1.—13 A.

3. Petrol-resellers have for years past been in an insecure position owing to outbreaks (often prolonged) from time to time of price-cutting, with its attendant evils. More than one approach has been made to the Government, and the position of the petrol-resellers has on more than one occasion been before this Committee. Just looking at the statement. The Prime Minister said that price-cutting was to be combated by a Bill to be brought down. If that could be done it would be a very great help to us. _ I think you gentlemen are sufficiently acquainted with the position of the price-cutting in the reselling industry. 4. We regret to say that in our considered opinion the proposed Bill offers no prospect of relief to the petrolresellers. From time to time we have urged on the Minister the desirability of dealing with the situation by means of declaring minimum prices in any locality whenever such action should prove necessary in order to control any outbreak of price-cutting. The power exists under the Motor-spirits (Regulation of Prices) Act, 1933, and is capable of easy and effective operation. The idea is that the Motor-spirits Act of 1933 clearly, in clause 4, gives power to the GovernorGeneral in Council to fix the maximum and minimum prices not only for wholesalers and retailers, but also to fix the price in regard to any particular locality, and our opinion is that if the Government would on one occasion only—on the next occasion when price-cutting rears its head—say in Wellington that until further notification the minimum retail price of motor-spirit is to be Is. 9d. per gallon at every petrol-refilling station, that would be all that we require. The price would be the price that was fixed by the Board of Trade, but the Board of Trade has now, as a result of previous inquiries—departmental and parliamentary—such evidence as would enable it to check up very quickly on any situation. We find here that people are selling at Is. 7d. ; that is clearly uneconomic, and the lowest price that a petrolstation can reasonably be expected to keep up is Is. Bd. or Is. 9d. The Order in Council would declare that in the City of Wellington, within a radius of fifteen miles, until further order the minimum sale price of petrol shall be not less than Is. lOd. Mr. Harris.] Is the retail price not fixed ?—The Government knows from time to time what the resale prices are. . Supposing the wholesalers dropped their prices ?—That information is clearly available to tiic Board of Trade. I think Mr. Schmitt will agree with me that the Board of Trade can find what the position is on any article, both wholesale and retail. The people who would object would be the petrolresellers. They know what the wholesale price is ; they simply go the Board of Trade and say, " Here is the price delivered into our hands—that price is, say, Is. 6|d. We find people selling at Is. 7d., and that means we have to go to Is. 7d. and we will have to go lower. Will you advise the Government to bring in an Order in Council to stabalize the price and fix it until further order." The machinery is there and it was contemplated by the Act of 1933. It is not good to fix the wholesale too low—how about the Gilmore selling at Is. sd. {—lhe Uilmore has gone out, and there are four major companies. I would be very pleased to go into that more fully but I did not think it was right to take up too much of your time because we have a petition which has not yet been dealt with before the House. However, I should be very pleased to go into that and show how simply that could be done. Mr. Wilkinson.] This would not get over the whole difficulty. It is dealing with only one aspect of the case, but the Bill covers everything ? —I make a suggestion at the end about that. On the question of the practical effect of the Bill, T refer to our opinion, a copy of which was handed to the Minister and which I now submit herewith. I would ask you to turn over one page. Opinion re Commercial Trusts Amendment Bill. 1. This Bill, introduced into the House last session, may be brought forward again. It was stated by the Prime Minister, in effect, that the Bill was intended to enable price-cutting to be combatted. 2. In order to understand the Bill, it is necessary to refer to sections 3 and 4 of the Commercial Trusts Act, 1910, and to consider the qualification of those sections proposed in the Bill. Then I set out section 3. 3. Section 3 of the Act reads as follows : — Every person commits an offence who, either as principal or agent, in respect of dealings in any goods, gives, offers or agrees to give to any other person any rebate, refund, discount, concession, allowance, reward, or other valuable consideration for the reason or upon the express or implied condition that the latter Person— (a) Deals or has dealt or will deal, or intends or undertakes or has undertaken or will undertake to deal, exclusively or principally, or to such an extent as amounts to exclusive or principal dealing, with any person or class of persons, either in relation to any particular goods or generally ; or (b) Does not deal or has not dealt or will not deal, or intends or undertakes or has undertaken or will undertake not to deal, with any person or class of persons, either in relation to any particular goods or (c) Restricts or has restricted or will restrict, or intends or undertakes or has undertaken or will undertake to restrict, his dealing with any person or class of persons, either in relation to any particular goods (d) Is or becomes^or°has been, or has undertaken or will undertake to become, a member of a commercial (e) Acts 1 or has acted or will act, or intends or undertakes or has undertaken or will undertake to act, in obedience or in conformity with the determinations, directions, suggestions, or requests of any commercial trust with respect to the sale, purchase, or supply of any goods. This section clearly makes it an essential condition of the offence that the rebate, &c., is given upon one or more of the five conditions set out therein. It does not make it an offence to give a rebate, all of those conditions being absent.

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