THE MOTOR TRADE

Press, Volume LXVI, Issue 20021, 1 September 1930, Page 12

THE MOTOR TRADE

EFFECT OF NEW DUTIES. AMERICAN AND CANADIAN CARS. The Government's decision to place a retaliatory duty on Canadian motorcars ;has already affected the importation of automobiles made in Canada into New Zealand. ; The manager of one large Christchurch . importing firm, interviewed on Saturday by:-a representative of The Pbess stated that his firm had found it necessary to cancel two big Canadian shipments ready for transport. Another firm's representative pointed out that motor firms in general had been placed in a quandary oven the changes in the tariff, and the consequent big increases iu the prices of Canadian and American cars, as it would take some time to learn whether the public requirements would change radically with the duty change—wheth3i* the big, high-priced car Avould, even at the increased price, remain in chief demand, or whether a preference would be shown for the low-priced light English type. The general opinion expressed was that if the new tariff rate is retained the public demand will swing decidedly in favour of the small English car.

Heavy Imposts. "Some of the importers seem to have misunderstood the figures in connexion with the tariff changes, and these have consequently been misquoted," stated one of the importers interviewed. "Previously to the change the duty on British cars was 22 per cent., on Canadian 22 per cent., and on cars from the United States 55 per cent. Under the revised tariff the figures are: British 23 3-5 per cent., Canadian 50 per cent., and U.S.A. 69 per cent. "The 19 per cent, difference in the Canadian and U.S.A. duties is just about equalised by the fact that cars of a similar make cost more to produce in Canada than in America," he continued, "so that now it is a matter of indifference, so far as the duty is concerned, whether the importer gets his cars in Canadian or American factories. In the meantime, many of the importers have instructed the shippers to withhold all but essential shipments, in the hope that later a tariff adjustment will be made, when Mr Forbes confers with the Can'adian authorities." He added that his firm liad not yet increased the price of cars, but he understood that some of the American cars had already been advanced in price. If the new Canadian tariff were retained, however, an increase in the price of the Canadian cars would be necessary.

British Small Cars. "The effect of tho tariff, in the meantime, has been to give a tremendous impulse to the business in the small English car," said the importer. "A ' recent report stated that British manufacturers have made provision .for drastic price reductions in order to compete with the American and Canadian product. If the Canadian tariff is allowed to stand, this should then be .Britain's opportunity to got her share of New Zealand business,' which New Zealand is ready to give her." . Mr W. P. Blackwell, managing director of Blackwell Motors, Ltd., Christ- " church, said: /"The New Zealand Government will suffer very much by the , increase in the duty on American cars, for the reason that the importation of those types, which have been very

popular hero, will stop to a great extent. The JSnglish car, with its lower price and preferential tariff, will have an increase in sales, but this will not balance the loss of duty on the high-priced American product. I believe that the tariff revenue the Government will receive from cars coming into the, country this year will be, only half of what it has been, owing to the changes. The high-priced car has paid big _ duty in comparison to what the low-priced Canadian or English car will pay.

Canada and The Tariff. "I don't how Mr Forbes can prevail on the Canadian Government to give way over ,the tariffs against Zealand/ if the' Government is pledged to protect the Canadian farmer," continued Mr Blick well, "One can put doty on, but it is a hard job to . get it off." Questioned as to whether the increased duty would act as an incentive to Canadian or American manufacturers to open manufacturing branches in New Zealand, Mr Blackwell expressed r the opinion that the domestic market in the Dominion not, big enough ' to meet the overhead incidental to a big factory. Only .two cars, both lowpriced, could be manufactured in New . Zealand on. a ; profitable basis. There were not enough, of other makes sold to warrant opening a factory. Mr R. M. Adams, manager of Adams, Ltd., Christchurch, stated .that it had already been found necessary to cut American and ( Canadian orders down. Towing to the effect- the changed tariff was having on the motor-car trade.. Cars at present on the water, he pointed out, would come in on the i old duty, but cars leaving Canada or . America, after the-.new duty was made woiuld. be affected. "The change has upset the confidence of the business people," Mr Adams said. "They don't know hdw to import until they find out how the people • wlio buy cars will take the.increase in prices." Mr Adams also expressed the opin*lon that the change would result in decreased revenue to the Government. .

Government May Lose Revenue. "None of-the motor / firms is making much profit out of the business today, and the Government is the biggest shareholder, after all, in the trade. The tariff has become a prohibition, and the Government is using the motor trade as a chopping-blocK," declared. Mr Adams advanced the opinion that the retaliatory duty would not have such a great effect on Canada, as was expected, because most.of the Canadian factory workmen were really Americans, living in America,, wli<> went across the border daily to work. Beqause of this Mr Adams did not think that Mr Forbes's retaliatory measure would "cut much ice"'with Canada! "It may interest your readers," concluded Mr "Adams, "to know that the American Government has now appointed a committee of three Democrats and three Kepublicans' to endeavour to effect an adjustment of tariffs between their country and other nations. They recognised in America that the tariffs-they ' have, dfrawn. up in recent years have interfered \ seriously • with the coun- > ' try's'export trade.' They now wish to come to mutual arrangements witji . i other countries over, duty, otc. This is a good opportunity for Mr Forbes to approach America, and endeavour to get some of the- Dominion 's produce into the country, by having, tlje tariffs lowered. Tbo Government of the United States is more open to-day to make » reciprocal tariff agreements. I think mutual adjustments could lie made, and

much of the trade friction between the nations could thereby be » eliminated." SHIPMENTS OF WOOL. RATIONING SCHEME ADOPTED. (UNITED TRESS ASSOCIATION—BI ELECTKIC TELEGHAPH—COriP.iGUr.) SYDNEY, August 30. In an attempt to ensure profitable returns to all the companies, the Overseas Shipping Representatives' Association have formed a special dispatch committee to ration wool shipments under a log which has been drawn up. Provision is made for a certain number of vessels to serve each wool sale, and it is laid down that the number of ships on berth must not be more than is adequate to handle all the wool offering. CANADIAN CAR POSITION. How will a British car company manufacturing in Canada be affected by the recent alterations in the New Zealand tariff? The British Trade Commissioner in New Zealand is advised that the English Austiu Motor Company is establishing a Canadian subsidiary styled Canadian Austin Car Company, Ltd. Manufacturing premises have been secured in Toronto. Assembling starts forthwith; ultimately manufacture is to be carried out there. Mr E. P. Clarkson, former managing director of the Canadiau Dodge plant, is iu charge.