Rover exports safe — for now

Press, Volume CXIV, Issue 33693, 16 November 1974, Page 1

Rover exports safe — for now

(N.Z.P.A. Staff Correspondent) SYDNEY, November 15.

Government and industry discussions in Australia will decide the volume of Rover car exports to Australia from the Nelson assembly plant.

A Leyland Australia spokesman said today that his company was studying details of the Australian Government’s plan to safeguard jobs in the Australian car industry.

However the company would certainly meet its contract to import 800 Rover 3500 s in the present financial year.

The contract, under the New Zealand Australia Free Trade Agreement, expires at the end of March. What happened after that, th e spokesman said, depended on talks between the Australian and New Zealand Governments and between Leyland Australia and the New Zealand Motor Corporation.

Duty free Under the contract, the Rovers are imported Into Australia duty free in return for Leyland Australia exports of CKD packs and fully-assembled vehicles. Because of the N.A.F.TA. deal, the Rovers imported from New Zealand will escape the import duty increases announced by the Government. The Rovers sell in Australia for slightly more than $BOOO. Measures announced by the Government last night for helping the Australian car industry include a uniform company local content plan of 85 per cent —- to be phased in over four years — and immediate tariff increases.

Tariff charge There will be a 35 per cent tariff on complete cars when imports are less than 20 per cent of total passenger registrations. When imports of cars rise above 20 per cent, the tariff level will be 45 per cent. The higher tariffs will take effect immediately because of the present high level of imports — about 40 per cent of registrations.

S7OO increase Coming on top of the 12 per cent devaluation of the Australian dollar last month, the measures are expected to increase the cost of a fully imported Japanese small car by about SA7OO. The new price of a Datsun 120 Y is expected to be about 5A3300, and a Toyota Corolla about SA3OOO.