of New Zealand small coal would be used.