‘Did Not Know Of Tax Increases’

Press, Volume CVI, Issue 31362, 6 May 1967, Page 3

‘Did Not Know Of Tax Increases’

(New Zealand Press Association) WELLINGTON, May 5. General Motors had no prior knowledge of the Government’s decision to increase sales tax on motor vehicles, Mr I. H. Chew, the managing-director, said today.

He refuted a statement made in Parliament last night by the Leader of the Opposition (Mr Kirk). Mr Kirk said Labour members had been informed that General Motors knew of the impost of sales tax, had directed its staff to deliver motor cars until 10.30 p.m. on Thursday and had told their customers that they must be paid for on Friday. Mr Chew said that because of the impending rail strike General Motors had been Informed by the Railways that they would not guarantee deliveries of vehicles at destination unless they were delivered to the rail head by Wednesday and on this day de-

liveries continued until lat” in the evening. Since the beginning of the year, when the Government gave an indication that further economic measures might be necessary, there had been an expectation on the part of the public and the motor trade alike that sales tax could be one of the Items affected. Since that time the company has been under constant pressure to speed up deliveries.

There were no exceptional deliveries yesterday and work ceased at the normal time of 4.15 p.m. "All vehicle deliveries on Wednesday and Thursday were in accordance with our normal terms of trade.”