Car Firms Attacked

Press, Volume CVI, Issue 31153, 1 September 1966, Page 1

Car Firms Attacked

(From Our Own Reporter) TIMARU, Aug. 31. Taxi operators had been subjected to what amounted to “extortion” and “blackmail” by some franchise holders over the years, said Mr R. H. Greenaway (Otago) at the annual meeting of the Taxi Proprietors’ Federation today. The conference will express concern to the Trade Practices Division of the Department of Industries and Commerce at the policy adopted by the motor industry demanding a trade-in before releasing new cars. Mr Greenaway said the in dustry should be given some form of protection against the

activities of offending dealers, oossibly by the reintroduction if the "Board of Trade. “Sev»re malpractices have occurred,” he said. Evidence was difficult to obtain, as so many licensees declined 'deals and purchased second-hand cars elsewhere. Some completed deals and were then reluctant to complain for fear of repercussions with the next car, said Mr Greenaway. Mr G. L. V. Hunter (Auckland) condemned the Government for not insisting on the legislation it had brought forward for restriction on the resale of used cars. He said the legislation had been a “dismal failure,” and innocuous from the first. The intention was to protect buyers from the depredations of dealers demanding outrageous and prohibitive prices. He moved “that, in view of |the failure of the Government's efforts to curb such I nefarious practices of car

dealers in demanding outrageous prices for used cars after 12 months’ restriction has passed and they have regained control, the Government be recommended to take the line that it be an offence for a car dealer to sell or allow to be sold, any vehicle above the original list price.” This was adopted. “This is a two-pronged problem,” said Mr J. R. Wilkinson (Hutt Valley). “If the Government means what it says in price-fixing legislation, it should insist that a new car should not be sold consequent upon a trade-in. It is a blatant breach of the price regulations,” he said. The contractual obligations of taxi-cab organisations have yet to be debated, as has the question of protection from assault. The Commissioner of Transport (Mr R. J. Polaschek) will address the conference at its final session tomorrow morning.