"KILLING THE GOOSE."

Auckland Star, Volume LXI, Issue 198, 22 August 1930, Page 5

"KILLING THE GOOSE."

CANADIAN DEALERS HARD HIT

OP2STONS OF THE TRADE.

MORE IMPORTS FROM U.S.A.?

"The Government has taken the first step towards wringing the neck of the goose that lays the golden egg," said one motor dealer in discussing the proposed ' new Canadian tariff rates this morning. ! If retained, the new rates will give an ' increased preference to English cars and ' decrease the discrepancy between Ameri- ' can cars and cars manufactured in , Canada and previously admitted on the English basis. Importers of English ' vehicles are naturally jubilant, American car dealers have very little to say, but give the impression that the proposals are slightly in their favour, and most 1 dealers in Canadian cars are thinking a tremendous lot of hard things. It is certain that if the new rates stand the prices of the many cars on the New Zealand market will go up. The new schedule will more than double the duty on Canadian-built vehicles, and the price of the so-called "popular' price" car, round about £300, is likely to go up about £50. Imports Will Fall Off. "The increased tariff will mean that people will not buy as many cars as hitherto, the dealers will cut down their importations, and the Government will not get the duties they are getting at present. It will be another case of the goose and the golden egg." These remarks were made by one retailer of Canadian-made cars. It was possible, he said, that Canadian dealers would have to go into the question of whether it Would be more profitable to import their cars from the United States. If this course were decided upon it appeared likely that some of the factories in Canada would have to close down. Asked if he thought it likely that factories would be established in New Zealand, he said that he did not think so. ""The Government is virtually holding a pistol to the Canadian Government's head, but I think it is doubtful whether the shot will ever be „fired," declared another dealer. The new tariff would j add about £50 to the cost of the moder-ately-priced Canadian car. It was rather too early to give a definite opinion as to the general effect upon the motor business in New Zealand, but a falling off in the sales of new cars and higher costs generally were likely to result. Too Early to Shout. The opinion that it was a little early to start shouting was expressed by another dealer. The higher duty was not yet on, and might never go on. If retained it would undoubtedly achieve its object. Importers would then have to purchase in America, where the price, ex factory, of the same type of vehicle was anything from 20 to 25 per cent less, owing to the benefits of mass production and larger output. Few of the people realised this point, and it was a very important one. Thus with some makes of cars the increase in the landed cost, if the car was produced in America instead of Canada, would not amount to a very great deal. There was one make of car, however, ■that would be seriously affected by the new tariff, he said. The American factories turning out this particular brand of car manufactured only left-hand drive vehicles, which were prohibited in New Zealand, owing to the fact that the rule of the road is to keep to the left and not to the right. Unequal Retaliation. A point mentioned by several dealers was that whereas Canada could produce I her own butter New Zealand could not ! produce her own motor cars. Thus vhe [ Government's retaliation was being ear- | ried out at the expense of the New Zealand people. The manager of a company handling both Canadian and American cars expressed the view that the amended tariff would chiefly affect the small tradesman and the poorer man, who constituted the buyers of the lower-priced cars. It was a shocking thing for the small man and would mean that the average owner of a small business would find it extremely difficult to buy a new vehicle. There" were no British light trucks on the market suitable to his needs and he would practically be forced to buy at the higher price. "More than 75 per cent of the motor cars in Auckland are used in connection with business, so that it is the business man who is being penalised," said a salesman. The Government, therefore, coukl hardly claim that the increased tariff was purely an increase on a luxury. The general opinion of the trade is that the man who can afford to buy an expensive car will not be affected by the change. The lower-priced care of American origin are mostly produced I in Canadian works, but the more expensive types are in nearly every case built in the United States and their cost will not be increased.

Equalising the Trade Balance. "The new tariff will certainly be to our advantage and will give a preference to English cars that we should have had lon°: ago." said a dealer in English makes. "It is only by acts like this that the Government can equalise the diverse trade balance,"' he said. •'•However, we don't want to be too jubilant. I think it is regrettable that Canada has adopted the attitude she has done, for it does not seem a truly British spirit." The total number of vehicles landed in New Zealand for the sis months ended June 30 was S9S3, and of these 4570 came from Canada. Vehicles from the United States numbered 2536. The value of the Canadian vehicles was £554,990 and that of those from the United States £504,829. These figures illustrate the big number of lower-priced cars that come from Canada.