THREAT TO N.Z. INDUSTRY

Press, Volume LXXI, Issue 21536, 27 July 1935, Page 28

THREAT TO N.Z. INDUSTRY

A .. ...snlte Spring-Seat Making For .Gars PROPOSED TARIFF CHANGES ' A local industry which haa attained some importance over the last year, and which employs 54 men and women in one Christchurch factory alone is threatened with extinction by the proposed changes in the customs •duty on unassembled motor-cars, announced thi3 week by the actingMinister for Customs (the Hon. A. Hamilton). The industry, which will be hardest hit by the proposals, produces spring-seats for cars assembled In New Zealand. According to Mr 7. W. Thomas, president of the Canterbury branch of the Motor-body Builders' Association, the Minister's announcement has come as a bombshell to the trade, and if the changes are brought into operation they will destroy what has taken a year of enterprise, and confidence to build *p. When the general tariff was revised last year, the duty on motor vehicles i Imported in a knccked-down condition was lowered in comparison with that on . finished cars. Under this provision large assembly factories have been developed in New Zealand, and a big demand has been created for spring-seats and upholstery. Tins demand has been progressively supplied by New Zealand manufacturers, some of whom have expanded their business premises and employed many more hand 3. Mr Thomas said yesterday that it looked as if Mr Coates had been prevailed upon in England to permit the importation of seatsprings assembled in frames. The local branch of the Motor-body Builders' Association intends to take the matter up with the Government and to do all in its power to protect an Industry which promises to absorb an Increasing number of men. Increased Staff One Christchurch firm, the New Zealand Lace Web Company, Ltd., has increased its staff, from August last year, when spring-seat making was undertaken for car assembly, from' J 9 to 54. It has extended its plant and premises and made plan 3 for further extensions, and the threatened curtailment of its protection is expected to have very serious results. At the moment the firm is committed to the extent of £SOO on orders and promised orders. The Lace Web Company is doing English car work at present valued at £l6O a month, and it is estimated that if all English cars were equipped -with seating in New Zealand the work would be worth -an additional £BOO a montn. The average labour expenditure on each car amounts to 16s, British materials used total £l, ond New Zealand packing timber for crates and railage is worth 3s. The firm has spent, for example, on pinus packing timber alone and over the last three months, nearly £2O. It is claimed that the use of local materials and locally-made machinery is beneficial to other industries which will be seriously hit by any change in the protective duty. Young: Men and Women If local firms secure the seating work for American cars they hope to be able to increase their staffs, which, during the last year, have been recruited from the class of labour which, is causing most concern—young men and women from 18 to 21 years of age. At the Lace Web factory there are many youths and girls employed on good weges, some of whom had not obtained work until the factory began to expand. The rate of wages paid to men is from Is 7d to 2a an hour, and girls and women are paid at rates between £1 and 47s 6d a week. The workers can be quickly trained, and, the work they have to undertake congenial and healthful.

An official Of the Customs Department In Wellington stated yesterday that the proposed changes would apply to all Imported cars, American *s well as British.

CHANGES APPROVED

REVERSION TO FORMER CONDITIONS VIEWS OP MOTOR AGENT Approval of most of the proposed •hanges In the customs duty on unassembled motor-cars was expressed by Mr V. J. McKibbln, manager of South Island Motors, yesterday. The changes, he said, amounted practically to a reversion to tariff Item No. 18, which was the definition of "completely knocked down," reluctantly agreed to by the Minister for Customs and gazetted on October 18, 1934. This definition had been previously approved by the Motor Trade Association, the Body Builders' Federation, and the New Zealand representative of United Kingdom motor manufacturers. Briefly it defined that to comply With section 16 of the Customs Act Amendment Act, 1934, motor-cars had to be imported with unassembled chassis and with bodies in shell form in the prime without any upholstery or seat springs, but including any other body material at the importers' discretion. Any importer could import in a more completely knocked down condition if he chose. "Unfortunately, before allowing any opportunity for serious consideration —let alone a fair trial —of tariff item No. 78. the Minister almost immediately, and without warning, gazetted on December 6 last another definition (No. DO) to come into force on September 1, 1935, revoking tariff Item No. 78," Mr McKibbln said. It was apparent that the drive towards completely knocked down bodies was tending to centralise everything connected with the assembly, and eventually the distribution and im-1 portation of motor-vehicles. This cen- j tralistaion, if fostered by the Govern- j ment, would inevitably result in less manual employment, and more laboursaving machinery in assembly, and it was possible to foresee the whole industry controlled by a few hands.