MANUFACTURE OF TYRES

Press, Volume LXXXI, Issue 24742, 6 December 1945, Page 4

MANUFACTURE OF TYRES

LICENCES TO STAND

APPEALS DISALLOWED , BY AUTHORITY

(P.A.) WELLINGTON, Dec. 5. Reserved decision disallowing nine appeals against the granting by the bureau of Industry of licences to three firms for the manufacture in New Zealand of tyres and tubes for motor vehicles has been given by the- Industrial Appeal Authority, Sir Francis Frazer. The tenth appeal, against the refusal of the Bureau of Industry to grant a licence for the purpose to a specific firm, has also been disallowed. The three firms to which the bureau granted licences were Reid (New Zealand) Rubber Mills, Ltd., Durilop Rubber (N.Z.), Ltd., and the Firestone Tyre and Rubber Company of New Zealand, Ltd. Three firms, which each appealed against the granting of each of these licences, were Michelin and Company, Ltd., A. S. Paterson and Company, Ltd., and the Avon-India Rubber Company, Ltd. The tenth appeal, against the refusal of a licence, was by G. W. Skellerup. "The weight of evidence is conclusive m showing that a country with conditions comparable with those of New Zealand, and with 300,000 vehicle registrations, can well support an economic tyre and tube manufacturing industry," said Sir Francis Frazer. "In my opinion the evidence as a whole leads clearly to the conclusion that tne tyre and tube manufacturing industry will be economic in itself. Only three units have been licensed, and the limitation in the number of units will enable each to obtain a sufficient share of the market, and so ensure full economic production. Furthermore, it has been decided that only sizes and types in general demand sha?i be for the present manufactured in New Zealand. Odd sizes and types, which it would be less profitable to manufacture in New Zealand and which constitute only about 10 per cent, of the total requirements, will in the meantime continue to be imported. "On the more general issue, I am satisfied, having regard to the purposes of the act, „ that the establishment of the industry in the form decided on will promote the economic welfare of New Zealand."