LICENCES TO STAND

Ashburton Guardian, Volume 66, Issue 48, 6 December 1945, Page 8

LICENCES TO STAND

MANUFACTURE OF TYRES (P.A.) WELLINGTON, Dec. 5. Reserved decision followed nine appeal© against the granting by the Bureau of Industry of licences to three firms for the manufacture of New Zealand tyres and tubes for motor vehicles had been given by the Industrial Appeal Authority, Sir Francis Frazer. The tenth appeal, against the refusal of the Bureau of Industry to grant a licence for the purpose to a specific firm, had also been disallowed. The three firms to which the bureau granted licences were Reid (New Zealand) Rubber Mills, Ltd., Dunlop Rubber (N.Z.), Ltd., and the Firestone Tyre and Rubber Company of New Zealand, sLtd. Three firms, which each appealed against the granting of each of- these licences, were Michelin and Company, Ltd., A. S. Paterson and Company, Ltd., and the Avon-India Rubber Company, Ltd. The tenth appeal, against the refusal of a licence, was by G. W. Skellerup. “The weight of evidence is conclusive in showing that a country with conditions comparable with those. of New Zealand, and with 300,000 vehicle registrations, can well support an economic tyre and tube manufacturing industry,” said Sir Francis Frazer. “In my opinion the evidence as a ivhole leads clearly to the conclusion that the tyre and tube manufacturing industry will be economic in itself. Only three units have been licensed, and the limitation in the number of units will enable each to obtain a sufficient share of the market, and so ensure full economic production. Furthermore, it has been decided that only sizes and types in general demand shall be tor the present manufactured in New Zealand. Odd sizes and types, which it would be less profitable manufacture in New Zealand and which constitute only about 10 per c ent, of the total requirements, will in the meantime continue to be imported. “Cn the more general issue, I am satisfied, having regard to the' purposes of the act, that the establishment of the industry in the form decided on AVill promote the economic welfare of New Zealand.”