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Objects and Reasons.

1. Light hydrocarbon oils, as defined in clause 2 (h) and (k) of this Bill including the oils specified in the fourth. schedule thereto have had to pay a duty under section 6 (1) of the Motor Spirit Ordinance, No. 4 of 1930.

2. This duty was originally 15 cents per gallon, but it was raised to 25 cents in 1931 and to 30 cents in 1936 (Government Notifications Nos. 584 and 667 of 1931 and 571 of 1936).

3. It is now proposed to impose a similar duty on such heavy hydrocarbon oils as are to be used as fuel in heavy oil road vehicles. For definitions see clause 2 (f), (h) and (k) of this Bill. Heavy oils with a flash point of under 66 degrees C (corresponding to 150 degrees F) are exempted as they are not considered suitable for use as fuel in such vehicles.

4. To give effect to this proposal by amendment of the 1930 Ordinance would involve amending its title and almost every section therein and regulation thereunder.

5. It has been decided therefore that it would be prefer- able to replace the 1930 Ordinance by a new Ordinance in which all its provisions and the regulations thereunder have been reviewed and revised not only in the light of the new proposal relating to heavy oils, but also in the light of importation and export by ship, air, road or train." development of air-traffic, the building of a road to China and the linking up of railways in China having made such review and revision necessary.

The

6. A table of correspondence is attached, showing the variations between this Bill and the law it is intended to replace when enacted.

C. G. ALABASTER,

Attorney General.

February, 1939.