BUDGET PROVISIONS More new cars possible

Press, Volume CXI, Issue 32631, 12 June 1971, Page 18

BUDGET PROVISIONS More new cars possible

(N.Z. Press Association)

WELLINGTON,

June 11.

The proposals for cars announced in the Budget will maintain and possibly exceed the present level of new car registrations, which is about 72,000 a year, said the Minister of Customs (Mr Adams - Schneider) today.

The funds provided for c.k.d. cars to cover increased costs since 1971-72 licences were first issued, and for the importation of 10,000 more built-up cars, would be allocated to licence-holders on a pro rata basis, according to the value of 1970-71 basic licences held, he said. The Minister referred to his statement last December that the 100 per cent of 197071 licences issued then for the 1971-72 period was an initial issue only, that all the funds then available had not been issued, and that actual performance under 1970-71 licences could be a factor taken into account when these funds were finally allocated.

“For this reason, and because the no-remittance licence provisions are to end next February, I intend to see how licence-holders have per-

formed in the no-remittance field,” he said. “The decision to stop issuing no-remittance licences will affect production in the assembly plants, which is also something I want to study.”

Mr Adams-Schneider said that within the next few days the Customs Department would be asking all licenceholders for information. “We want to know if all the 1970-71 basic licence has

been used,” he said. “We i also want to know from assembly plants what their production figures are for cars i imported under no-remittance licences for the period July i 1, 1970 to June 30, 1971, and : from the built-up licenceholders what their no-remit- I tance licence performance i has been during the 1970-71 | licensing period.” i The Minister said he felt i it was necessary to have this information because no- : remittance performance i established three important things—consumer preference, the ability of licence-holders to gain extra business, and the effect of that business on their general activities. “When this information is received from all the licenceholders concerned, additional licences will be issued to both built-up and c.k.d. licence-holders using no-re-mittance performance and no-remitance production respectively as the base. It is

now up to the licence-holders to supply the information needed as quickly as practicable.” In all cases, the additional licence issued would be subject to the condition that the 1970-71 basic licence had been fully used. Furthermore it must have been used to import the particular make of car for which it was originally issued. The built-up car licences issued to the assembly companies would be endorsed that they must be used to import the same models as those they assembled in New Zealand. Imported radios would be excluded. The Minister said he was sure the public would benefit from the decisions made by the Government. They have been framed to make a positive and significant increase in the availability of new cars, and at the same time to have regard to consumer preference.