PRICE OF TYRES

Press, Volume LXXXVI, Issue 26266, 10 November 1950, Page 11

PRICE OF TYRES

Sir,—The retail price in Sydney for a new 800-16 four-ply tyre is £7 3s (Australian currency). The same tyre retails here for £9 7s 6d on a sterling basis. Conditions of manufacturing are very similar, with certain labour factors and the cost of raw materials operating in New Zealand's favour. Is it hunger for excessive profits, or is it plain inefficiency that requires our tocal licensed monopoly to claim the highest manufacturing costs in the British Empire?—Yours, etc., INTERESTED. November 9, 1950. *

Sir,—ln my opinion the tyre retailer has a good claim.for a higher margin of profit instead ,of the present small percentage which is allowed him for carrying stocks, paying accounts, giving credit, service and attention to the general public. The present high prices canntjt be blamed on to the retailer but on the excessive prices demanded by a tightly closed corporation with no fear of competition. The sooner the Government endorses its election pledges and allows private enterprise to bring the prices down, the sooner will the motorists of New Zealand be able to purchase this essential commodity at a reasonable price. —Yours, etc. TRANSPORT. November 9, 1950. i

Sir,—The prices of new tyres in this country in comparison with those ruling in other Commonwealth countries seems so disproportionately high that I would like to suggest that import restrictions be removed and British tyres admitted under a reasonable duty. The local motorist could get cheaper and better quality tyres even under a tariff of 25 per cent., and if local manufacturers cannot compete within this margin then there is something very wrong with the present setup.—Yours, etc., PLAIN BILL November 9, 1950.