Motor-car Prices Sir,—Last December the

Press, Volume CVIII, Issue 31730, 13 July 1968, Page 12

Motor-car Prices Sir,—Last December the

average weekly earnings of Australian males was $66. I am unable to ascertain the New Zealand equivalent, but I do know that it would stand at a much lower figure. Last December the prices of new motor-cars in Australia were very much lower than New Zealand prices. For example, the B.M.C. 1800 sells at $2365 in Australia and at $3140 in New Zealand. Why this difference of $775? In both cases sales tax is included in the price. If it has been brought about by the cost of production then it would appear that we should give it up and ask Australia to include us in *heir circle of delivery and get on with the growing of strawberries for exnort to help pay for the imports.— Yours, etc, TOP PRICE. June 5. 1968,

[An importer of B.M.C. 1800 vehicles from Australia replies: “New cars always sell in the country of origin er manufacture at a much lower figure than similar models offered for sale on the New

Zealand market. Without becoming involved in too much detail, the wide difference in price is accounted for by sea freight and duty and wharf charges, to which there is added the New Zealand rate of sales tax—4o per cent (We believe the sales tax in Australia is 20 per cent.) New motor vhicles are also subject to Government price control, which allows no more than a fair margin to the retailer. The sales tax alone on an 1800 considerably exceeds $700.”]