CRISIS FEARED

Auckland Star, Volume LXXVI, Issue 254, 26 October 1945, Page 8

CRISIS FEARED

I THE MOTOR INDUSTRY IMPORT ANGLE IS OBSCURE Motor traders in Auckland are expressing increasing concern at the deterioration in the transport position in New Zealand and are hoping for an early clear-cut statement from the Government indicating its policy regarding imports, particularly of commercial vehicles. Despite the releases of trucks and cars by the Army and imports under lend-lease during the war, there remains, it is reliably stated, a tremendous dearth , of commercial vehicles which is acting as a break on rehabilitation and industrial and farming development. Army vehicles sold In the early days of the disposal scheme are already in many cases worn out and commercial firms are unable to replace them. Motor distributors and garages are experiencing considerable difficulty in effectively rehabilitating their mechanical and sales staff, a problem which assumes a more serious aspect when it is ! realised that the New Zealand Motor' j Traders' Association is the second . largest organised industry in the ; Dominion. "During the war the motor trade did a good job with the constant supply of skilled mechanics and tradesmen to the Forces arxl in the maintenance and repair of Army vehicles, a work which earned a generous tribute from the American authorities," said a prominent executive in the motor industry to-day. "Staffs have been greatly overworked and are now feeling the strain. They are unsettled and restless because the immediate future is clouded with uncertainty. Motor firms cannot plan for the future till they know what 'the Government's policy is regarding the importation of Canadian motor vehicles, which form the backbone of commercial transport in this country."

Big Rise in Prices

The quota of motor imports permitted from last July to the end of 1946—75 per cent of the monetary value of 1938 .imports—appears promising until the figures are examined. Then it is found that the actual number of vehicles will probably be considerably less than half those shipped here in 1938. Prices for unassembled cars are. on the average, up by 50 per cent and those for some of the British cars, the first since before the war, which have recently arrived, are higher.

Motor vehicles imported into New Zealand in the year ended October 31, 1938. were valued at £5,694.553 and numbered about 28,500. If the current quota until the end of 1946 is fully met, the number of vehicles may be expected to be somewhere between 10,000 and 14.000.

At the moment most motor firms are occupied with repairs and maintenance. Selling of used cars is a relatively minor activity because of the high prices asked by owr.ers. Most dealing in used ~ars "hese aavs is carried on privately and renorts of vehicles seven and more years eld changing hands at well above the original purchase price are common. There are solid grounds for believing that the majority of owners are retaining their cars until thev can buy new ones.

Ending of lend-lease and the mutual aid agreement with Canada and the declared policy of conserving dollar funds, have complicated matters in recent weeks, but it is considered imperative by heads of the motor industry that the Government should indicate without delay means by which the dual purpose" can be achieved of restoring the industrv, at least partially, to its pre-war status and thus assuring rehabilitation, and also avoiding a crisis in commercial transport.

Another aspect causing some anxiety in the motor trade is a fear that the approved quota of imports until the end of next year may include vehicles allocated for use bv Government departments. It is felt that such vehicles should be over and above those under the import quota.