PRICES OF CARS

Press, Volume LXXXIV, Issue 25579, 21 August 1948, Page 6

PRICES OF CARS

“ FULL BENEFIT OF CHANGE MAY NOT BE FELT ” (P.A.) WELLINGTON, August 20. The opinion that though there was likely, ultimately, to be some reduction in the retail selling price of motor vehicles, the reduction was unlikely to be in full proportion to the exchange rate reduction, was expressed by the president of the New Zealand Motor Vehicle Importers' Association, Mr T. B. Cavanagh. The exchange would do something toward the restoration of balance between New Zealand’s economy and those of countries which supplied her with goods, nevertheless prices overseas were continuing to rise, and by the time the present stocks of motor vehicles imported on the old exchange rate were quitted, some of the benefit of the reduction might have disappeared, Mr Cavanagh said. That was evidenced by the rise in the factory prices of cars between 1946 and 1948. Mr C&vanagh said the comparative wage levels to-day in the United States and New Zealand were about in a proportion of 9s an hour and 4s an hour. A man in New Zealand would therefore need to work about 2| hours to. buy the work done by an American in

one hour. In pre-war days, a New Zealand man had to work only 1$ hours to gain the same result. The used car market would be affected correspondingly, in his view. “This is the right move to make,” said Mr Cavanagh. “The Government had only one alternative—a further increase in wages. I think they have taken the course which will bring the least difficulty and the greatest benefit”