Car Imports

Press, Volume C, Issue 29539, 14 June 1961, Page 14

Car Imports

The announcement that about 4600 additional cars will be available in the next 12 months will be welcomed. It is not, of course, enough to make the country’s car population reasonably up-to-date. As the Minister of Customs (Mr Marshall) said when announcing the new arrangements, cutting motorcar imports has been an easy way to relieve the strain on overseas funds in times of difficulty. Another authority showed recently that, whereas in 1938 motor vehicles were 9 81 per cent of all imports and in 1955 7.85 per cent., in 1958 they were no more than 5.39 per cent The successive curtailments of imports have led to a serious shortage of reasonably modern cars. Yet the proportion of cars to population has continued to grow—at the cost of keeping older cars on the roads longer than a proper regard for efficiency and economy would dictate. The shortage has been attended by other evils, notably the high premiums on the second-hand market. Only a free market for cars would end these disadvantages; and unfortunately, the country’s overseas trading position makes a free market out of the question. The Government has, nevertheless, done much to Sh alleviate the shortage. The V new policy recently F announced for no-remit-tance licences is expected to permit about 1000 additional cars to be imported this year. An additional 3600 cars are expected to become available through the scheme originated during the term of the last Government under which motor-ear assembly companies were promised that if the New Zeeland content was increased (thus saving exchange) they would be compensated by increases in their basic allocation allowances. The assembly companies have carried out their share of the bargain; and the present Government is now honouring the

arrangement of its predecessor. It is an expedient that has disadvantages. Costs seem bound to rise when components which can be mass-produced overseas have to be made in much smaller numbers here; also, some techniques must obviously be cheaper when overheads are spread over many instead of a relatively few cars. However, the expedient may be justified by the level of employment in the assembly plants being sustained as well as by the effective increase in the number of cars becoming available. But everyone will look forward to the day when expedients will not be necessary and when New Zealanders will be able to buy new cars as freely as can the people of most other countries.