Dept. To Settle Dispute On Bicycle Imports

Press, Volume CIV, Issue 30768, 4 June 1965, Page 1

Dept. To Settle Dispute On Bicycle Imports

The Minister of Industries and Commerce (Mr Marshall) was calling a special meeting of cycle retailers, manufacturers, and wholesalers to be held in Wellington next Wednesday to discuss cycle imports, said the president of the North Canterbury Retail Cycle Traders’ Association (Mr G. Bennett) yesterday.

The meeting, he said, was being called to enable the Department of Industries and Commerce to settle the issue. Cycle retailers, manufacturers, and wholesalers had been unable to settle the issue of cycle imports themselves, said Mr Bennett.

The basis of the retailers' complaint is a move by the Department of Industries and Commerce, which Mr Bennett said would virtually create a monopoly for Morrisons Industries, Ltd., for cycles throughout New Zealand. The latest move by the department, he said, had been to place cycle imports in the C category in the import schedule. This virtually meant that members of the Retail Cycle Traders’ Association had no basic licence for imports. Retailers’ Aim The retailers wanted to be put back on to A licences, Mr Bennett said. “The association has asked Mr Marshall to reinstate the importation of cycles and cycle accessories into the A category and to impose the protective tariff duty, as recommended by the Tariff

and Development Board, if he feels the local cycle industry requires this protection,” said Mr Bennett. “This would break a monoopoly and give the New Zealand cyclist the right of choice when buying or repairing his cycle.” The secretary of the New Zealand Cycle Traders’ Federation (Mr C. Dean) yesterday said that the infant bicycle manufacturing industry in New Zealand was held up by the Government as an example of all that a good secondary industry should be —that no protection was asked for and none was given, and that the cycle was competitive in price and quality. But, said Mr Dean, the import schedule was being used, temporarily at least, to keep out competitive imported cycles. “Violating Own Policy" “In giving protection in this fashion, the Government is violating its own policy of protection by tariff only, and appears to be breaching the General Agreement on Tariffs and Trade, which recognises import control only as a corrective for balance-of-pay-ment troubles,” said Mr Dean.

quality had already been accumulated. We stated them to the board, at that time. “Now a further year has elapsed, and complaints of mechanical failure and unsatisfactory design are occurring out of all reasonable proportion to the number of Morrison cycles on the road. “To say, as the manufacturers claim, that the cycles are made in New Zealand to Raleigh specifications is only a play on words, because the specifications are not those accepted in England. Lower Standard Seen “And the cycles are certainly not up to the standard which has been available in New Zealand over a number of years. In fact, the New Zealand-made cycle has been classified as a B grade cycle by New Zealand cycle dealers, being of a standard similar to the B grade Raleigh previously imported from England.” Mr Dean said that Morrison's was endeavouring to rectify the faults, such as the replacement of the brake hub with one of English manufacture. “No doubt the many other faults we drew attention to at the hearing, and which have now become manifest, will be rectified in time,” said Mr Dean, “but at what cost to John Citizen, who must pay more and more for the doubtful privilege of riding a New Zealand-made cycle.”

“When the Tariff and Development Board sat 12 months ago, the New Zea-land-made cycle had been on the market only a few months. Nevertheless, evidence of the unsatisfactory