Car Firm Replies To 'The Press”

Press, Volume CIII, Issue 30499, 22 July 1964, Page 11

Car Firm Replies To 'The Press”

“Although the long-standing attitude of ‘The Press’ towards the motor-vehicle assembly industry is still ‘anti,’ Standard - Triumph (New Zealand), Ltd., is encouraged by the paper’s opinion that economically the company is not such a bad hat as could have been the cotton-mill project,” said Mr A. R. Cutler, a director of the firm and local manager, commenting on the leading article in “The Press” on Monday. “Admittedly, a hard bargain has been driven, for the land and buildings concerned, but as the Government accepted it the company believes that it was not as hard as other bargains the Government was asked to consider in this matter. “Some comment is called for on the '-inducements, which ’The Press’ says are many, that have been offered to Standard-Triumph (New Zealand), Ltd., in this deal,” Mr Cutler said. “First, the parent company, the Standard Motor Company, Ltd., England, has shown its faith in both its New Zealand operations and the New Zealand economy by agreeing to invest a considerable sum of money in this new project. This money will be brought to New Zealand through normal banking channels as wel as in the shape of more motor-vehicles on a nonremitting import licence, and is a common and accepted method of bringing additional capital into New Zealand for the use of this industry. .

Import of Plant “The company is still required to prove that any licences needed for the import of plant are fully justified, as is any other manufacturer in the country. . “The assistance offered by the State Advances Corporation is, to quote the Deputy Prime Minister (Mr Marshall) ‘in line with normal lending policy of the State Advances Corporation.’ “As for the . special discount which ‘The Press’ says the company has received from the New Zealand Railways Department for a distribution contract over twothirds of New Zealand, suffice it to say that a contract has been negotiated between the Railways Department and the company and that the rates in this contract indicate little advantage over rates recently published . by the Railways Department for the ' conveyance of new motor-cars by rail from centres other than Nelson. “ ‘The Press’ need have no worry that the taxpayer has been ‘railroaded’ on this aspect of the matter,” Mr Cutler said. “The service offered by the Conference Lines is, we believe, completely within the scope of the terms' this organisation itself has laid down for the operation of ports in New Zealand. “The company challenges the statement by "The Press’ that it ‘will also be subsidised by the Nelson Harbour Board’s ratepayers, c_? by

other users of the port’,” Mr Cutler said. “ ‘The Press’ should have sufficient enlightenment to know that bodies such as the Nelson Harbour Board cannot operate outside the terms of their by-laws and regulations, and the rates quoted to the company for the use of this port are therefore those quoted by the Nelson Harbour Board’s by-laws and regulations. These rates, incidentally, are comparable with others quoted to the company from a number of other ports in New Zealand, and must therefore be looked on as reasonable both from the point of view of the taxpayer, the harbour board concerned, and other users of the port. “ ‘The Press’ comment with regard to the motor industry as a whole being uneconomic has, of course, been this paper’s view for a considerable number of years, and Standard-Triumph’s move to Nelson would not in any way alter ‘The Press’ thinking in this specific matter,” Mr Cutler said. “The fact remains, however, that, even with the incorporation of a reasonably high local content by the motor industry as a whole, motor-cars can be sold to the buying public at retail prices less than would be the case if built-up vehicles were imported. This would also seem to indicate that, economically, the industry does provide a worth while service to the people of New Zealand. “Finally, we take comfort in ‘The Press’ statement that Standard-Triumph has purchased a desirable diversion of industry, population, and employment opportunities from a major centre to a minor one,” said Mr Cutler.