Trade Challenges Minister On Need For More Cars

Press, Volume XCIX, Issue 29330, 8 October 1960, Page 12

Trade Challenges Minister On Need For More Cars

(New Zealand Press Association)

ROTORUA, October 7 The retail motor trade has challenged the Minister of Customs (Br Boord) to prove that there is a greater need for the importation of other consumer goods to use the increased national export income of last year, than there is for new cars. The new president of the Motor Trade Association, who was elected at the annual Conference in Rotorua this week, Mr F N Gibbons, of Palmerston North. Said today that New Zealanders would be going into yei another Christmas with used car prices out of reach of thousands of people. Used car prices were at record levels. “Reasonably small mileage cars in the £5OO to £6OO, bracket are nearly impossible to obtain, because half of the 500.000 cars in this country are more than 10 years old, and are wearily approaching the 100.000 mile mark, he said “The position is steadily becoming worse as the answers to the problem go unrecognised by the Government. “With a small falling-off In our national export income In 1958. Mr Boord allowed motor-car licences to the extent of 4 6 per cent of the income of £250,183.000. In 1959, our over-

seas exports had improved to £293,400,000, a £43 million', or 14.6 per cent. Increase “But consideration toward motor-car Imports and the needs of the buying public by the Minister means nothing. Instead, the buying public has lost out again, the allowance from the national export income falling from 4.2 per cent, to 3.6 per cent.” Mr Gibbons said that while used car prices increased, those who were saving industriously for their cars found it difficult to catch up jyith the increase The retail motor trader did not control prices, he said Demand' and supply did that. “If the public makes the demand the supplies set the price “The retail outlets are accused of setting high prices We suggest to the 500.000 car-owners and to those people who would ■like to own their own ear but cannqt buy their choice, that the Government sets these prices because it does not allow us a reasonable share of our overseas exchange."

Mr Gibbons said that tn prewar years motor-car licences received 7 per cent of the export income At no time in the las’. 15 years had there been any comparable figure. New and used car buyers could look forward to this Christmas, and during 1961, to no relief from the “frustrating” position.