MOTOR VEHICLES.

Auckland Star, Volume LXV, Issue 162, 11 July 1934, Page 9

MOTOR VEHICLES.

ASSEMBLING INDUSTRY. PROTECTION RETAINED. "As an item in the tariff schedule motor vehicles have a number of special features," said Mr. Coates in his statement. "The Customs taxation derived from them is of importance from the viewpoint of revenue; they are a class of manufacture in which we give an especial degree of British preference. In passing, it may be mentioned that of the number of our motor vehicles imported the percentage from United Kingdom in 1929 -was 15 per cent; in 1030, 21 per cent; in 1931, 05 per cent; in 1932, 83 per cent; in 1033, 75 per cent. Although they are not made in New' Zealand, we are concerned in the question of body building and also in the more substantial question of assembling cars. "The Tariff Commission's recommendations, not all of which the Government propose to adopt in full, cover the following points: —(1) Abolition of the differential duty between the complete vehiclo and the chassis. This was intended to encourage the building of motor bodies in New Zealand. It has not succeeded. (2) Imposition of a flat rate duty of 13 per cent on all motor vehicles entered under the British preferential tariff. This would have the effect of reducing the advantage in duty obtained on vehicles imported in parts—'completely knocked down' —for assembling in New Zealand. (3) Increase of the duty on motor cycles, under the British preferential tariff, from the present 1U per cent to lu per cent. "From these recommendations the Government's decision departs in two respects: First, with regard to the assembly of cars in New Zealand, the commission were of opinion that the industry was one suited to the conditions in the Dominion. They found from figures produced to them that, owing to freight and other savings, the industry could be economically carried on without special protection. Information obtained, however, since the commission reported, I with respect to the more recent types of cars which have come upon the market shows that some concession in the rate of duty is necessary if the industry of assembling cars in New Zealand is to be carried on satisfactorily. The Government have therefore decided to depart from the recommendations of the commission in this respect. Having regard to the desirability of encouraging the assembly of cars in New Zealand, wc propose'that 'completely knocked down cars should be admitted at lower rates than those on cars completely set up. "Honourable members and others whe are familiar with conditions in the motoi trade are aware of the value of tlu employment provided in assembling here in New Zealand (lie cars of some of the principal British and American maim facturers. We do not propose to disturl this condition, but, on the contrary, tlu aim is to encourage other manufacturers to assemble their cars in New Zealand and utilise New Zealand labour an-; material.